Some financial analysts have stressed the need for banks to alter their revenue models and embrace digital transformation in order to create an entirely new banking experience that meets the demands and expectations of today’s millennial.
The analysts gave the advice during a virtual investment conference organised by Zedcrest Capital Limited at the weekend. “So, that model where banks rely traditionally on net-interest income has to change. And we are beginning to see that, even though we are not yet at that point. So, what do we do? As banks, we have try to engender credit growth in the economy. So, we have to keep on providing service offerings and the whole push on digital is critical,” Ebong said.
“Asset managers became irrelevant as everyone could immediately invest directly in treasury bills just as the government latched on to that and came up with savings programmes. “So, it is understandable that they are under stress, which is why we the advisers, regulators and industry have to come together to continue to sound caution to everyone because not all that glitters is gold. There is no investment that can guarantee 50 per cent returns in a market where GDP is not growth and risk-free rate is two per cent and negative productivity,” he added.
“Now, with COVID-19, those projections are likely to drop in the interim. But I think they would still pick. So, there are still opportunities in the market, there are investors who are still looking to invest in this market and there are private equity funds and banks as well that can take advantage of these opportunities, depending on the products that they issue out and how to issue them,” she added.