Importance of digital transformation
For ASA International, the digital transformation that is currently under way is critical to unlocking our growth potential. It will ultimately create a scalable, efficient platform and a compelling offering for our clients and colleagues. The technological overhaul has two main components.
Resilience - Core Banking System
It is essential that we have a robust CBS in order to scale the client base. It is also a becoming a prerequisite from a regulatory compliance perspective in terms of reporting and audit rigour as well obtaining various microfinance licences. The new Temenos-sourced system replaces the existing AMBS platform which has already reached end-of-life. The modular and open architecture of the CBS allows for seamless integration with the Digital Financial Services component. It will also allow easier adaptation to regulatory changes such as the requirement to convert to Islamic banking in Pakistan.
Sustainable client and business impact - Digital Financial Services
DFS will enable additional business scaling by eliminating manual processes for staff. In addition, it is the foundation for a compelling client offering delivered via an app. It is also important that ASA International stays ahead of the competition by having a client-friendly front-end interface as well as efficient operations. Lastly, it will also help to further minimise fraud misappropriation.
Rollout approach
Following the implementation of the CBS in Pakistan, ASA International is taking a structured approach to further rollouts. Next in line will be Ghana and Tanzania. These operating subsidiaries were chosen primarily given their size and importance, as well as the fact that one is a microfinance bank (Ghana) and the other is a microfinance institution (Tanzania). These different set-ups can then be leveraged across other markets including Kenya, Nigeria, Uganda, and Rwanda.
1 Currently predominantly security collateral. A deposit-taking licence is a prerequisite for offering (public) savings.
2 CBS prerequisite for offering DFS