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The World’s Best Banks: The Future Of Banking Is Digital After Coronavirus

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When Citigroup opened 2020, the most ambitious projects at the $2.2 trillion in assets lender involved major partnerships with technology companies best known for their internet, social media and ecommerce platforms. 

In China, nearly 70% of the payments that Citigroup handles for customers are done through AliPay, the payments business spawned by Alibaba. Citigroup’s digital payments technologies are also present on other popular social messaging platforms like LINE and WeChat. The mega-lender recently launched a credit card partnership with fintech Paytm in India and in Singapore it uses chatbots on Facebook Messenger to help answer customer service inquiries. In November 2019, the bank made a big splash in the United States by unveiling a digital checking account with Google Pay.

These partnerships are part of a new reality for the banking industry’s most important players like Citigroup: Innovative and seamless digital banking capabilities are paramount in a business where basic financial products have become commoditized and rock-bottom interest rates make it hard for lenders to differentiate. Consumers are instead voting with their smartphones, demanding the ability to conduct their financial activities safely and easily on mobile phones and their desktops.

Never were these growing demands more important than during the coronavirus pandemic, which forced countries around the world to announce lockdowns to combat the spread of the virus. Unable to visit bank branches, consumers turned to mobile apps and online services to get transactions done. In the U.S., Citi saw an 84% increase in daily mobile check deposits in May and a tenfold surge in activity on Apple Pay as quarantined customers used digital and contact-less tools to handle their financial activities. The lender’s Mexican operations saw an 80% increase in mobile app logins in March. Downloads of its mobile app surged 116% from February to April, while digital bill payments rose 78%. 

“Banking has changed irrevocably as a result of the pandemic. The pivot to digital has been supercharged,” says Jane Fraser, president of Citigroup and CEO of its gigantic consumer bank. “We believe we have the model of the future – a light branch footprint, seamless digital capabilities and a network of partners that expand our reach to hundreds of millions of customers.”

Citi’s increasingly digital approach is visibly evident in Forbes’ second ranking of the World’s Best Banks, based largely on customer satisfaction surveys. Citi rates highly in six of the 23 countries where customers were surveyed (Citi has retail operations in 19 countries).

Forbes partnered with market research firm Statista to measure the best banks in nearly two dozen countries. Statista surveyed more than 40,000 customers around the globe for their opinions on their current and former banking relationships. The banks were rated on overall recommendation and satisfaction, as well as five subdimensions (trust, terms and conditions, customer services, digital services and financial advice). Between 5 and 75 banks were identified as top banks in each country, based on the total evaluations collected, the number of banks in the specific country and the scores achieved.

The 2008 financial crisis didn’t just usher in an era of consolidation and low rates that reshaped the banking industry globally, it also coincided with the mass adoption of the smartphone and a shift to digital banking. In the wake, a crop of web-first lenders emerged to challenge the world’s biggest banks and made offering end-to-end mobile banking features a matter of survival. The coronavirus only affirmed that there’s no looking back.

Amsterdam-based ING, ranked highly in eight nations, leading banks worldwide on our list in its reach. The lender, which has a legacy that dates back to the mid-1800s, is a technological pioneer in the banking industry, creating digital bank ING Direct in 1997 at the dawn of the internet age. While ING operates hundreds of bank branches in the Netherlands and Poland, it is known as an entirely web-based bank in markets like Australia, Germany and Spain where it ranks in the top-five. 

ING now handles some 4.5 billion digital contacts a year, according to Aris Bogdaneris, head of challengers and growth markets at ING, and it is embarking on an effort to make its digital services uniform worldwide. “We are inspired by the giant technology platforms and their customer engagement,” says Bogdaneris, who points out that user experiences for technology platforms like Uber are the same, regardless of where a customer is located. “We started measuring ourselves more against these platforms than against traditional banks,” he adds.

Now, with Covid-19 affirming most digital banking trends, Bogdaneris wonders whether ING will go all-digital. Says Bogdaneris, “Where we have physical distribution and literally closed branches, [the question is] do we reopen them again? Do we actually need them?”

The other banks that rated highly in more than five regions include HSBC and Santander at six apiece, and digital bank N26, which rated first in Austria and Italy second in Spain and France, and #29 in Germany. Founded in 2013, N26 stands out because it has no physical branches but offers free ATM withdrawals worldwide and recently raised $270 million as part of a Series D round that valued the firm at $3.5 billion. 

