GenZ to drive banking services in metaverse – CBN

The Central Bank of Nigeria (CBN) has described the next generation of bank customers, the GenZ, as technology savvy and digital natives, unlike their predecessor.

GenZ, which is the short form of Generation Z, is the generational cohort following millennials, who were born between the late 1990s and early 2010s. A metaverse is described as a network of 3D virtual worlds focused on social connection.

Rakiya Mohammed, director, information technology department, at the CBN, said this at the maiden edition of the annual banking and technology forum organised by the Chartered Institute of Bankers of Nigeria (CIBN), virtually and physically in Lagos.

“I submit that GenZ will bring us into the era of banking in the metaverse. So, the question for us is how are we planning to further embrace the unfolding and disruptive technology trends? She queried.

According to her, what the GenZ want is fast, mobile, borderless, and frictionless banking products and services as the very basics of their experience on the platforms, adding that “anything short of this is unacceptable and like you know GenZ do not have the patience of their parent’s generation.”

Represented by head, IT strategy and innovation, CBN, Mohammed noted that there is a generational shift occurring in banks’ customer demography and in the future, stressing that the GenZ will be the major recipients of banks services and that there is a need to position organizations in such a way as to adequately harness the potential.

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She said the CBN is beginning to have conversations around monetary policy in the metaverse, open banking, digital identities, among others.

Leveraging the gains in adoption of the eNaira, she said the CBN recently concluded its first hackathon focused on expanding its use cases in driving financial inclusion and cross border remittances. “Embracing technology as a business enabler to drive competitive advantage is no longer optional. It is a matter of corporate survival going into the future,” she said.

“I totally agree with the saying that banks are fast becoming technology companies offering financial services. Technology is both a leveller and a catalyst for competitive advantage,” Mohammed said.

In his remarks, Ken Opara, president/chairman of council, CIBN, said digitisation of financial services is an ongoing revolution and that there is the possibility that robo-advisory will be a significant application in the future. Similarly, he said the blockchain-based services will gain in popularity in the coming years.

In the same vein, he said financial services organizations can tap the potential of the cloud to make processes more transparent and collaboration easier.

According to the results of a 2021 PWC survey of Fortune 1000 companies, 74 percent of executives are engaged in a cloud strategy, and 56 percent see the cloud as a critical component of growth and innovation. The survey also found that for almost one-third of industrial product leaders, the faster creation and delivery of new digital products and services play a role in measuring the value of the cloud.

“Clearly, evolving technologically is at the heart of efforts to serve customers better through customer experience management. Adopting new banking technology is critical for financial services organizations to thrive,” he said.