Going Digital With Your Lending? Assess Your Digital Readiness

Ethiopiais gradually unlocking its digital potential as well. But, a significant portion of financial services remain undigitized. Digitization in the financial sector is dominated by mobile banking platforms, which heavily rely on utility and telecom payments. 

(Source: spencerstuart.com)

Spencer Stuart, a leadership consulting organization, examines the transition of retail businesses in light of COVID-19 in a publication titled “The Future of Retail: How CEOs are Rebuilding for a Strong, Sustainable Future.” 

Although global trends vary by country, the pandemic has altered consumer behavior for the better, even in Ethiopia. 

Research done by Spencer Stuart, which analyzed responses from 30 CEOs engaged in retail businesses from over 116 countries, shows the priority for retail businesses has changed substantially in the past two years.

The tendency to think digital has been the major leap in Ethiopia. Now, people from government to private institutions are well familiarized with virtual meetings. Other lines of business that blossomed amidst the pandemic are e-commerce and delivery services.

An assessment by Cephus Capital published in 2020 states there are about 28 delivery companies in Ethiopia. Since then, some have established their dominance in the market and are growing exponentially.  

Many businesses recognized the trend early on and seized the opportunity to integrate delivery features. This includes informal retailers that have resorted to delivering goods to their customers at their own expense or at a low cost.

Key findings from the assessment

Mexico

In less than three months of the pandemic, FEMSA Health Division went from having no pharmacy invoices online to having the e-commerce share at 10%.

CEO Daniel Rodriguez Cofre says: “The key learning for me was that in order to better serve our customers and satisfy their needs, we need to move much faster in digital compared to our pre-pandemic plans,” 

Top priorities for CEOs after the pandemic 

– Shifts in consumer behavior

– Delivering a sustainable strategy with manageable expectations for long-term investment and growth

– The acceleration of going digital in every area of the business

Recommendations based on the findings of the study

-Create a culture that inspires creativity and courage

-Don’t confuse digital with strategy

-Widen your talent pool

“Digital does not equal strategy. Digital is an important channel of communication, and access to the consumer, from a sales point of view. But there are other elements of traditional marketing — like value proposition, pricing, margin, etc. — that should not be forgotten.”
Jaume Miquel Naudi
Chairman & CEO, Tendam Retail.

Read the research findings in detail here

 

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