Digital upstart Nubank is the top-rated bank in Brazil, beating out an oligopoly of legacy banks on our list. “The penetration of the internet and the penetration of smartphones created a window of opportunity for us,” says founder and CEO David Velez. “Even as a startup we could compete head-to-head with the big banks. Suddenly, you didn’t need billions of dollars to build bank branches and you didn’t need hundreds of millions of dollars to buy mainframes from IBM. You could use the internet to acquire customers,” adds Velez, “It enables a model that has fundamentally lower costs and a better user experience.”

Growth at Nubank, which operates throughout South America, has been staggering. In 2019, the lender saw its customers surge from 6 million to 20 million and its private valuation now stands at $10 billion.

If there’s any doubt that digital-first banks are the way forward, Velez offers a surprising statistic: Since the pandemic began, Nubank has seen a surge in customers aged sixty and over, the types of clients many bankers once believed would never leave traditional branch networks. Over the past 30-days, for instance, some 300 clients above the age of 90 have become Nubank customers.

Digital banks rated well in the United States as well. Online-only Discover and Capital One ranked #23 and #30, while neobank Chime ranked #36. All three beat out mega-lenders JPMorgan Chase, #36 and Citigroup #71. The other big four lenders, Bank of America and Wells Fargo, didn’t make the top-75.

USAA was the highest-rated bank in the U.S. The bank is open to members of the U.S. military and their families and has more than 13 million members.

Antoine Gara, Forbes Staff, Banking & Insurance

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Op-Ed: From Cashless To Digital: The Covid-19 Tipping Point

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People’s safety concerns about transmission through contact has resulted in Covid-19 becoming a catalyst for the adoption of cashless payments globally and even more so in South Africa, with the disruption expected to effect lasting changes in the way people transact with cards and cash.  

While consumers had already begun to embrace digital payment options prior to the pandemic, the health crisis is rapidly accelerating the adoption rate with more consumers seeking safer, contact-free payment methods.

This rapid adoption of digital payments will help shape a new normal as businesses begin to emerge from the more stringent levels of lockdown regulations and attempt to navigate their post-Covid-19 futures.

Derek Cikes, Commercial Director at Payflex, says the pandemic represents a watershed for the payments industry.

“The acceleration towards a cashless society is one of the key opportunities that has emerged from the pandemic, bringing the advantages of digital payments  to the fore including lower fees,  convenience, seamless delivery, greater security, and more flexible payment options,” says Cikes who adds that what makes this trend so interesting, is that historically, people used to hoard cash in times of crisis. Now, the opposite is occurring.

A study by MasterCard revealed that since the beginning of Covid-19 in South Africa, 89 percent of South African respondents have been using contactless methods to pay for groceries, 60 percent for pharmaceutical items, 39 percent for other retail items, 15 percent for fast food, and eight percent for transport.

Similarly, recent figures from Bain echo this, with estimates that by 2025, the adoption of digital payments could accelerate by a 5 – 10 percentage point increase globally, above what was previously anticipated at 57% before Covid-19 to 67% after Covid-19.   

Are contactless payments here to stay?

Cash is perceived as a vehicle for the transmission of the virus. As stores, restaurants and other merchants begin to open their doors again, contactless payments are key in providing consumers with a much-needed sense of comfort and reassurance.


“Businesses have no option but to rethink their use of shared payment surfaces, with customers more conscious than ever of what they touch. People don’t want to touch ATM or PIN pads or have to hand their cards to store tellers.  Once viewed as a convenience or nice-to-have, digital payments are now viewed as a critical service, providing a solution to limiting contact with other surfaces,” says Cikes.

Creation of new payment habits

From banking facilities like tap-to-pay, payment apps such as Zapper and Snapscan, to digital banking and e-wallet providers, South African fintech firms have reported significant increases in the use and adoption of digital payment methods since the outbreak began in March. The simple truth is, while these channels provide a convenient way of paying, they are also contactless, allowing consumers to pay for their goods while not having to exchange cash or cards with merchants.

