ITWeb TV: Absa talks generative AI, cloud, crypto-currency and quantum computing | Episode #74
Science & Technology
Introduction
In a recent episode of ITWeb TV, Johnson Idowu, the Chief Information and Technology Officer at Absa, provided insights into the bank's technological strategies while discussing the evolving landscape of generative AI, cloud computing, cryptocurrency, and quantum computing. Absa operates across 12 African markets and is actively driving digital transformation in the banking sector.
Adapting to Technology
Johnson emphasized the importance of adapting to technology in a rapidly changing environment. He noted that many legacy systems, particularly mainframe software, were developed in a different banking paradigm. Absa's strategy focuses on modernizing its technology framework by prioritizing cloud solutions rather than migrating existing mainframe systems.
Currently, approximately 4.6 million of Absa's 12.5 million retail customers are digitally active, witnessing a steady growth of around 12% per year. In the corporate space, they’ve achieved an impressive 80% adoption rate of their digital platform, Absa Access, among corporate clients.
Embracing Digital Transformation
When discussing the employees' adaptation to new technologies, Johnson explained that employee engagement is crucial. Absa has trained around 6,000 employees in generative AI to encourage staff to embrace the technology. The bank aims to demystify AI and demonstrate its benefits rather than create fear of job displacement.
Generative AI is being utilized in various areas, including relationship banking and customer support, enhancing interactions and providing insights for bankers. Johnson pointed out that while AI's potential is extensive, its business value is still evolving.
Cloud Adoption and Transformation
Johnson highlighted that Absa was one of the pioneers of cloud adoption among banks in Africa, starting this journey in 2016. Around 25% of the bank's operating expenses are allocated to technology, with approximately 3 billion devoted to digital transformation annually. Johnson noted that the bank is roughly halfway through its cloud adoption journey, focusing on enhancing business agility, innovation access, and cost management.
Moreover, Absa has no plans to migrate its mainframe systems to the cloud, opting instead for a strategy that supports modernization while preserving legacy systems where necessary.
The Future of Financial Services: Cryptocurrency and Blockchain
Johnson discussed the bank's outlook on cryptocurrency, anticipating its rise as a viable payment method. He mentioned that regulatory evolutions around cryptocurrencies will significantly influence Absa's operations. The bank actively monitors fintech developments and considers both potential collaboration and competition within this space.
Johnson also discussed the potential of blockchain technology, particularly concerning digital identity verification and stable coins. Absa has been involved in research and partnerships exploring these innovations.
Exploring Quantum Computing
Lastly, Johnson expressed interest in quantum computing, acknowledging its impending relevance. He explained that although quantum technologies are still maturing, their implications for risk modeling and security could be vast.
Overall, Johnson emphasized the imperative nature of technological evolution within Absa as they strive to deliver competitive financial services in a digital-first era.
Keywords
- Absa
- Generative AI
- Cloud Computing
- Digital Transformation
- Cryptocurrency
- Blockchain
- Quantum Computing
- Fintech
FAQ
1. What position does Johnson Idowu hold at Absa?
Johnson Idowu is the Chief Information and Technology Officer at Absa.
2. How many countries does Absa operate in?
Absa operates in 12 countries across the African continent, as well as in the UK, the US, and China.
3. What is the adoption rate of corporate clients on Absa's digital platform?
Currently, about 80% of corporate clients are using Absa's digital platform, Absa Access.
4. What percentage of the operating budget goes to technology?
Approximately 25% of Absa's operating budget is allocated to technology investments.
5. What is Absa's stance on migrating from mainframe to cloud?
Absa plans to modernize its legacy systems but does not intend to migrate mainframe systems to the cloud.
6. How has Absa approached generative AI internally?
Absa has trained around 6,000 employees in generative AI to demystify it and promote effective usage within the organization.
7. What future technologies is Absa focusing on?
Absa is focusing on generative AI, cloud computing, cryptocurrency, blockchain, and quantum computing as part of its digital transformation strategy.