KBA CEO CHAT - Rise of Customer-Driven Banking

CEO | Philip Odera, CfC Stanbic Bank, Chief Executive Officer
MONTH | November 2015
Chat Admin
Good afternoon and welcome to todays KBA CEO Chat Session hosted by Philip Odera CEO Stanbic Bank.
Chat Admin
We are scheduled to start at 2pm sharp so in the meantime please update your profile picture and prepare your questions.
Chat Admin
We look forward to an engaging and informative chat session once again.
Chat Admin
Welcome Trixie and all of you have logged in for todays chat session.
nuru mugambi
Hi all how is the day going? looking forward to today's chat
Chat Admin
Welcome Nuru.
Chat Admin
Ladies and Gentlemen we are 5 minutes away from starting this the second KBA CEO Chat Session focused on the Rise of Customer Driven Banking.
Chat Admin
Kindly join me in welcoming Mr Philip Odera to the CEO Chat session. Who wants to ask the first question.
Philip Odera
Hi guys im happy to be here...lets get this chat started
Paul Mburu
Hi guys hope you are all well........let get started
Charles Mabeya
How is the change to customer driven banking impacting on how you model your delivery channels
Paul Mburu
Mr Phillip how can we use technology to enhance customer driven banking
Philip Odera
I would like to talk about what banks were before...when we were rigid organisations, and we set up systems and structures and anybody who wanted to deal with us had to comply with these systems and structures. Banking was like that for many many years. We have now moved from that to a more responsive and more consultative institution.
Philip Odera
Hi Charles, thanks for the question.
Philip Odera
Customers are causing us to rethink our entire banking models. And we are finding we are having to invest a lot more in understanding the data that we hold. And we are trying to use the data to become better bankers. This means that we want to try and anticipate what you might be interested in as our customers, and provide convenient ways to deliver that to you.
Philip Odera
Hi Paul...very, very important point that you have raised.
Paul Mburu
which banking model can help us enhance customer driven banking
Philip Odera
People are technology driven, and more and more they interact with technology and so its critically important that banks align our contact with customers through the use of the same. So for example, almost everybody that we are dealing with is computer literate so it makes sense for us to ensure that they can access banking needs over the internet; it makes sense that our customers can also access their banking needs over their mobile phones. So its all about ensuring that we can provide our services as conveniently as possible and technology is the best tool to make that happen.
Calliester Gesora
Hello Charles, Banking products have evolved overtime, are we justified to say that our customers needs are the ones driving the current banking products in the market?
Paul Mburu
I have interacted with people and they discourage that by saying they security is not assured
Jennifer Kinuthia
Digitization is not only transforming the interaction with the customer and the customer experience, but it has also triggered the rise of new customer segments.. How well are we integrating the digital customer and ensuring that the systems are secure?
Paul Mburu
We should first check on how to make mobile baking application so as to be able to attract and sustain many customers
Philip Odera
Paul i think it is a combination of models. There is no silver bullet, its a combination of models and all dependent on what a particular bank wants to do. Its like cars, you can move from point a to point b with a car...which car you use is really dependent on your preference, they serve the same purpose. The cars may look and feel different but they all move you from point a to point b. so the best banking model is a matter of the preference of the bank's customers.
Philip Odera
Jennifer, welcome to the chat, security is of paramount importance to us and we endeavor to ensure that all customers that interact with us online can do so with their personal information as secure as possible. Any breaches are taken seriously so confidence and trust is maintained.
Philip Odera
About Jennifer's point on digitization bringing new customer segments...I think that customers are fundamentally the same. I think it is our interaction with the various customer segments that has changed. So you may find someone who would have walked into a branch before, now chooses not to walk into the branch and interact with you online. So the customer is the same. The channel has changed. There are also new customers who have not interacted with us through the traditional channels, who now can interact with us through digitization.
Philip Odera
Agreed Paul.
Charles Mabeya
Is the change in channels influencing customer behaviour in terms of increased transactions and balance levels
Philip Odera
Thanks for the interesting questions...allow me to also ask...what I would like to know is, what are your preferred interactions with the banks? how would you best like to interact with banks?
Philip Odera
I think thats an excellent question Charles
Charles Mabeya
mobile channel is most convenient,plus it offers you a wider reach
ROBERT OBIERO
Any plans to introduce this kind of platform within your customer care centre? one that would enable clients to interact or chart online rather than use conventional telephone?
Philip Odera
We are finding that some customers are definitely increasing their interactions with us because the digital channels are very convenient and are interactive. We like this because we get instant feedback from our customers. And this allows us to serve customers better and in a more focused manner.
Philip Odera
Robert we are just finalising on this capability and it will be available at Stanbic Bank in early 2016.
clarice Sesi
Good Afternoon, I hope that you are all well. Thank you for taking the time out to chat with us.With the rise of customer driven banking ,the banking industry has embraced and offered digital / technologically based solutions to our customers that offers convenience .My question is, as a banking industry, how do we optimize the customer experience and enhance customer service in a consistent way.
Philip Odera
Welcome Clarice. I am very well thank you. I think thats a very pertinent question. The way that you seek to optimise customer experience is by becoming a more listening bank. The more we can provide solutions to customer problems, the more successful we both will be -- that is our customers and the bank. But it starts with being a more listening and more caring bank.