“The perception of cards and cash as vehicles for transferring microorganisms has changed how people physically interact with their payments in favour of contactless options. With health and safety being top priorities, we anticipate this trend to become more permanent with hygiene measures and social distancing likely to become part and parcel of our daily realities for years to come,” says Cikes.

Retailers drive adoption of digital payments

Both online and brick and mortar retailers are helping to accelerate this trend with stores like Mr Price enabling consumers a contactless way to pay in-store pay via their app, and most South African retailers offering tap-to-pay-methods. There is also an expected uptick in omnichannel capabilities (being able to sell your goods through many channels such as website, app, retail, third-party platforms such as Amazon or Shopify) which bridges payments in any environment, physical or digital.

Another contactless payment method driving this trend is e-wallets with over 500 million mobile money users expected on the continent in 2020. In addition, it is anticipated that the capabilities of digital wallets will expand to offer features such as digital IDs and transaction monitoring and reporting, which is expected to create even more growth for this payment mechanism.


Flexibility needed more than ever

According to TransUnion’s Financial Hardship Survey, conducted in the United States, United Kingdom, Canada, India, Hong Kong and South Africa, one in six people lost their job in early May, with defaulting on their bills just seven weeks away. 82% of consumers indicated their household income had been impacted, and on average, consumers who were impacted, expect they will be short by R 7 542.90 when paying bills or loans.

“Many people are financially stretched and need the support of alternative payment solutions to help manage their cash flow without incurring further credit card debt,” says Cikes.

A report by GlobalWebIndex shows that 83% of South African consumers are expecting flexible payment options from brands.

“We have seen this play out in the increased uptake of our Payflex Buy Now Pay Later payment solution, which allows people to make interest-free payments over two paychecks,” says Cikes.

With health, safety and financial security at the forefront of consumer sentiments, companies will need to provide payment options which meet these consumer needs.

“Digital payment solutions provide an avenue which safeguards against physical interaction, enabling both consumers and business to navigate the environment as the economy is restarted.  These digital adoptions will not only help manage the current situation but will also have far-reaching benefits, facilitating a more customer-centric, efficient and resilient economy,” concludes Cikes.

-Derek Cikes, Commercial Director, Payflex

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Here’s What The Racial Wealth Gap In America Looks Like Today

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Nationwide protests following the death of George Floyd have thrown issues of economic inequality, already exasperated by the coronavirus crisis, into sharp relief. The wealth gap in America has been growing since at least the 1970s as income levels stagnated for lower and middle class households while continuing to grow for households at the top of the spectrum. 

Centuries of racism and discrimination mean that this divide is a great deal wider for black households that are denied the access to the opportunities and resources available to white households. “No progress has been made in reducing income and wealth inequalities between black and white households over the past 70 years,” according to economists Moritz Kuhn, Moritz Schularick and Ulrike I. Steins who published a 2018 paper on U.S. incomes and wealth since 1949. The Brookings Institution points out that the ratio of white family wealth to black family wealth is higher today that it was at the beginning of the century. 

Here are 9 numbers that sum up the vast gap.

16.8%

That’s the May 2020 jobless rate for black workers. During the same month, white workers were unemployed at a rate of 12.4%. Less than half of black adults currently have a job, compared with just under 60% prior to the beginning of the pandemic layoffs in February. The sobering statistic comes after unemployment rates for black workers reached a record low in the months before the pandemic.

$17,150

That was the median net worth of black households in 2016, according to the Federal Reserve’s Survey of Consumer Finances, the Brookings Institution notes. The median net worth of a white family at the same time was $171,000—nearly ten times as much.

8.7%

The Washington Post points out that in 1968, the median black household had just 9.4% of the wealth of the median white household, according to Fed data. Yet by 2016, that ratio had fallen to just 8.7%. In other words, the wealth divide actually widened a bit over nearly a half century of what is commonly thought of as progress for African-Americans. 

44.3%

That’s how much the median net worth of black families fell between 2007 and 2013, reflecting lingering damage from the Great Recession. White families experienced a smaller, though still substantial, drop in median net worth of 26%. 

40%

That’s how much less likely black families are to own their homes than white families, according to the Census Bureau. 

28%

That’s the portion of black homeowners who didn’t pay or deferred their mortgage payment in May, during the depths of the covid-19 crisis, compared with just 9% for white homeowners, according to the Urban Institute’s analysis of the Census Bureau’s Household Pulse Survey . 

