Sumesh Rahavendra, Vice President of Sales for DHL Express Sub Saharan Africa.
The
African financial services industry is rapidly evolving as a result of
advancing technology which is fueling innovation and growth in the
sector. While the sector is mature in most developed countries, it is
less saturated in Africa, therefore offering many opportunities for new
market entrants to challenge the status quo of how business has
traditionally been conducted.
This is according to Sumesh Rahavendra, Vice President of Sales for DHL Express Sub Saharan Africa (http://www.dpdhl.com)
who adds, “The burgeoning middle class and abundance of SMEs in Africa
present great opportunities for financial services companies to provide
retail banking services to individuals, as well as trade finance to
SMEs. We see SMEs as the engine for growth in Africa and the lack of
access to finance can often hinder their development. With one of the
fastest growing middle classes in the world, there is a wave of
consumerism for all types of goods and services such as FMCG,
electronics and pharmaceuticals.”
The
future shape of financial services in Africa 2015(1) report by PwC
describes the sector as a marketplace without boundaries. It explains
that compared to global markets – where the outlook for financial
services is more solid – the risk of disruption in traditional African
financial services market has triggered the need for entities to
reassess their strategies.
“While
most international banks are moving towards e-commerce, in Africa, a
number of local banks still share information and conduct business with
hard copy documentation,” adds Rahavendra.
An
Accenture report titled African financial services come of age(2),
suggests a promising future for the region’s banking sector. It reveals
that the development of consumer payment networks took years to become
fully functional in mature economies, while many countries in Africa are
now beginning to expand their traditional payments infrastructure to
adapt to new international standards.
“The
local retail banking sector is increasingly making use of new
technology such as ‘Mobile Money’ platforms. Consumers have started to
move away from physical cards, instead relying on their mobile phones to
conduct day-to-day banking transactions.”
“In
addition to mobile money solutions, most African countries have made a
concerted effort to improve their transactional security by moving from
the traditional ‘swipe card’ form of retail banking to chip and pin.”
“From
a logistics point of view, while banking sector documents continue to
present significant shipment volumes intra-Africa, with the new
technologies available, there is an increased need for equipment such as
servers, ATMs and supplies to be moved into and around the continent,
as banks expand into new countries and rural areas. As technology and
requirements change, so do our supply chains, and we work very closely
with our customers to ensure that we offer them the best possible
solutions.”
“The
financial sector fueled DHL’s expansion into Africa in 1978 when global
banks needed to get documentation to Africa, and it continues to help
shape our service offerings on the continent as the sector matures. As
the only logistics company to be present in every country and territory
in Africa, we not only have front row seats to witness the impressive
growth of the sector, but are fortunate enough to work with some of the
largest and emerging financial institutions on the continent and play
our part in their growth story,” concludes Rahavendra.
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