Managing Director/Chief Executive, Heritage Bank Limited, Mr. Ifie Sekibo Nigeria financial gurus, Ifie Sekibo, Yemisi Edun, among others have joined others to be named the most reputable bank CEOs in Africa.
The African banks’ analyses in the McKinsey report belong to four of Africa’s biggest economies – Kenya, Morocco, Nigeria, and South Africa.
The power minds behind the resilience showed by African banks to rebound
Faster to pre-crisis levels, had to be implemented by well knowledgeable, and high-profile open-minded thinkers who make decisions for Banking institutions. History has proven that crisis often births innovation. This can be
Observed in the African banking sector.
Over the past decade, the dampening profitability has led to unprecedented innovation being stirred up from first-time customer channels, automation, and the new back-office technologies.
The most recent crisis the world witnessed was the Covid-19 pandemic, which struck a blow to the banking industry across the globe; most specifically the African banks have seen a decline in the average return on equity (ROE) from 14% in 2019, to 7% in 2020 (McKinsley,2021.
These statistics are significantly better than the average return on equity (ROE) expected from developed markets, which is estimated to dip below 1.5% in 2021, before rebounding to initial levels pre-pandemic of 9%.
À McKinsey reports it may take the developed markets up to 5 years to recover from the crisis, which is longer than the 3 years estimated for African banks, this is due to them taking effective government interventions and taking measures that best tackles the virus.
So if economic recovery goes as planned, by 2022 the African banks should rebound to their pre-Covid-19 revenue levels, whilst the banks in developed markets will only rebound by 2024.
Leading banks have a proper and well-defined pattern of operation Model constructed by a major in-house innovative mind-a leader; these are Bank CEOs and MDs. Those in these positions are those who deploy strategies significantly to be able to respond to changes in the market. There are no fluke approaches in such attained heights and results.
They not only manage new operating models but also sustain a more functional innovation program that banks retain to their advantage as fintech systems progresses.This year, Reputation Poll International LLC, a leading global reputation-management firm finds it necessary to recognize the Banking sector, which plays a major role in our society, connecting people, linking up businesses and influencing the economy directly or indirectly. As part of our annual […]