36%

That’s the percentage of black respondents who said they had money in the stock market, according to a 2017 Gallup poll. The rate was 60% for white respondents. Investing in the stock market is one of many ways families compound their wealth. 

46%

According to a study from Boston College’s Center for Retirement research, the typical black household had just 46% of the retirement wealth of a typical white household in 2016. The study notes that the gap would be much larger if it weren’t for the value of Social Security benefits households have earned and are expected to receive.

2 out of 5

That’s the share of black small businesses that were forced to close down in April because of the pandemic, according to University of California, Santa Cruz economist Robert Fairlie. Among white businesses, just 1 out of 5 was forced to close.

Sarah Hansen, Forbes Staff, Markets

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Covid-19: Beyond The Lockdown: What Big Business Is Doing Now

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Corporate Africa has to urgently pandemic-proof itself with new ideas, innovations and emotions, to merely stay alive fighting a marauding virus.


The verdant vineyards of Stellenbosch, a charming wine town in South Africa’s Western Cape province, offer breath-taking, panoramic views of the rolling hills, valleys and mountain ranges fringing them.

Only that there are no tourists to marvel at them now – and perhaps will not be for a long time to come.

Like good wine, these views will stay but who will savor them? 

Like every other industry on the planet, South Africa’s wine industry too, which produces some of the finest wines and spirits globally and employs millions in its tourism collaterals, has been severely impacted by the Covid-19 pandemic.  

Even with the President Cyril Ramaphosa (whose leadership at this time was commended by world leaders and media) easing lockdown restrictions to Level 4 on May 1, liquor and wine sales are prohibited, and the big players say the local industry has taken a hit.

Michael Jordaan, Former banking CEO and wine entrepreneur

Former banking CEO and wine entrepreneur Michael Jordaan speaks about the effects the crisis has had on business.

“Local sales represent 50% of industry turnover,” says Jordaan. The export ban was lifted five weeks after the lockdown but by then, he feels “precious sales and rack space” in export markets were lost to foreign competitors. “Related wine businesses such as wine tourism or restaurants are suffering the most as income has gone to zero while many costs remain.”

The wine industry is already a high-cost, low-margin business, he adds, with industry surveys showing that only 28% of wine grape producers made a profit in 2019.

Most wineries were cash-strapped to start with, and the pandemic has left a bitter after-taste.

“It is inevitable that many of the 290,000 jobs in the industry will be lost…” he says.

Premium wine houses are now looking at offbeat ways to sell and deliver online.

Jordaan’s Bartinney Wines – in the Jordaan family since 1953 – is produced from a 28-hectare farm in Stellenbosch, and he says he has made it a priority to look after staff using savings and income from non-wine businesses.

“We’re also exploring new export markets but struggle as this usually requires trips to sellers which are obviously not possible,” he adds.

The wine-drinking wealthy across the continent are also not immune to the crisis. Some South African billionaires, listed by Forbes every year, made announcements to help fight Covid-19 even before the government announced the lockdown.

Billionaire Johann Rupert and family, worth $4.6 billion (as of mid-May according to Forbes), announced R1 billion ($54.73 million) through the Sukuma Relief Programme “consisting of grants and low-interest bearing loans with a 12-month repayment holiday, given to formal sole properties, closed corporations, companies and trusts”. On April 6, the program closed the application platform on account of the overwhelming response. Ben Bierman, administrator of the program, told CNBC Africa the relief program received applications in excess of R2.8 billion ($153 million). Nicky Oppenheimer and family, worth $7.5 billion (as of mid-May according to Forbes), made two contributions towards Covid-19 relief. The first made by Nicky and son Jonathan, pledging R1 billion ($54.73 million) to the South African Future Trust (SAFT). Following in her brother Nicky’s footsteps, the second pledge came from Mary Oppenheimer-Slack and her daughters who pledged R1 billion ($54.73 million) to the state’s Solidarity Fund, stating it’s “most aligned to our concerns about basic needs, food, medicine, general care and gender abuse”.

