Exploring the future of digital transactional banking

By Nedbank Namibia’s Head of Transactional Banking, Reginald Obaking

The ongoing digital transformation has sparked several trends that have influenced the way Nedbank Namibia’s Corporate and Investing Banking (CIB) division revolutionises its solutions for businesses, corporations, and other large entities. CIB recognises the pivotal role of technology in transforming transactional banking services to enhance the overall client experience.

‘The fascinating way transactional banking continues to evolve day by day is by leveraging technology for enhanced efficiency, risk management, and client services,’ says Reginald Obaking, Nedbank Namibia’s Head of Transactional Banking, which falls under the CIB department.

Obaking joined CIB in December 2023 and is on board with the bank’s vision of making the transactional banking segment a trusted partner that offers innovative solutions, personalised services, and a commitment to excellence.

NAVIGATING THE DYNAMIC INTERSECTION OF FINANCE AND TECHNOLOGY

According to Obaking, the prospect of leading transformative initiatives and crafting solutions that not only meet current demands but also anticipate and meet future trends is exciting.

He notes the following trends and innovations, which Nedbank has adopted, as currently shaping the global landscape of transactional banking:

● The rise of real-time payments and solutions. The efficiency of having funds transferred and cleared instantly brings convenience to businesses banking with Nedbank Namibia. The increased demand for real-time payment solutions enables faster and instantaneous transactions 24/7, with real-time payment systems.
● Leveraging the use of chatbots, like Nedbank’s very own Enbi, to enhance client service and streamline banking processes will continue to expand the functionality of automated assistance.
● Gaining insight into client behaviour and preferences through artificial intelligence (AI) and machine learning (ML) will allow for a more personalised banking experience. By analysing transactional data and other relevant information, Nedbank Namibia will be able to offer personalised transactional banking product recommendations, targeted promotions, and tailored financial advice.
● The need to streamline transactional banking processes, particularly in areas like cross-border payments and trade finance, remains a priority. With the emergence of blockchain, a specific type of distributed ledger technology (DLT), Nedbank Namibia can facilitate transactions that are fast, secure, and low-cost – further making international or cross-border remittances more efficient.
● Harnessing the power of application programming interfaces (APIs) will help provide the foundation for innovation, collaboration, and client-centricity. APIs will continue to play a central role in open-banking initiatives. By allowing third-party developers with innovative fintech solutions to build new financial products and services, Nedbank Namibia will be able to be more agile and responsive in creating enhanced client experiences.

By the middle of 2023, Nedbank Namibia’s interim results revealed that 60% of its clients were digitally active compared to 46% at the same time the previous year, showing a steady move into a more digital world. Amid the digital shift, the goal at Nedbank Namibia remains the same – to provide world-class financial services and innovative digital solutions.

Several technological advancements have been adopted by Nedbank Namibia to mitigate the risk of cybersecurity threats for clients.

Multi-factor authentication (MFA) requires users to provide multiple forms of identification to access their accounts or authorise transactions. Having secure access controls in place limits who can access sensitive systems and data, and assigning roles and responsibilities to specific users minimises risk and threats.

Optimising and implementing the use of AI and ML, which can quickly detect threats and suspicious activities, has become an important way of protecting sensitive data.

Most importantly, education and awareness programmes for clients regarding safe online practices also play a crucial role in enhancing overall security in transactional banking.

GOING GREEN: PRIORITISING SUSTAINABLE INITIATIVES
Sustainability remains a priority for transactional banking as Nedbankers are money experts who do good to bank on a greener future.

With a growing trend towards eco-friendly projects in the region and globally, Obaking notes the importance of CIB positioning itself to be involved in the financing and structuring of initiatives related to renewable energy.

The division plays a crucial role in supporting the efforts of enterprises working to go green, as well as supporting these businesses in their decision-making with environmentally friendly business strategies. By incorporating environmental, social, and governance (ESG) considerations, Nedbank Namibia supports sustainable development and social progress with green bonds (debt security issued for green initiatives), as well as sustainable trade finance solutions and ESG-related transactional services.

One of CIB’s core beliefs is about changing the world around us. In his role at Nedbank Namibia, Obaking is motivated and inspired by the opportunity to drive meaningful change and innovation in the financial sector.

‘I look forward to steering Nedbank Namibia’s transactional banking segment toward a future characterised by innovation, client-centricity, and sustained success.’