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How will the Bank of the future in East Africa look
Financial Focus 2022 | Part 1: The global economic crisis resulted in major regulatory reforms affecting the banking industry.
Welcome to the 2022 edition of Financial Focus, PwC’s industry publication for the financial services sector in the East Africa region. Since the last edition, we have witnessed the beginning of recovery in the financial services sector in the region from the impact of the COVID-19 pandemic. The Kenyan economy, for example, grew by 7.5% in 2021, after a slight contraction in the previous year.
This recovery has however been disrupted by the Russia-Ukraine conflict, which has brought new uncertainties and is causing unprecedented adverse impact on global economies. We have witnessed a sharp rise in the price of energy and commodities, as well as disruptions to supply chains. The US and other major western economies are experiencing the highest levels of inflation recorded in decades, and we are at real risk of global stagflation. Measures taken to curb inflation are likely to result in tightening of liquidity, higher interest rates and contraction of credit growth. Local currencies are likely to be under pressure, which will further add to inflationary strain. This will be a challenging time for financial institutions, and they will have to proactively manage new or elevated risks caused by turbulence in financial markets.
Digitising operations and service delivery continues to be a focus area for many institutions, as they seek to reduce operational costs while improving efficiency in service delivery. In the data driven world that we now live in, we will continue to see financial service institutions investing more in digitisation and adopting emerging technologies.
This Financial Focus edition is presented in a two-part series that shares insights on topics that are relevant to financial institutions across the East Africa region. Many of our financial services clients operate regionally and the contributors to articles in this edition reflect this regional outlook, representing six different countries in the region.
Financial Focus 2022 | Part 1: The global economic crisis resulted in major regulatory reforms affecting the banking industry.
Financial Focus 2022 | Part 2: IFRS 17 implementations are complex. Even for the simplest of insurance organisations, there is a lot to do.
Financial Focus 2022 | Part 3: The ESG concept refers to the three key factors - environmental, social and governance - used to identify the sustainability and social impact of a business.
Financial Focus 2022 | Part 4: Value creation is now more important than ever and should be at the heart of any deal if it is to be a success.
Financial Focus 2022 | Part 5: Under-appreciated catalyst for economic development and poverty alleviation.
Financial Focus 2022 | Part 6: The new International Sustainability Standards Board (ISSB) and what it means to the future of financial reporting.
Financial Focus 2022 | Part 7: On 11 February 2020, the OECD released transfer pricing guidance on financial transactions (the Guidance).
Financial Focus 2022 | Part 8: The business operating environment continues to evolve forcing most businesses to be innovative and agile to adapt to the disruptive environment.
Financial Focus 2022 | Part 9: The Kenyan Data Protection Act 2019 grants every person the right to privacy.