The banking sector in Kenya has embraced the digital revolution. In the past five years, investment in technology has significantly increased. The results have been greater efficiency, improved services to customers and a drop in operating costs.
However, the lenders are not fully utilizing the data in their possession to drive up revenues.
Tamara Cook, the Chief Executive Officer at FSD Kenya believes that banks can derive so much from the customers’ data they hold. In an interview with the Kenyan Wallstreet, the top executive said, “The technology we have today enables so much more to be done with the data that banks have. Banks are not using the data they have in the most robust way…”
Some of the ways Kenyan lenders can gain from big data analytics include; analyzing customers’ spending patterns, identifying the popular channels of transactions, providing tailored products for different customers, assessing risk and taking precautionary measures, and eliminating unnecessary expenses.
Speaking during the interview with the Kenyan Wallstreet, the FSD Chief Executive lauded the move by parliamentarians to establish laws on consumer data protection. However, she noted that it is important to find balance between protecting consumer data and using the data to provide better services to customers.
Tamara Cook leads the Nairobi-based charitable trust – Financial Sector Deepening, Kenya. The organization’s main role is to help the financial services sector in Kenya serve the low-income earners and Small and Medium-Sized Businesses.