Business News
Survey indicates bots are the next big thing Nigerian Businesses
Price Waterhouse Coopers (PwC) has revealed the results of its Shared Service Centre (SSC)/Centralized Processing Centre (CPC) survey.
Highlights of the survey
Results from the survey which cut across various sectors of the economy showed significant cost savings had been made by adopting shared services and centralized processing centres especially for large organizations.
Here are a few key points from the survey which was conducted among C-Suite executives across various sectors.
- 26% of Nigerian SSCs surveyed selected their location based on the availability of support infrastructure.
- 23% of respondents implemented the SSC/CCS for improved service/process quality.
- 50% of respondents have achieved their objectives of implementing the SSC/CPC.
- 83% of respondents indicated their organizations have adopted multi function Shared Service Centres.
- 31% of CPC and SSC respondents achieved a cost savings of between 10-30%.
- 83% of respondents indicated that Finance and Information Tecnology functions were major candidates for migration to Shared Service Centres.
On Bots
- The survey also revealed that the next big thing for Shared Services and Centralised Processing will be the rise of ‘bots’.
- Robotic Process Automation (RPA) will make it possible to fully automate highly rule-based/repetitive processes, thus reducing headcount and associated costs.
- They also explained that expanding the service scope of SSCs/CPCs to include more complex activities, will require a new set of skills, knowledge and qualifications
- As more SSCs and CPCs implement advanced automation tools, the role of transaction processors will be redefined. Job roles will be more focused on handling exceptions, providing insights and ‘adding value’
During the event, Aigbe Olotu Group Head Finance at the Sahara Group and Sylvia Nwakwue Divisional head Transaction Services GT Bank highlighted the benefits of shared services and the challenges he had faced in their adoption such as dealing with staff redundancy, difference in time zones and convincing senior management.
Alistair Hoefrt, Director Intelligent Automation PwC South Africa also gave a presentation on why companies had begun using bots to handle some aspects of their processing and the benefits of using them.
What is a bot ?
A bot is an application that performs an automated task.
Benefits of using bots
Standard Control: Bots will make it possible to automate repetitive processes, thereby enhancing efficiency. Human beings are prone to error due to fatigue or poor skills.
Data validation/Quality: Due to their programming to follow specific instructions, bots maintain data quality. So if specific details of a drivers licence are required, the bot would accept/reject an application based on pre defined standards. A human being on the hand could decide to
Cost savings: Bots are far cheaper to maintain compared to human labour as they need no overtime and do not agitate for salary/wage increases.
What sectors could bots take people’s jobs?
Bots are used across several sectors, but are increasingly being used to replace customer care inquiries since the questions take a repetitive format.
Challenges remain
Despite the inherent advantages in using bots, significant hurdles remain for their adoption in Nigeria. Job losses that could occour would be resisted by labour. In a country with poor internet supply, maintaining 24 hours services with bots might be a challenge.
The high level of illiteracy in the country will also serve as a stumbling block to a mass adoption of bots in business. Call centres for example, have had to employ staff that can speak indigenous languages in the country to sort customer issues.
Coronavirus
COVID-19: Moderna set to launch a new vaccine for virus strain found in South Africa
Moderna said it is accelerating work on a covid booster shot to guard against the recently discovered variant in South Africa.
American biotechnology firm, Moderna Inc. on Monday announced that it is launching a trial of a new Covid-19 vaccine as it warned that its current shot was less effective in tackling the strain that emerged in South Africa.
Moderna said it is accelerating work on a covid booster shot to guard against the recently discovered variant in South Africa.
According to the company, Laboratory tests show Moderna’s Covid-19 jab still works against the variant named 501Y.V2, which emerged in South Africa, and B.1.1.7, which was first discovered in the UK.
It however warned that the neutralising antibody response to 501Y.V2 was sixfold lower compared to the original variant, raising concerns that immunity to it may wane significantly, particularly in older people.
“Out of an abundance of caution and leveraging the flexibility of our mRNA platform, we are advancing an emerging variant booster candidate against the variant first identified in the Republic of South Africa into the clinic to determine if it will be more effective to boost titers against this and potentially future variants,” Moderna CEO Stephane Bancel said.
What you should know
- On Thursday, Dr. Anthony Fauci, White House health advisor said that new data had shown that the Covid-19 vaccines currently on the market may not be as effective against new and more contagious strains of the coronavirus.
- Also, a team of researchers working with South Africa’s National Institute for Communicable Diseases stated that the 501Y.V2 shows substantial or complete escape from neutralising antibodies in COVID-19 convalescent plasma.
- According to reports by South African researchers, the 501Y.V2 variant is 50% more infectious than previous ones. It has already spread to at least 20 countries since being reported by the World Health Organisation in late December.
- Meanwhile, the total confirmed cases of the virus is currently at 99.85 million with over 2 million deaths worldwide.
Corporate Press Releases
FITC wins BIZZ, IBX Global Awards for Business Excellence, Strategic Leadership
FITC was announced the winner of the two global awards in an elaborate virtual ceremony held in Doha, Qatar and Houston Texas respectively.
FITC, the world-class, innovation-led, technology-driven, knowledge and professional services institute has emerged winner of the 2020 Business Excellence Award (The BIZZ Awards) and the Strategy, Change, and Transformation Award (The IBX Awards).
