Banks come under pressure to remain profitable



Banks are under pressure to not only comply with the ever-changing regulations, but also to modernise their systems and remain profitable as competition with Financial Technology (FinTech) firms thickens.

Speaking recently at the SAS Risk & Finance Analytics Roadshow in Lagos, Senior Business Solutions Manager, Pre-Sales Risk Practice, SAS, Charles Nyamuzinga, noted that banks face additional challenges, including risk analytics skills shortages, data management issues and integrating their risk management and finance processes across the enterprise.

But, on the positive side, they have started considering technology as a way of eliminating these challenges and have access to new streams of data that are also helping to advance the financial inclusion mandate.

SAS, a leading global analytics firm, as a technological partner for banking institutions has always played a proactive role in fostering innovation and transformation of processes and systems, from regulatory compliance to strategic decisions support, from digitisation to risk assessment in real-time and also providing analytics solutions allowing banks to adapt more quickly to regulatory changes while minimising costs.

Recent regulatory changes in the banking industry mean that banks across Africa should already be compliant with the new IFRS 9 accounting standard, which changes the way they calculate expected credit losses.

 

There is also the need to start thinking about the new ‘Basel IV’ framework, which impacts on how banks calculate their risk weighted assets and the amount of capital they need to offset those risks.

Other issues, which banks are  grappling with include incorrect modelling caused by data management and quality issues, skills shortages, drawing data from some disparate systems, credit loss calculations, and risk modelling.

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Chuka (Webby) Aniemeka
Chuka (Webby) Aniemeka

Chuka is an experienced certified web developer with an extensive background in computer science and 18+ years in web design & development. His previous experience ranges from redesigning existing website to solving complex technical problems with object-oriented programming. Very experienced with Microsoft SQL Server, PHP and advanced JavaScript. He loves to travel and watch movies.

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