Philip Odera
Id like to reflect on what Ive seen in different markets which I think will soon happen here in kenya
Philip Odera
I've seen in other markets more evidence of disruptive technologies and disruptive models. So for example crowd sourcing; non traditional players having a bigger role in the financial industry, such as supermarkets, fuel stations, telcom companies;...and many others who provide ease of access and convenience. And these are all playing a bigger and bigger role in financial intermediation. I'm curious to know, what peoples thoughts are around this?
Tito Kuyoh
Unlike other sectors,banking sector does not differentiate itself on pricing but rather by customer service. How have you differentiated yourself as a bank from competition that makes you stand out?
Philip Odera
Tito thanks for your statement and your question. I think actually banks do use pricing as a differentiator otherwise you would find that every bank charges the same. However, appropriate customer service is always going to be a key selling point. At Stanbic bank, we are trying very hard to ensure that customer service and appropriate solutions to customer problems is a key differentiator.
Philip Odera
Im curious what do you see in other sectors that you would like to see included in the banking sector?
ZACHEUS MWANGI NDIRITU
most bank have embarked on customer driven operation as they compete on customer winning and royalty brands like agency banking have come up do you see this as threat to bankers as we talk of carrear in banking? not forgeting mobile banking platforms
Chat Admin
Welcome to Habil, Zachaus and any others that have recently joined this chat session. Philip has raised a couple of questions and it would be great to hear your thoughts, opinions and questions.
Philip Odera
Zacheus, thanks, an interesting observation...agency banking and similar alternative channels actually compliment traditional banking. They are therefore not competitors but customer enhancing, and convenient access points. Traditionally we would have viewed them as competitors but we now view them as partners in serving our customers.
Philip Odera
Habil thanks for joining us...
Philip Odera
Habil whats your take on the discussion so far?
Thomas Njue
Hi Philip, my thought on this is that the other non-traditional players have pushed Banks to be more innovative. A casing point is the upcoming Kenya inter-participant transaction switch or close to home the Digital Branches at CfC Stanbic Bank.
Philip Odera
Totally agree Thomas. And as much as it was traditionally not welcome competition it has turned out to be very healthy competition because it has driven banks to become more innovative and far more customer focused. This is a good thing. And a great outcome.
Alex Mugo
Afternoon, my observation is that out of the current competition banks have really tried and they are doing well on the subject of discussion today
Tito Kuyoh
For starters , in the telecom industry, innovation has driven them into cannibalising even into the banking industry. As a bank ,you can tie your products and services innovatively with what drives the market similar to what we see with the likes of Safaricom ,we have seen them going into health ,transport ,hospitality ,there lies an opportunity for you as a bank to tap into untapped revenue .
ANN CONGO
I agree with Mr Philip about Listening to the customers. Listen to the unspoken or rather Hear what isn't said is very important. And Yes,Mobile and Internet banking is very conviniet and easy to use. However I think since Banking being a service indutry, the most important factor that a Bank can do different is give excellent customer service.
Philip Odera
I like your observation Tito.
Philip Odera
Banks indeed have to look beyond our own industry and learn from and incorporate the best from other industries, especially in the service sector. So there is a lot for us to learn as a banking industry from hospitality such as hotels, airlines, and so forth.
Philip Odera
Ann I totally agree with you. We strive to do this every single day. We dont always get it right, but it remains our mission to achieve this.
Philip Odera
As we come to a close of today's chat. I would like to appreciate all the questions and comments that we have received. And I have taken some good learning points and observations from this interaction. I hope I have also given you some sense of how banking is evolving and innovating to meet customer needs. Thanks everybody.
Charles Mabeya
Thanks for the insights Philip
Alex Mugo
Thanks Philip for creating time to interact with us.
Philip Odera
Thanks Charles and Alex
ZACHEUS MWANGI NDIRITU
TALKING OF BAD DEBTS.IS IT REALY FAIR FOR DELIQUENCY DAYS TO BE CONSIDERED BY ANALYST HAMPERING APPROVALS YET SECURITY TO CURRENT APPLICATION IS MORE THAN ENOUGH.
Thomas Njue
Let’s look at the Internet Service Providers (ISP), between 2000 and 2007 those that adapted to the market moved from the normal internet home connections and ventured into laying Fibre connections in towns and cities, in addition to offering servers like co-hosting Data centres, web-design, live streaming of Music and VSAT connections to mention a few. These are the ISPs that still exist to date. For Banks this change is being experienced and the more avenues we venture too as Tito as mentioned the better for our survival.
ZACHEUS MWANGI NDIRITU
PHILIP THANKS FOR YOUR TIME
Philip Odera
Agreed Thomas.
Philip Odera
And thank you Zacheus for your questions and observations
Chat Admin
Thank you Philip for spending this last hour again with us and for your comments and insights.
Philip Odera
Thanks all. And good bye everybody.
Chat Admin
Thank you to all the participants for joining us and for asking questions and making comments.
Chat Admin
Don't forget to join us for our third and final chat in this series on Friday 20th Nairobi where the topic will be on Value Creation through Unconventional Banking and will be chaired by Titus Karanja CEO of K-Rep Bank
Chat Admin
Enjoy the rest of your day.