Agenda | Apr 03,2021
December 7 , 2019
By Asseged G. Medhin ( Asseged G.Medhin, deputy CEO of Global Insurance Company. )
The challenge the financial system is faced with in the 21st Century is the challenge of all time. There are streams of customers who come to our doors today who have extensive product knowledge and demand the utmost service. The form of capital structure has totally shifted with risk regulation models. One can argue that no known and acceptable model remains on the shelf of software developers for more than a year. The global world has already set the critical path that urges all financial sectors of the world to move fast or wither away.
The only way to meet this demand is through the use of financial technology, or fintech, which combines financial products with technology to meet the high demand of customer service today. Fintech enables the sector to compete, enable and collaborate with financial institutions globally.
In this global village any financial institution has to play positively, wisely, ethically and with knowledge-based prescience. Without these, it would remain a museum of past successes. All their experiences would not keep them from becoming dinosaurs.
This is a new business era with new ways of doing things. From simple automation to bigger strategies, the degree of flexibility is important. We are facing a unique business environment. In this one global village we need to have a bigger appetite, a larger strategy, a higher rate of return and extensive knowledge of the business at hand. Fintech is an inevitable fact and a survival mechanism for today’s financial industry.
Fintech is mandatory due to the fact that it enables financial institutions to fulfill customer demands and offer innovative, effective and cost-efficient technologies when compared to their traditional counterparts.
When I argue that the Ethiopian financial system needs to modernise, I mean to say that action should be taken now. Or it will be too late. The Ethiopian economy has already been challenged by the global trend to innovate and use financial technology to transact business across boarders. Even though Ethiopia is favored by its location and size to be a part of this revolution, it has not kept pace so far.
We need to think out of the box now and allocate all required resources to use fintech to integrate with regional and global markets in financial services provision. We should take advantage of the new economic policy the country is following. The rationale behind fintech is not only modernisation, but it is also proper market positioning and changing the structure of capital and investment.
When firms modernise, it means they are increasing collaboration between business-to-business frameworks and financial institutions act as clients, backers or partners to a fintech enterprise.
The process of doing business is achieved through purchasing, investing or co-developing fintech products and services and possibly offering them directly to the market. Any customer at any place at any time could buy any financial product or service at a favorable price under convenient conditions.
We know how much simpler automation makes the sales process for customers. Mobile banking and electronic transfers help customers reach their business targets with stunning speed.
In contrast insurance transactions and claims management in Ethiopia still remains archaic across the industry. The economic challenges are getting tough by the day. Only the wise ones that strategize soundly will survive to tell the story of how the archaic dinosaurs that refused to adopt fintech went extinct.
Different sectors of the government are going to be changed technologically with the aid of the fresh political ideology and direction of the government. Abiy’s administration is moving faster than we expected. We are heading to the era of electronic identity cards, registration of voters and elections will be forever changed. Donor groups and financiers are changing their criteria based on technological methodologies. These imply that the overall political framework of the country is changing, which eventually gives room to the financial sector to embrace technology to take advantage of an economic environment that is more business friendly.
As Ethiopia is expected to be integrated to the regional economy in the upcoming decade, this should be started through the use of technology now. To this end, the country's financial sector players should build their technological capacity to be competitive in the regional market.
Financial technology, adequacy of capital, risk regulation and knowledge-based services have become the next challenge since Ethiopia is required to open up the financial sector to the world at large. The focus of developmental integration is meant to be more liberal and is faster than expected. The financial sector needs to revise its strategy accordingly. Though it is the toughest job, the return is high as well.
PUBLISHED ON Dec 07,2019 [ VOL 20 , NO 1023]
Agenda | Apr 03,2021
Editorial | Apr 26,2019
Fortune News | Mar 23,2019
Fortune News | Aug 22,2020
Fortune News | Sep 08,2019
Commentaries | Dec 04,2020
Viewpoints | May 01,2020
Commentaries | May 31,2020
Fortune News | Mar 14,2020
Viewpoints | Jun 07,2020
Fortune News | 37039 Views | Jul 18,2020
Fortune News | 16451 Views | Oct 12,2019
Exclusive Interviews | 15257 Views | Aug 10,2019
Fortune News | 15239 Views | Mar 19,2020
March 27 , 2021 . By BAMLAK FIKADU
An application developer who has recently taken up hiking to get some exercise, Migno...
February 13 , 2021 . By TADESSE TSEGAYE
In Arada, I stopped over by a hotel in front of Cinema Empire. I sat alone inside wit...
January 30 , 2021 . By FASIKA TADESSE
The Council of Ministers approved a regulation that will establish the Liability &...
January 16 , 2021
It was a sunny day on September 12, 1974. A machine gun mounted on top of a tank was...
Economic and political development go hand in hand with a good educational system. Th...
Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...
When the country’s most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or tw...
April 10 , 2021
It is not often the case for regional states' leaders to swallow their vanity and dec...
April 3 , 2021
As an Auditor General, he was not the most conspicous of officials in the mainstream...
March 27 , 2021
In an unprecedented turn of irony, just as Ethiopia began an attempt to open up to th...
March 20 , 2021
There is never a dull moment in the tense and combative relationship between regulato...
PM Abiy Ahmed (PhD) at a Gala Dinner Called for the Awarding of the Félix Houphouët-Boigny Peace Prize
May 6 , 2019
Do not judge a book by its cover, we say. But we still judge all the same. It is much worse when it comes to a living, breathing person. We...
April 10 , 2021
Jemal Ahmed (left), CEO of MIDROC Investment Group, hands Adanech Abiebie (centre), deputy mayor of Addis Abeba, the city that is home to a...
April 10 , 2021 . By NEJAT AHMED
Ethiopia is spending 27.2 billion Br (over 660 million dollars in the current exchange rate) on importing...
Companies operating in the country's industrial parks have raised concerns with the central bank's recent...
April 10 , 2021 . By NEJAT AHMED
Half-a-dozen private higher learning institutions have been subject to regulatory action from the federal...
Or see contact page