Revenue is vanity, profit is sanity ... but cash is king. Until you have run your own business or been tasked with managing the financial affairs of a high-growth entity, it is hard to get a true appreciation of this oft-repeated business mantra.
The events of 2020 have highlighted why vanity metrics in your business count for nothing and why you need the right tools to ensure you are measuring the right elements.
With Covid-19 disrupting many of the traditional banking channels, having access to technology and the right banking partner has often proven to be the difference between success and failure for businesses on the continent.
As a bank, we are constantly challenged by our clients to develop and roll out integrated digital solutions that can help them do more business, more efficiently and across multiple technology channels including mobile phones and tablets.
The rapid adoption of our Absa Access solutions is a sign that we are on the right track – tools that solve real-world problems to address the rapidly evolving business environment.
Cash management is a perfect example: the lifeblood of every organisation is its ability to understand its financial position at any time and this includes managing its own cash conversion cycle (CCC). All the invoicing in the world counts for nothing if you are unable to convert it to cash in a cost-effective manner.
With Absa Access, a corporate can now offer their clients the ability to pay their bills on our platform.
Cross-border trade on the continent is expected to boom in the coming years as new trade zones are introduced and it becomes easier to move money and goods between African countries. We have developed solutions to assist companies that import products from suppliers in other countries and need simple solutions to make the required payments.
Banks are investing in the architecture needed to host more services to reduce their own operating costs, while ensuring they cater for clients that expect more services online. Failure to do so by banks with long-standing heritage and legacy could mean losing customers to FinTech companies or new digital-first banks.
At Absa we have focused a lot of effort over the last couple of years on finding solutions that put customer experience at the heart of our transformation plans.
Many in digital banking circles are debating whether the shift to digital channels is pandemic-inspired or will become a more permanent part of banking interaction with corporate clients.
In February, consulting house Accenture released a report following 47,000 interviews with consumers globally and Jigyasa Singh, technology MD for Accenture Africa, notes: “The pandemic-inspired increase in digital engagement is a double-edged sword for banks. While it has allowed them to serve customers efficiently throughout the pandemic – and advanced their digital strategies by up to five years in some cases – it has pushed them to launch solutions that are functionally adequate but devoid of emotion. To forge strong customer connections, banks must reimagine the digital services they provide and make those connections more personal and relevant.”
Absa and our suite of digital products intersect perfectly with our skilled banking and sectoral specialists. We have coupled innovative technology solutions while using big data analytics to provide insight to our corporate clients around their business and customer behaviour. We can provide an integrated technology and finance solution that fits the business requirements.
The boom in mobile telecommunications has resulted in the digital banking revolution in Africa, and we at Absa have developed solutions that don’t pander to vanity metrics but allow you to make better informed decisions about your business.
• Harcourt is CFO at Absa
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.