FITC, which provides cutting edge Learning, Advisory and Research Services to organizations within the Financial Services and other sectors, was announced winner of the two global awards in an elaborate virtual ceremony held in Doha, Qatar and Houston Texas respectively.
The Nigeria’s premier knowledge institute, FITC, won the Gold category in The BIZZ awards and Silver category in Strategy, Change and Transformation in the International Business Excellence, IBX Awards in recognition of its phenomenal initiatives that have led to innovative and exceptional transformation within the organization.
Also presented with an award was the Managing Director and CEO, FITC, Chizor Malize, who won the IBX 2020 Award for “Inspirational Leader”. The award was in recognition of the innovative, dynamic and game changing work at FITC in 2020 at the height of the global pandemic resulting in the extraordinary organization wide transformation at FITC and positive impact on the Nigerian financial services sector, FITC’s primary focus area.
Other IBX 2020 Award winners include Microsoft and Virgin Mobile.
The International Business Excellence (IBX) Awards is part of a global business movement, giving organizations the chance to meet and compete with others from all over the world. Over the last twelve years, IBX Awards have been leading the way in recognising inspirational business practices, holding over 100 events and hosting more than 2000 companies.
Organized by Awards International, the IBX Awards recognises long-term sustainable profitability achieved through the practice of excellence, which occurs across a broad range of disciplines and defines the modern business agenda.
The BIZZ Awards gathers and recognizes leading businesses from different regions that contribute to the daily growth of their local economy and the world economy. THE BIZZ was created by World Confederation of Businesses (WORLDCOB), to offer to the global business community a range of benefits that further their development.
WORLDCOB was founded in 2004 in Houston, Texas, in the United States of America. Its primary mission is to promote business development worldwide, recognizing and boosting the growth of leading businesses and businesspeople in every country through the special tools and services that it offers its members. The organization has approximately 3,500 members representing over 130 countries.
Considered to be the most important business excellence award in the world, The BIZZ Awards is organized and given out to the most outstanding companies and businesspeople in each participating country. The award which targets small, medium and large enterprises was created to recognize businesses with practices worthy of recognition who end up being examples for other businesses to follow in their communities and internationally.
Speaking on the awards, Malize, said the organization would keep going beyond the ordinary in its effort to delivering innovative knowledge solutions to its clients in the Financial Services and other sectors.
“For 40 years, FITC has been an innovator, enabling people and organizations to excel and it was in line with our vision to build a world class innovation-led and technology-driven organization that we defined our six success pillars which are programmes, process, platforms, people, positioning and performance.
“We took deliberate and strategic steps by making significant changes across these key drivers of the positive transformation experienced today by our stakeholders, and which has also culminated to these awards and recognitions being given to our organization today. We are extremely delighted by these awards and we remain committed to helping our clients in the Financial Services and other sectors navigate and advance their careers, while building on our member firms’ successes through our clear vision, strong corporate values, and our culture of excellence,” Malize said.
Established in 1981 as a non-profit organisation limited by guarantee to provide capacity building and serve as a knowledge hub for the Nigerian Financial Services Sector, FITC is owned by the Bankers Committee, Central Bank of Nigeria, Nigeria Deposit Insurance Corporation (NDIC) and all deposit money banks in Nigeria.
Over the years, FITC has demonstrated delivery of best-in-class services using a large pool of multidisciplinary and versatile professionals, who provide business support to its numerous clients within the public and private sectors, most notably within the financial services sectors and public sector of Nigeria and Sub-Saharan Africa.
Debt Securities
Ecobank Nigeria secures N50 billion 10-Year subordinated loan
Ecobank Nigeria has secured a N50 billion, 10-year bilateral subordinated loan.
Ecobank Nigeria, a subsidiary of Ecobank Transnational Incorporated (‘’ETI’’) has announced that it has secured a N50 billion, 10-year bilateral subordinated loan.
This is according to a disclosure signed by the Group Head, Adenike Laoye and sent to the Nigerian Stock Exchange, as seen by Nairametrics.
The bilateral funding will enable the bank to maintain stable liquidity and improve its balance sheet, especially the capital adequacy ratio by an estimated circa 300 basis points.
What they are saying
The disclosure from the bank read thus:
“Ecobank Transnational Incorporated (“ETI”), the parent of the Ecobank Group, announces that one of its significant subsidiaries, Ecobank Nigeria, secured N50 billion, 10-Year bilateral subordinated loan.
“The bilateral funding provides stable medium-term liquidity to the balance sheet of Ecobank Nigeria and positively improved its balance sheet ratios, especially the capital adequacy ratio by circa 300 basis points. The transaction proceeds would be deployed to support Micro, Small and Medium Scale Enterprises (“MSMEs”) and Small Corporates.”
What you should know
Ecobank Transnational Inc. had earlier recorded 11% rise in its interest income to N139.6 billion for Q3 2020, as captured by Nairametrics.
- Subordinated loans have lower priority than other debt instruments in case of liquidation. They are only repayable after other debts have been paid.
- This debt can either be secured or unsecured and it typically has a lower credit rating and higher yield than other senior debt.
