Ecobank's Jeremy Awori on Africa's banking sector outlook
Africa's banking sector outlook for 2023 predict that asset quality risks will return and be more prominent, with households and businesses continuing to be hit by high inflation, rising rates, currency depreciation, and US dollar shortages, what does this portend for the banking sector? CNBC Africa's Terryanne Chebet caught up with Ecobank Group Managing Director, Jeremy Awori in Nairobi during the launch of Fingo, as the bank targets younger markets.
Mon, 08 May 2023 11:19:28 GMT
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AI Generated Summary
- The need for African banks to adapt to the digital preferences of the younger population is crucial, with Ecobank's partnership with Fingo exemplifying the potential for homegrown solutions to address African challenges
- Digital banking penetration in Africa lags behind global levels, presenting opportunities for growth and innovation in the sector, driven by factors such as smartphone penetration and quick adoption rates among the continent's youth
- The impact of global economic challenges, currency depreciation, and rising inflation rates poses significant risks for African banks, requiring proactive risk management strategies and diversification to navigate the uncertain economic landscape
Africa's banking sector outlook for 2023 is painted with challenges as asset quality risks are predicted to return and become more prominent. With households and businesses grappling with high inflation, rising rates, currency depreciation, and U.S. dollar shortages, the banking sector faces a tough road ahead. CNBC Africa's Terryanne Chebet sat down with Jeremy Awori, the Managing Director of Ecobank Group, during the launch of Fingo in Nairobi to discuss the future of the African banking industry amidst these challenging conditions. Awori highlighted the need for banks to evolve their services to cater to the younger population in Africa, which represents more than 50% of the continent's demographics. He emphasized the importance of digital banking and the partnership with Fingo, a young fintech company in Kenya, to launch the Fingo Africa app. This innovative app allows users to open bank accounts, conduct transactions, save money, make payments, and send money between Fingo accounts for free, all aligned with the digital preferences of the younger generation. Awori expressed his excitement about the partnership with Fingo, showcasing the homegrown talent in Africa designing solutions for African challenges.
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