How traditional financial institutions can thrive, survive in today’s fast-paced marketplace – ACAMB President
The President of the Association of Corporate Affairs Managers of Banks (ACAMB), a body of Communication and Marketing Professionals in Nigerian Banks, Rasheed Bolarinwa has challenged traditional financial institutions to rise up to the technological advancements in the market place if indeed they want to remain in business.
Bolarinwa gave the charge at the second edition of ACAMB’s National Stakeholders Conference held on Thursday, August 17, 2023 at the Bankers House in Victoria Island, Lagos.
The conference themed: “Marketing Financial Services in Dynamic Times” had in attendance Lead Partner CMC Connect and immediate past President of the African Public Relations Association (ARPA), Yomi Badejo-Okusanya as keynote speaker; Nigerian advertising and music executive, public advocate, founder of X3M Ideas, Steve Babaeko; insurance guru and Executive Director/Chief Operating Officer of Heirs Insurance, Tosin Bayo-Yusuf; founder of Ixzdore Laboratories Limited, James Agada. Other panelists include; Helen Ogboh, Group Head Manufacturing, Corporate Banking Directorate of First Bank of Nigeria Plc; Tolulope Ogundipe, Group Head, Banking Services, Premium Trust Bank; Dr. Sunnie Omeiza-Michael, Director, Lagos Chamber of Commerce and Industry (LCCI).
“The theme of this year’s conference underscores the dynamism of the times we live in and the impact on the financial services industry. Among the key indicators of these dynamics times are macroeconomic headwinds that are redefining the financial market as well as other markets across board. Rising inflationary trend, purchasing power parity and supply shocks occasioned by forex scarcity have had a significant impact on production and ability of people to save money and invest,” Bolarinwa stated in his opening address.
Speaking on digitilisation in financial services sector and why traditional financial institution must not be caught unawares, the ACAMB boss said: “Digitalisation is also a major trend that is rapidly disrupting the general ecosystem including the financial services sector. Consumer/customer behaviour is being altered as the mode of buying and selling shifts from the brick-and-mortal traditional mode to online purchases, while fostering increasing adoption of digital payment systems. It is not just that; demand for safer, faster and cost-efficient services is also getting higher as consumers become more sophisticated while competition also gets fiercer by the day. As good news as this seems to be, for us as financial services providers, the rate at which fintechs and neo-banks have, and continue to transform the finance industry, is a wake-up call for the traditional financial institutions to keep up with latest innovations in order to succeed and thrive. Part of the imperative of these dynamic times is the demand on us in the industry to embrace innovation, adaptation, and agility if we must remain relevant in today’s marketplace.”
Financial institutions must rebuild customer trust – Yomi Badejo-Okusanya
Meanwhile, the Lead Partner, CMC Connect LLP, Yomi Badejo-Okunsanya who was guest speaker at the conference urged financial institutions to rebuild customer trust by finding new ways to meet their needs.
According to him, recent study revealed that only 39 percent of Nigerians trust their banks in contrast to the global average of 56 percent.
Badejo-Okusanya said: “This lack of trust impedes financial inclusion and digital service adaptation.
“When you are promoting your product, you make it look easy in the promotion, but when I get there, you make it very difficult.”
He urged the banks to know their customers and market, adding that the era of mass marketing was gone.
He said: “In those days when you wanted to sell financial products, you just put a couple of pretty girls in a sweet looking car and sometimes the higher their skirt line, the better, but you cannot do that anymore.
“A customer has become so aware.
“The issues of corporate governance does not allow that anymore.
“And also: How many banks were there in those days compared to how many they are now?
“So, competition is key.”
He also advised financial institutions and other industries to create a strong and active research and development unit in order to succeed.
Badejo-Okunsanya noted that institutions were not investing enough in research and service.
He added that innovation and digital revolution was one of the most significant effects of the digital evolution in finance, urging banks to democratise financial services, among others.
