Banks competing to better use AI and digital tech to serve clients - KPMG report

Motheo Khoaripe (in for The Money Show's Stephen Grootes) interviews Auguste Claude-Nguetsop, Financial Services Sector leader for KPMG Southern Africa.

Do you ever still go into an actual building to do any of your banking business?

Some South African banks are cutting back on physical branches, and also scaling down their ATM networks to partner with retailers to offer cash withdrawals in-store.

KPMG's latest banking transformation report shows that we are following a world-wide trend.

RELATED: Some SA banks scale back ATMs as cashless digital economy grows

More than 220 banking leaders were surveyed globally to track how leading banks are achieving success while adapting to the demands of the digital age.

Operational and cost transformation is at the top of the agenda for banks navigating a complex landscape of economic pressure, rising competition, and rapidly evolving customer expectations, says KPMG.

"With tighter margins and increasing regulatory demands, banks are turning to digital technologies, automation and AI to streamline operations, reduce costs, and enhance service delivery."

KPMG International

However, many banks struggle to deliver on their transformation objectives, KPMG says, with just 18% having been highly successful in achieving their transformation goals.

Mothoe Khoaripe interviews KPMG Southern Africa's Auguste Claude-Nguetsop, who highlights the top three areas of concern in the banking industry.

Heading the list is the ongoing struggle of banks to remain competitive and keep a high margin on the operation, he says.

Aligned to this, is finding ways to use artificial intelligence (AI) more to benefit customers.

Then, of course, there is the drive to provide more, and better digital services.

"Digital banking is everywhere today with the apps available in this space... On the back of that, banks have to handle the issue of digital risk."

Auguste Claude-Nguetsop, Financial Services Sector leader - KPMG Southern Africa

Addressing the change in the historical pattern of engaging with money and the cashless trend, Claude-Nguetsop makes an interesting observation about banking on the African continent.

"In most of the rest of the world, the cashless society is more advanced so there is less innovation in the payment space, for instance, than here."

Auguste Claude-Nguetsop, Financial Services Sector leader - KPMG Southern Africa

For more detail, listen to the interview audio at the top of the article, and click here to view the full report