By BUUMBA CHIMBULU
THE outbreak of Covid-19 pandemic has accelerated the growth of digital banking in Africa, with Standard Chartered Bank experiencing an increase in its customer base by half a million.
This represents 50 per cent of its legacy base, since the onset of the Covid-19 pandemic, Standard Chartered Bank chief executive officer for Africa and Middle East, Sunil Kaushal said.
Mr Kaushal said digital banks have allowed the bank to attract a new audience of future ready consumers, comprising a younger, digital savvy demographic, with more than two-thirds of accounts by consumers below the age of 35.
He pointed out women represented a much larger share than normal.
“The pandemic, rather than becoming a stumbling block, accelerated the growth, with Standard Chartered experiencing an increase in its customer base by half a million, representing 50 percent of its legacy base, since the onset of the pandemic,” Mr Kaushal said in his Opinion (Op-Ed).
He said this digital banking platform was showing early signs of transforming the wealth culture in Africa, by demystifying and bringing small-ticket investment and insurance offerings within the reach of the regular customer across the continent.
Mr Kaushal said the bank had witnessed a 250 per cent increase in wealth management transactions booked when COVID-19 first hit the African markets.
“The Covid-19 pandemic, by stripping us of in-person interactions, has possibly pushed financial services in Africa into a ‘Goldilocks moment’.
“This transformation, wherein the combination of technology, platforms and customer demographics are taking place, can result in an explosive growth and lift financial participation, especially by providing
equitable access to quality financial services,” he said.
Mr Kaushal said this also boasts a significant opportunity to promote greater gender equity in the financial sector and connect small businesses to local and regional hubs, possibly even to international
markets.
After successfully piloting a digital bank in Côte d’Ivoire in 2018, Standard Chartered rolled out digital banking platforms across eight additional key African markets, including Uganda, Tanzania, Ghana, Kenya, Botswana, Zambia, Zimbabwe and Nigeria.
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