https://www.engineeringnews.co.za
Africa|Business|Efficiency|Environment|Financial|Risk Management|Sustainable|Systems|Technology|Products
Africa|Business|Efficiency|Environment|Financial|Risk Management|Sustainable|Systems|Technology|Products
africa|business|efficiency|environment|financial|risk-management|sustainable|systems|technology|products

Industry leaders committed to transformation, barometer shows

8th April 2021

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

Font size: - +

The first African Financial Industry Barometer, developed by Deloitte in partnership with the Africa CEO Forum, reveals how, in the exceptional context of the Covid-19 pandemic, financial institutions operating in Africa are undertaking a transformation of their business model, governance and risk management capabilities.

The survey reveals that the top three priorities for financial institutions over the next 12 months are digitisation, being the top priority for a large majority of respondents, with 56% having started a digitisation programme and 31% of respondents set to start one within the next 12 months.

The second priority is operational efficiency, followed by mastering emerging risks.

Financial institutions are facing significant pressure on their profitability, especially in the context of increasing claims.

For 59% of participants, the African financial industry is increasingly attractive despite the recent departure of international groups. However, the crisis has led to an average level of sustainable transformation, regardless of the type of institution.

Insurance companies have fewer opportunities for growth, while banks express a risk of weakening their business model.

One of the key factors in the success of the financial industry transformation is the level of interaction between traditional players and new entrants. The ability of a traditional financial institution to open its systems to a partner is critical, and in some jurisdictions such as Europe, even mandatory.

The survey results show that African financial institutions have a positive perception of Open Banking-Insuring (58%).

Moreover, 42% of the financial institutions said they already have initiated partnerships with fintechs or insuretechs, and 42% plan to do so in the short term. Also, for more than 70% of participants, these partnerships are intended to develop new activities or new products.

It is now essential to include qualified independent members on boards of directors: close to 60% of the respondents intend to have more than 25% independent members in the medium to long term.

The majority of financial institutions have set up the traditional specialised committees and are gradually installing new board committees such as the technology committee or the ethics and public relations committees.

The survey also shows a growing interest in traditional green and sustainable finance.

The survey shows that 42% already cover the integration of environment, social and governance criteria in their investment portfolios, 23% already integrate socially responsible investments and 41% are considering it in the short term. Only 19% cover Green Bonds and 35% do not consider it a priority.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

 

Showroom

Goodwin Submersible Pumps Africa (Pty) Ltd
Goodwin Submersible Pumps Africa (Pty) Ltd

Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.

VISIT SHOWROOM 
Victaulic
Victaulic

Since 1919, Victaulic’s innovative solutions and design services continue to increase construction productivity and reduce risk, ensuring projects...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 21 June 2024
Magazine round up | 21 June 2024
21st June 2024
Corobrik sets out plans for its Rietvlei operations
Corobrik sets out plans for its Rietvlei operations
19th June 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.3 0.353s - 144pq - 2rq
Subscribe Now