Financial institutions within the West African Sub-region have been encouraged to make deliberate efforts to harness the potential benefits associated with integrating artificial intelligence (AI) for success and value realisation.
According to the 2023 KPMG West African Banking Industry Customer Experience Survey, there is a global surge in artificial intelligence adoption “propelled by the widespread embrace of large language models such as ChatGPT.”
The report noted that KPMG’s 2023 Global CEO Outlook survey found that 70% of global CEOs prioritise generative AI as a top investment for securing a competitive edge in the future.
The report further noted, “For banks in Nigeria and Ghana, AI can have a transformative impact on service levels that have recently been challenged due to the strain of high attrition and customer complaint volumes associated with the rapid adoption of digital channels by customers.”
This is because many banks in the region now serve millions of customers; therefore, scaling the potential of the workforce with technology has become a strong imperative.
Although the report affirmed the developing nature of AI’s potential, several organisations have already showcased successful integrations, illustrating its promise.
However, as with other emerging technologies, “AI presents peculiar hurdles, necessitating a strategic approach for success and value realisation.”
Banks were also urged to have a clear-cut approach and preparation to precede the AI integration, which must have the buy-in of stakeholders.
As West African banks gear towards adopting AI in their operations on a large scale, certain preparations towards AI readiness must precede the integration, supported by key stakeholder buy-ins, to cushion the impact of risk. A critical consideration is that banks must have a clear approach, the report added.
One successful approach to AI integration is the adoption of the concept of “value streams,” which considers the entire lifecycle of a product or service as a value-creation line. “With a clear view of the entire customer journey, banks can identify inefficiencies where AI integration would be most beneficial to all their stakeholders.”
Some areas where AI could be helpful include being a tool to speed up loan approval processes. AI-driven credit decisioning technologies would assist banking staff in fraud detection, automatic processing, and approvals of loan applications within a shorter period.
Meanwhile, the report pointed out that a high number of Ghanaians are shifting towards saving in foreign currencies other than the Ghanaian cedi. This was attributed to the high rate of depreciation of the Cedi against other major currencies.
“However, only one in five is able to set aside more than twenty percent of their income, signaling that rising costs have eroded disposable incomes. In response to this challenge, some Ghanaians have turned to saving in foreign currencies to safeguard the value of their money,” the report stated.