The Motsepe family pledged another R1 billion ($54.73 million) to the country’s coronavirus Solidarity Fund and said the pandemic has shifted the priorities of the Motsepe Foundation. The Founder and Chairman of the foundation, Patrice Motsepe, with a net worth of $1.5 billion (as of mid-May as per Forbes), said: “The Motsepe family and companies we are associated with, will continue to do everything possible to assist health workers, poor rural and urban communities and all South Africans to prevail over the current coronavirus pandemic.”

Other established South African businessmen such as Douw Steyn and family pledged R320 million ($17.5 million) through the Douw Steyn Family Trust. 

Globally, tech billionaires such as Jack Dorsey, CEO of Twitter, worth $4.7 billion, announced on April 7 that he was moving $1 billion of his Square stock to support various causes including Covid-19 relief efforts. The tech billionaire didn’t specify how much of the $1 billion donation would be going towards the pandemic.

Chinese billionaire and Alibaba co-founder Jack Ma donated protective equipment to all 54 countries in Africa through his Jack Ma Foundation and Alibaba Foundation. The donation includes a total of 1.1 million test kits, six million masks and 60,000 protective suits.

Global tech billionaire Bill Gates and his wife Melinda committed more than $250 million through their foundation. According to Forbes, much of it will be spent on vaccines, treatment and diagnostic development.


“Covid-19 has essentially become a catalyst for the shift which was bound to happen,”

– Sipho Maseko, CEO, Telkom Group

Whilst the big dollar signs bring hope, the numbers for Covid-19 continue to bring gloom as worldwide statistics rise.

At the time of going to press, the number of cases globally was over five million, with the death toll over 325,000. So far, almost two million worldwide have made recoveries. Africa has over 90,000 cases, with 2,900 deaths and over 35,000 recoveries.

But the big global bodies overseeing the crisis say the world’s youngest continent, Africa, may suffer heavily if the disease is not contained.

The World Health Organization said in a statement released early May that “83,000 to 190,000 people in Africa could die of Covid-19 and 29 million to 44 million could get infected in the first year of the pandemic if containment measures fail” as per a new study based on prediction modeling, looking at 47 countries in the WHO African region with a total population of one billion.

According to the International Monetary Fund (IMF), “sub-Saharan Africa is facing an unprecedented health and economic crisis that threatens to throw the region off its stride, reversing the development progress of recent years and slow the region’s growth prospects in the years to come”. It predicts the region’s GDP to contract by 1.6% this year, making it the worst forecast on record.

On its part, the African Development Bank (AfDB), led by president Akinwumi Adesina, is supporting the continent through the Covid-19 crisis with $26 million for the Africa Centers for Disease Control and Prevention, for the procurement of critical medical supplies. The bank also launched a $3 billion ‘Fight Covid-19’ social bond, with bids exceeding $4.6 billion. It also launched a $10 billion Crisis Response Facility to support Africa to address the pandemic.

Gary Booysen, Director and Portfolio Manager at Rand Swiss

Because Africa’s financial markets are less developed than many of its global counterparts, Gary Booysen, Director and Portfolio Manager at Rand Swiss based in Johannesburg, says: “They often struggle with liquidity. As the world grapples with the economic fallout of the lockdowns and Covid-19, risk appetite will almost certainly diminish. This will likely see money initially flowing out of more speculative frontier markets. This, in turn, could potentially result in undue pressure being placed on African financial assets.”

With these forecasts, what is the way forward? Corporate Africa is grappling with the hard reality and is in the process of re-strategizing itself. The only hope is if big businesses realize that they have to not just come up with forward-thinking views but also unlock much-needed solutions and even their balance sheets to help all in these times of uncertainty.

And technology and interconnectedness should be the forces driving these collaborations.

Makhtar Diop, the World Bank’s Vice President for Infrastructure, states on the bank’s website: “Governments, regulators and the telecom industry must do all it takes to deploy affordable, reliable, and safe digital technologies… to work together to achieve the promise of new technologies for all and keep the world connected.”

