2023-10-22 09:37:48
Two themes dominate the current debate: digital transition and financial inclusion. These two issues, although distinct, are intimately linked, and their convergence offers extraordinary opportunities for the transformation of the country.
Tunisia, like many economies around the world, finds itself at a crucial crossroads in its economic and social development. Two themes dominate the current debate: digital transition and financial inclusion. These two issues, although distinct, are intimately linked, and their convergence offers extraordinary opportunities for the transformation of the country. In a context where the technological landscape is evolving rapidly, it is imperative to rethink how the digital transition can be used to support financial inclusion. These two major issues shape the future of Tunisia. On the one hand, the digital transition, which has the potential to revolutionize the way in which citizens access information, services and economic opportunities. On the other, financial inclusion, which aims to ensure that every individual, whatever their situation, can participate fully in the formal economy. This complex and vital subject was explored in depth during the 25e session of the International “Reality” Forum, which was held from October 19 to 20, 2023 in Hammamet.
Isolated initiatives will not be enough
The moderator of the “Digital Transition for Financial Inclusion” panel, also former Minister of Finance, Hakim Ben Hammouda, did not fail to recall that the need for the digital transition to promote financial inclusion is today a pressing challenge. which many countries, including Tunisia, are facing.
“Tunisia, like other emerging economies, must deal with a significant gap between the ambitions of the digital transition and the reality on the ground. It is, therefore, time for Tunisia to take up the challenge of digitalization and financial inclusion by adopting a global vision. Isolated initiatives will not be enough to bridge the gap that currently separates the country from international best practices,” he said.
In the same vein, the former minister added that digitalization is an essential catalyst for the economic, social and political development of Tunisia. To thrive in an increasingly connected world, it is imperative to overcome the obstacles that hinder the adoption of these innovations and to create a future where digital transition and financial inclusion go hand in hand, thus promoting economic development and more inclusive social.
It is, therefore, imperative to realize that digitalization is not limited to the opening of accounts on social networks, but extends to the profound transformation of financial and administrative practices. In 2008, online payment was already a reality for many countries, while Tunisia lagged considerably in adopting these practices.
The digital transition equation for financial inclusion
For his part, Radhi Meddeb, president of the Council of the Financial Center for Entrepreneurs, affirmed that the digital transition remains a major challenge to overcome for our country. With the exception of a few notable initiatives, notably “Smart Tunisia”, the country faces increasing challenges due to the rapid evolution of digital technologies. It is therefore imperative to adopt a more ambitious and comprehensive approach to meet the challenges of the digital transition.
A second major issue is financial inclusion, a recurring concern of international financial institutions, banks and NGOs. Access to financing remains complicated for many sectors, despite official banking figures. It is essential to surround yourself with experts who have worked on these issues for years to develop suitable solutions.
“Banking, although progressing, presents significant challenges. It should be noted that many people have accounts, but only use them for limited transactions, such as withdrawing wages. It is therefore essential to look at the quality of banking, ensuring that people have access to a full range of financial services,” he stressed.
In the same vein, Meddeb added that financial inclusion is the cornerstone of all other forms of inclusion, whether economic, social or political inclusion. It allows individuals to access banking services and obtain financing for their projects, thus promoting their economic inclusion. Robust economic inclusion, in turn, contributes to social inclusion and then to political inclusion. Therefore, it is imperative to put in place measures to improve financial inclusion.
Regarding digitalization, the president of the Council of the Financial Center for Entrepreneurs affirmed that it is essential not to be fooled by the high number of “Facebook” accounts or smartphone users. Two thirds of the population have never used a computer and are unfamiliar with digital technologies. It is therefore essential to develop initiatives aimed at increasing “digital literacy” (an individual’s ability to understand and use information using technology) and making online services more accessible.
“The meeting between financial inclusion and digitalization can be achieved through mobile banking, the lifting of restrictions on micro-finance and the development of micro-savings and micro-insurance. It is essential to create a regulatory environment favorable to these initiatives. Furthermore, it is crucial to recognize that banks are not the main players in financial inclusion. They must focus on the profitability of their accounts, while other actors, such as micro-finance institutions, are better positioned to work with informal and micro-economy actors,” he said. he further clarified, while adding that the digital transition for financial inclusion is a complex challenge, but essential for our country. It requires a more ambitious approach and initiatives aimed at improving the quality of banking, increasing “digital literacy” and promoting access to financial services. By combining these efforts, we can create a more inclusive future for all citizens.
Six strategic axes
For her part, Feriel Chabrak, Managing Director of TBE, assured that the digital transition in the banking sector is a crucial subject, which raises essential questions regarding financial inclusion and the way in which traditional banks must evolve to meet the needs changing customers.
A fundamental question is whether the traditional role of banks encompasses financial inclusion for all.
Traditional banks have not historically targeted a specific audience, but with the advent of technology and the rise of online banking, the time has come to rethink their approach to include a more diverse clientele. According to Chabrak, to address this digital transition, several axes are crucial. First of all, it is necessary to focus on the customer. Listening to customer needs is essential to shaping the banking products and services of tomorrow. The aim is to create a customer-centric experience to meet their expectations, thereby promoting financial inclusion.
Second, banking product innovation is essential. Products must integrate technological components to offer speed and accessibility, two key elements for customers today. Third, product distribution is a challenge. Digital platforms offer new opportunities, but accessibility for all remains an important issue. It is essential to ensure that opening bank accounts does not require trips to branches.
The fourth point is the operational model. Technology cannot be fully leveraged without internal transformation. Governance, processes and internal structures must be aligned with digitalization to ensure continuity and sustainability of the service.
The fifth dimension is technology itself. Banks must have an information system master plan that promotes the digitalization of their processes.
Finally, the human dimension is crucial. A vision shared both internally and with customers is essential for a successful digital transition. This means that the bank must work on six fundamental areas to measure its digital maturity. Tunisia must, therefore, focus on these areas to succeed in its digital transition and ensure effective financial inclusion for all.
Birth of the first digital bank
Feriel Chabrak also underlined that the digital transition, although essential for the future of Tunisia, faces structural obstacles.
These challenges are not only limited to the banking sector, but affect the entire institutional landscape. The reforms needed to encourage innovation, flexibility and efficiency are slow to materialize. However, it is imperative to develop an ecosystem favorable to quality banking, digital literacy and equitable access to financial services.
“Another essential factor in this context is the notion of “Neobank” or digital bank, which embodies the convergence between the digital transition and financial inclusion.
In Tunisia, the first 100% digital virtual agency was created, paving the way for an innovative approach. This “Neobank” aims to provide instant and accessible banking services without requiring physical travel, thus reflecting the essence of the digital transition,” she announced.
And he added that a fundamental aspect of this development is the concept of “banking as a service”, a collaboration between traditional banks and fintechs to expand distribution channels, particularly in terms of mobile payments. However, the path towards true digitalization in Tunisia remains strewn with structural and administrative obstacles that hinder the adoption of these innovations..
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