Money makes the world go round and institutions have grown to create and extract value as it journeys around. Some of these institutions are central banks, commercial and retail banks, investment banks, savings and credit cooperative organisations, brokerages, insurance companies, mortgage companies and most recently digital lenders.
Many have run for decades, some even centuries, on the back of ways of work that have remained unchanged, often by design, maintaining a status quo that has best served the sector, channelling capital, mitigating risk and facilitating transactions.
However, over the past few years, markets have agitated for a differentiated relationship with these institutions and the value that they provide.
Terms like financial inclusion, equity, shared prosperity, financial wellness, sustainable finance and customer-centricity, now roll off the tongue easily as consumers become emboldened to seek out and ask for what truly meets their needs.
Not straightjacket offerings crafted with little or no empathy. These institutions have weathered the times and prospered but are now at an inflexion point.
Meanwhile, technology continues on its unbridled march forward, offering the building blocks for transformation, going beyond the simple conveniences of channel access.
From saving, lending and borrowing, to trading and investments, everything is being up-ended. Emphasis is on redrawing the lines across trust, transparency and accessibility.
Data and machine learning allow us to better understand and anticipate market trends, reduce risks, and personalise financial services, permitting greater efficiency and tailored solutions. Moreover, the rise of decentralised finance, digital currencies and blockchain in general, challenges our notions of traditional monetary systems. While they present regulatory challenges, they are forcing us to rethink the very nature of money, central banks and financial intermediaries.
The talent mix is also changing. Non-finance or science-related disciplines are growing in ‘share of staff’ as it has become apparent that a balance of perspectives is needed in the room.
For example, majors in the humanities, are known for strong critical thinking and problem-solving skills, trained to analyse complex issues, evaluate arguments and think logically. Music and the arts, in general, foster creativity.
Different perspectives often lead to better decision-making by challenging conventional wisdom and avoiding groupthink, leading to the development of more holistic and well-rounded financial strategies. I am excited about what the remainder of this decade holds in the world of finance.
Njihia is the head of business and partnerships at Safiri Express, operator setting up Kenya’s first carbon-negative public transport network. [email protected]
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