Shameel Joosub, chief executive officer of Vodacom Group Ltd., poses for a photograph following an interview at Vodacom World in Johannesburg, South Africa, on Monday, May 16, 2016. Vodacom, Africa’s largest wireless operator by market value, raised three-year targets for revenue and earnings as rising investment in its network delivers growth in South Africa and international markets. Photographer: Waldo Swiegers/Bloomberg via Getty Images

On their part, telecom companies such as Vodacom have stepped up. Shameel Joosub, CEO of Vodacom Group Limited, says it plans to donate 20,000 smartphones, 100 terabytes of data and 10 million voice call minutes to South Africa’s National Department of Health to collect and transmit data in real time for resource planning purposes as the government accelerates its Covid-19 testing campaign. Vodacom recently entered into a partnership with Discovery Health to offer free virtual consultations with doctors for the general public. The telecoms company has experienced a significant increase in fixed and mobile network traffic since the lockdown, attests Joosub. As a result, Vodacom has accelerated its investment spend.

“As the world becomes more online and more digital, it would make fiber and 4G-investment ready for that. This has always informed our investment strategy. Covid-19 has essentially become a catalyst for the shift which was bound to happen,” says Sipho Maseko, CEO of Telkom Group, to FORBES AFRICA. The telecom provider delivered a tracking and tracing system for Covid-19, “in record time”, working with the National Institute for Communicable Diseases (NICD) and the Council for Scientific and Industrial Research (CSIR) in South Africa. Maseko believes that as big businesses face an economy and society that has been changed fundamentally by Covid-19, they will need to find innovative ways to adapt, deliver services, and drive growth in a challenging economic period.


“Tech innovators will find business opportunities in the difficulty,”

Darlene Menzies, CEO, Finfind

Megan Pydigadu, Group Chief Financial Officer of EOH

Megan Pydigadu, Group Chief Financial Officer of EOH, a technology services provider in Africa, believes the company is systemic to South Africa’s IT backbone, and as a result, creates significant responsibility for the company as an organization during the pandemic.

“We have implemented short and medium-term cash flow forecasting which pre-warns us of anything we need to deal with,” says Pydigadu. On potential opportunities and trends coming out of the industry, Pydigadu believes that EOH needs to develop product solutions that will last beyond the company’s current circumstances.

“The ‘new normal’ is here to stay and is going to change the ways of working. There will be an increased need for virtualization and the effective use of information, AI and data to reduce costs as we face an ongoing recession in the medium-term,” says Pydigadu. The CFO says the company is looking at opportunities to accelerate digital transformation for its clients.

As companies continue to look for solutions, one thing is crystal clear.

Corporate Africa is reiterating the need to future-proof businesses through new innovations – and they have to act now.

For years, the question of whether businesses are prepared for the fourth industrial revolution (4IR) has been posed. The pandemic has no doubt now answered that question. Perhaps what we need to ask is how quickly companies must now adapt to 4IR.

Darlene Menzies, CEO of Finfind

Darlene Menzies, CEO of Finfind, an online finance solution platform that brings together the providers and seekers of SME finance, believes online businesses will thrive as traditional forms of business grind to a halt.

“Tech innovators will find business opportunities in the difficulty, and we will see many new businesses birthed that provide solutions to address the gaps that this challenging time has presented,” says Menzies. She believes it’s important every business uses the lessons learned from the pandemic to ensure they are better prepared for any future disaster.

She reckons the world will see a lot of change with more firms deciding to move to a hybrid of virtual and physical work, and many transitioning to an entirely virtual operation. Menzies says the pandemic has also exposed the need to increase the accessibility of the digital economy to people at the base of the pyramid, in order to ensure that everyone can take full advantage of the benefits.

As the world finds itself at the mercy of the digital economy, perhaps more can be achieved through partnerships?

Kweku Bedu-Addo, CEO of Standard Chartered Bank in South & Southern Africa

Kweku Bedu-Addo, CEO of Standard Chartered Bank in South & Southern Africa, says the pivotal lesson during the pandemic has been the need for greater collaboration.

“It’s clear that we need better collaboration globally to be able to identify a developing crisis sooner, to enable the world to react faster to minimize the fallout,” says Bedu-Addo.

Speaking on digital technology, Bedu-Addo believes that many in the banking industry, and other industries, have had to quickly and safely expand access and capabilities in the area of technology.

“If it [digital technology] is fully integrated into a company’s strategy, it can benefit all employees and help businesses thrive in a time like this.” Standard Chartered has committed $1 billion of financing to support companies that provide goods and services to help in the fight against Covid-19. In addition, the bank has launched a $50 million global fund with donations from colleagues and the bank to provide assistance to communities affected by Covid-19.


