Namibia’s banking sector embraces AI for expedited transactions

In a remarkable shift over the past three years, the Bank of Namibia (BoN) has revolutionised its payment processing system through the implementation of artificial intelligence (AI) technologies. Transactions that previously required more than a day to complete can now be finalised in less than two minutes, a significant reduction in processing time attributed to AI advancements.

This transformation has been facilitated by the introduction of internet-based portals that enable AI robots, including one named Onguvi—Otjiherero for ‘Eagle’—to handle documentation tasks, eliminating the need for officials to physically travel to the central bank. AI encompasses a broad range of technologies, including machine learning, robotic process automation, and virtual assistants, which have collectively streamlined operations within the banking sector.

Kazembire Zemburuka, a spokesperson for the BoN, reported that the bank has made substantial savings, totalling N$7 million, by automating manual processes. However, the transition to digital solutions is not without its challenges. Zemburuka highlighted difficulties in integrating newer systems with existing ones and noted the increase in cybersecurity risks accompanying the bank’s digital expansion. He emphasised that the bank must also contend with potential workforce skill gaps and the financial implications of ongoing technological upgrades.

“Despite these challenges, significant opportunities exist,” Zemburuka stated. “Emerging technologies offer the potential for streamlined operations and enhanced data analytics, which could improve the bank’s monetary policy decision-making.” To combat cybersecurity threats, the BoN has introduced regulations mandating two-factor authentication for all transactions, aimed at enhancing security across the payment ecosystem.

The trend towards AI integration is echoed across other banking institutions in Namibia. Waldheim Kazenango, manager of internal audits at Standard Bank Namibia, mentioned that the bank employs an AI tool called Python to scrutinise customer complaints on social media platforms like Facebook and X. He noted that while these initiatives are still in their infancy, they are instrumental in identifying and addressing risks more swiftly.

Ryan Geyser, the executive officer of digital data and customer transformation at Bank Windhoek, reiterated the benefits of AI, stating that the technology not only streamlines business performance tracking but also enhances customer service. He acknowledged, however, that there is a scarcity of expertise necessary to fully leverage these rapid technological developments.

Statistical data provides insight into the growing reliance on digital banking services in Namibia. According to Nedbank Namibia’s 2024 financial results, 70% of its clients were digitally active, an increase from 60% the previous year. Similarly, FNB Namibia reported that it had registered 595,593 customers using its digital platforms, signalling a shift away from traditional banking branches.

Chatbots have also become integral to customer service among various banks. Standard Bank Namibia introduced Ti-A, a WhatsApp-based chatbot, two years ago, while Nedbank launched Enbi, which operates on its Money app and online banking platforms. Additionally, Bank Windhoek’s Hey Jude App allows customers to make travel bookings and utilise home services through text or voice commands.

The introduction of AI technologies has raised concerns about potential job losses within the sector. Trade Union Congress Secretary General Mahongora Kavihuha pointed out that no previous industrial revolution has had a catastrophic impact on jobs and suggested that businesses should invest in lifelong learning for their employees. He also stressed the importance of social safety nets to support those who might be displaced by AI technology.

Meanwhile, Asnath Zamuee, Secretary General of the Namibian Financial Institutions Union, indicated that the union has worked towards win/win agreements for employees facing job losses due to digitalisation. She noted that while digitalisation has led to restructuring within the financial sector, the actual job losses have been minimal.

Experts such as Andreas Amukwa, a part-time cybersecurity lecturer, and Tinomudaishe Ndhlovu, a senior software engineer, agree that while AI poses a risk to certain repetitive jobs, it should not be viewed solely as a threat. “AI has the potential to disrupt jobs, especially those that can be automated. However, it’s not all doom and gloom,” Amukwa commented. Ndhlovu added that the integration of human intelligence with AI is essential to mitigating potential job threats.

IT specialist Marshall Ndashiva expressed optimism, asserting that there would not be significant job losses in Namibia attributable to AI for at least seven years, as the country adapts to these emerging technologies. He asserted, “For now, AI does not threaten jobs; it uses them to simplify tasks and automate processes.”

As the banking sector in Namibia continues to evolve in response to rapid technological advancements, the ongoing dialogue surrounding AI and its implications remains critical for understanding the future landscape of work and economic operations in the financial industry.

Source: Noah Wire Services