Why customer centricity matters

In a recent CNBC Africa interview, Senior Financial Analyst for CGAP, Gerhard Coetzee, emphasized the critical role customer-centricity plays in banking the unbanked. Coetzee highlighted the need for financial institutions to focus on meeting the economic and social realities of customers, rather than solely providing financial services. He stressed that customers seek value in services that help them achieve their goals and improve their quality of life. With a customer-centric approach, firms can translate the value of customers into value for themselves. Coetzee also discussed the importance of collaboration between regulators and financial institutions to ensure customer outcomes are prioritized over compliance. While the African financial sector still has a long way to go in fully embracing customer-centric practices, there is a growing recognition of the benefits it brings to both customers and businesses. Coetzee pointed out examples of firms in Africa and globally that have successfully implemented customer-centric strategies, such as Zona in Zambia and pioneer insurance in the Philippines. These organizations have seen positive results from focusing their operations on customer needs and outcomes. Coetzee highlighted the role of technology, particularly digital financial services and mobile money, in driving financial inclusion. By leveraging technology to reduce costs and expand reach, financial institutions can better serve underserved populations and promote financial inclusion. Overall, the key theme of the interview was the significance of customer-centricity in addressing the needs of the unbanked population. By understanding and prioritizing customer outcomes, financial institutions can not only improve their own performance but also contribute to the economic empowerment and well-being of underserved communities. Coetzee's insights shed light on the transformative potential of customer-centric approaches in driving financial inclusion and fostering sustainable development.