“We have seen a 650% increase in alternate channelsin the last two weeks of March alone,”

– Robin Bairstow, CEO, I&M Bank Rwanda

Similar examples abound in the rest of the continent. In East Africa, more banks have responded to the pandemic.

Diane Karusisi, CEO, Bank of Kigali

The CEO of Rwanda’s largest commercial bank, Bank of Kigali, says the bank’s staff set up a fund to support the most vulnerable in Rwanda’s communities affected by the health crisis. “We have provided relief measures to our clients, waived various transaction fees as well as penalties for late payments. We have also designed loan products to support both retail and SME clients going through this difficult period,” Diane Karusisi tells FORBES AFRICA. The CEO’s forecasts for the medium-term are that economic growth will be significantly affected and all stakeholders will have to coordinate efforts to support speedy economic recovery.

“The Bank of Kigali’s excellent liquidity and capital position pre-Covid will allow us to weather the shock and remain a champion in financing the economy,” says Karusisi. On the opportunities she sees for the industry, she says that clients have had to shift their behavior toward digital channels, and cashless means of payment. For this reason, she believes digital transformation in the industry will be accelerated. Should the worst happen, Karusisi believes the bank’s most pessimistic stress tests show that it would withstand “a shock implying large business and retail defaults as a result of our strong capital position”. She adds: “Rwanda recovered from the war and the genocide against the Tutsi only 26 years ago. Our resilience has been tested and Bank of Kigali was the only bank to avail clients’ balances and savings after the tragic events…”

Robin Bairstow, CEO, I&M Bank Rwanda

Another bank in the country is I&M Bank Rwanda Limited. Robin Bairstow, the bank’s CEO, tells us its top priority during the pandemic is to maintain operations, protect the workforce, and keep customers safe and informed. Bairstow mentions the bank has anticipated changing customer needs, and has agreed to allow interest and principle deferrals for three months, and in some cases, longer for all affected customers. They have also reduced lending rates to provide support to clients. He believes that social distancing has given an opportunity for banks in terms of shifting customers to digital channels.

“We have seen a 650% increase in alternate channels in the last two weeks of March alone (when the lockdown began). If this trend continues, we would have changed behavior and the cost of serving customers will reduce in the industry and the momentum will continue due to the convenience of digital offerings,” says Bairstow.


“My team and I are trying to find or create new projectswhere we are able to work with people remotely,”

– DJ Fresh

In South Africa, internet group Naspers, one of the largest technology investors in the world, was one of the first, alongside the Ruperts and Oppenheimers, to announce funds for Covid-19 relief efforts. The company contributed R1.5 billion ($82 million) in emergency aid to the government’s response; of that, R500 million ($27.3 million) was allocated to the Solidarity Fund, and it’s buying R1 billion ($54.7 million) worth of personal protective equipment (PPE) and other medical supplies.

Phuti Mahanyele-Dabengwa, CEO of Naspers South Africa

In an interview with FORBES AFRICA, Naspers South Africa’s CEO, Phuti Mahanyele-Dabengwa, says: “We have a strong and liquid financial position to navigate uncertain times but we are not immune to the impact of Covid-19 and like all other businesses in the global economy.”

On the opportunities ahead, Mahanyele-Dabengwa believes in the longer term, Naspers’ payments and fintech business is expected to benefit across its markets from large sectoral trends, including more customers transacting online and more online transactions being executed through alternative forms of payment, instead of cash.

Moving to the travel and lifestyle sector, tourism has been hit the most. The International Air Transport Association (IATA) estimates that industry passenger revenues could plummet $252 billion or 44% below 2019’s figure for the world.

“Airlines need $200 billion in liquidity support simply to make it through. Some governments have already stepped forward, but many more need to follow suit,” says IATA’s Director General and CEO, Alexandre de Juniac, in a web statement.

Marc Wachsberger, Managing Director of The Capital Hotels & Apartments

In South Africa, Marc Wachsberger, Managing Director of The Capital Hotels & Apartments, a luxury hotel and apartment room provider that also offers conference venues and meeting spaces, believes travel will change dramatically in the future.

“As social distancing becomes the norm, hotel groups that will survive will be sure to go the extra mile in cleaning and sanitation protocols, while giving guests the room they need to maintain sufficient physical distance.”

