Innovation development in Financial Service Sector

  The 2008 global financial crisis not only marked the end of the the benign credit environment, it also change the way corporate client and their bankers views transnational banking.Sound transnational banking practices like payment, receivable and reconciliation and trade risk instrument moves back to the center of corporate client business agenda increasing competition for better products offering
    
   Visibility of information become critical as clients sought real time access to their global cash position in order to manage their working capital requirement and liquidity..Equally, international trade products become more important in managing risk and banks are seeking more annuity-based revenues with lower capital cost and less capital consumption while regulator are drafting raft to prevent another collapse.
  
     In Africa, both corporate client and banks have had to invest in technology and operation supporting the centralization of treasury function while delivery integrated transaction management solution.Non- financial services companies are also  disrupting the industry with major technological innovation.

   Despite physical cash still being king in most part of Africa, technology solution such as mobile money along with regulation encouraging electronic form of cash are forcing the bank to choose very carefully between competing head on ,partnership or monitoring development.For example, industry forum are adapting clients bank relation that standardization time cross-border payment systems.

    Africa bank are adapting to this new world especially as low commodities price continues to surpassed interest rate with risk view of emerging markets placing  pressure on translation flow in Africa.   In this environment, intra-Africa trade offer an alternate route to boosting economic growth and to address continental challenge. Africa is expected to be the second fastest growing continent within 10 years behind emerging Asia but ahead of Middle East, with more than 50% of countries growing in excess of 5% annually  until 2025.
   
   In realizing this opportunity, client will increasingly look to their bank to deliver specialist solution to manage Africa risk through right products and capability across cash, trade, and security. Winning client relationship in Africa  earn a bank business that only increase as the client database grow. Therefore Africa banking sectors must focus more on technological innovation as a way of  connecting to the world

                                                                                                       By: Akinola Taofeek
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