The International Finance Corporation is a subdivision of the World Bank that encourages companies in the private sector in underdeveloped countries with consulting services, investment, and asset management services. The corporation is headquartered in Washington, D.C. in the United States.
As a member of the World Bank, it initiated the DigiLab Finance training and support program to implement digital transformation as part of its goal to “create markets” to promote opportunities for all. The company offers technical guidance, expertise, and innovation that builds opportunities for financial prosperity. In 2019, the company offered $406.7 billion in SME loans.
The banking sector plays a key role in the growth of the continent. In a plot to the economic rebound, the country is cushioned by innovators in the fintech industry. The country has seen major changes in the implementation of digital services by nearly 200 fintech firms. The challenges in the financial sector in Africa, as per the report, are:
- The slow pace of adopting technologies which are essential to speeding up to stimulate financial inclusion.
- Poor governance
- Insufficient funds
The Middle East has undertaken several measures for financial inclusion by bracing for new technologies, leading to change, and seeking avenues for potential expansion. The challenges in the financial sector in the Middle East are:
- Lack of flexibility to adapt to new banking methods.
- To adopt digitization, there is a high demand for learning new technologies.
- The financial sector requires streamlined operating models.
The training and development program, DigiLab Finance, equips financial institutions with software tools and helps them to adapt to new technologies and strategies to boost digital transformation.
The other countries who were part of this trend development program were Latin America and the Caribbean in 2018 and Europe and Central Asia in 2020.
“Coronavirus has changed the way we live and work and has made the digital transformation for financial institutions more important than ever. Banks across the region have already made good progress in adapting to new technologies, although the implementation of a full digital transformation remains a challenge. The DigiLab program will help improve this aspect of implementation and is part of IFC’s broader strategy to support a stronger, more sustainable financial sector,” RiadhNaouar, the IFC’s manager for Africa and the Middle East, said.
A total of 23 financial institutions got the support and developmental strategies that enabled them to grow businesses with innovative products that help customers and create a new clientele.
Due to the pandemic, the digital transition has been spurred across all sectors, especially in the MENA region. The impact is stronger in the financial sector.
International Business Machines Corporation, Deloitte Touche Tohmatsu Limited, CGI Inc., Wipro Limited, Accenture PLC, are a few dominant players in the MENA region in digital transformation.
The impact of cloud computing, mobile devices, social networking, and big data leverages the competitive edge in the regions due to a rise in internet usage.
The global Digital Transformation Market is likely to grow at a CAGR of 16.1% from 2021-2026 to reach the US $3,693.8 billion by 2026.