With approval to operate during lockdown, Wachsberger says the company helped a few businesses to remain open during this time. It pivoted its business and implemented steps to offer safe spaces for guests and their staff, through ‘self-isolation hotels’ for anyone needing to isolate for approximately 14 days, or until they have been cleared; and ‘sanitized sanctuaries’ for families and corporates who want to live and work freely during this time. The company has partnered with Discovery Health in operating The Capital Empire in Sandton in the heart of Johannesburg as a Covid-19 isolation recovery facility called ‘The Get Well Hotel’. He adds that occupancy is expected to increase as more industries return to work and need to isolate or quarantine. He reckons hotels that can offer contactless check-ins, room access, check-outs and payments will be the way forward.

Wachsberger believes the meetings, incentives conferences and exhibitions (MICE) industry is feeling the ripple effect of the virus and will continue to struggle as business travelers stay away. Many venues will flounder as large meetings and gatherings can only possibly convene again in Level 1 of South Africa’s ‘risk-adjusted strategy’. 

Gareth Taylor, Country Manager for Bolt in South Africa

Another company steering itself for the future is Bolt. The app, formerly known as Taxify, offers services from ride-hailing to food delivery. Gareth Taylor, Country Manager for Bolt in South Africa, says the company now offers free sanitization liquid refills at all its driver centers on a daily basis.

The ride-hailing company has launched several new services to provide alternative ways for drivers to continue to earn an income. One such is the ‘Bolt Isolated Car’, featuring a physical barrier between the front and back seats, limiting the risk of exposure between drivers and passengers. Taylor says there will be a bigger focus on businesses connecting and assisting one another through partnerships.

“Businesses that can collaborate the most effectively and to the greatest mutual benefit, will win,” says Taylor. On the future of the transport industry, he says it is likely to evolve as electric vehicles become more available. “Electric vehicles are cheaper to run and maintain than petrol or diesel vehicles, which could in turn make transport more affordable, particularly for the more cash-strapped.” Taylor reckons that as more people and businesses have become accustomed to a work-from-home labor force, it’s likely that car ownership will decrease.

With the cancellation of movie premieres, concerts and big ticket events, those in the entertainment industry are also feeling the heat. And this includes actors and celebrities.

BEVERLY HILLS, CALIFORNIA – FEBRUARY 09: Gabrielle Union attends the 2020 Vanity Fair Oscar Party hosted by Radhika Jones at Wallis Annenberg Center for the Performing Arts on February 09, 2020 in Beverly Hills, California. (Photo by Frazer Harrison /2020 Getty Images)

In a recent Instagram Live session (which seems to be the order of the day), Hollywood actress Gabrielle Union told her fans that a number of black entertainers are grappling to pay their bills as they are getting fewer gigs during this crisis, and that “this stoppage of work and money is impacting marginalized ‘celebrities’ the most”.

Over the last few months, people working in the entertainment industry have had to look for other alternatives of making money.

DJ Fresh

Closer home, as a DJ who travels for shows around the world, Thato Sikwane, known as DJ Fresh, realizes that DJing is one of the jobs that has definitely taken a knock.

The DJ says he’s fortunate to have work outside of his DJ career. “Radio being one of the biggest mediums and forms of entertainment and information providers, we are marked as essential support workers. I still have Fresh on 94.7, Monday to Friday,” he tells FORBES AFRICA.

Whilst the entertainment industry has been rattled by the lockdown and travel bans around the world, DJ Fresh says players in the music industry will need to carry on finding new windows of opportunities to keep generating personal incomes.

Furthermore, he states that they will need to have bold ambitions to change the way in which they previously applied their minds, in order to survive.

“I am working on new music and excited for it to be released. I have live streams every Sunday on my Facebook page where I work with Oskido and a few other industry mates to create sets called Legends Live. My team and I are trying to find or create new projects where we are able to work with people remotely and that will help some of the unemployed people.”

The South African DJ believes those that fail to fully utilize and exploit their digital presence during this period, will have wasted a crisis.

Through trial and error, big business and big names are re-evaluating, re-strategizing, and trying innovative ways to face the disruptive virus and rebuild themselves sustainably for the future, knowing only too well, that if they don’t adapt, they will surely die.

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