Michelle Knowles is managing executive for Trade and Working Capital (Pan Africa) at regional winner Absa Group. She discusses how innovation and technology is changing finance in Africa.
Global Finance: How is innovation transforming banking in Africa?
Michelle Knowles: Innovation in Africa has created a more inclusive and efficient financial ecosystem by driving economic growth and empowering emerging populations. At Absa, our solutions help our clients’ businesses grow so that the communities where they operate can thrive. We believe that innovation will further help support African trade, which also enables economic growth.
GF: Where does technology and innovation have the biggest impact within finance?
Knowles: Digital banking solutions have opened doors for millions of people who lacked access to traditional banking services. AI and machine learning help analyze patterns, detect anomalies, and prevent fraud more effectively while enhancing our sustainability efforts. Seamless digital platforms like our Trade Management Online channel are a game changer, elevating customer service while enhancing user engagement.
GF: What makes Absa different from its competitors?
Knowles: Absa has a client-centric, digitally enabled model. Preparing for the “client of the future” means continuously enhancing our capabilities and access points through APIs and online and mobile platforms, providing tailored service options to our clients, and sharing and leveraging industry research and insights.
We are a data-led, customer-focused business, and by streamlining our products in different markets, we create a consistent experience for customers across Pan Africa. Our technology, products, and processes facilitate access to trade finance, which is key to facilitating trade flows. Technology investments like APIs and the ability to collaborate closely with key fintechs help us with the much-needed digitization of trade finance and to future-proof our trade finance systems.
GF: How is Absa innovating in trade finance for Africa?
Knowles: By automating and streamlining processes, Absa can significantly reduce costs and increase the availability of financing for businesses. Our digitization strategy for trade finance includes a client portal built on open-source architecture so that the bank can integrate with various ecosystems through APIs, ensuring efficient connections with strategic partners and systems. With big data and AI, we are optimizing key processes, automating compliance checks, and enhancing risk management. Absa also collaborates with development finance institutions and fintechs to digitally transform trade finance and ensure that innovative technologies are effectively implemented.
GF: How are you working with African entrepreneurs?
Knowles: There are several promising opportunities, particularly in areas that address key challenges and leverage the continent’s unique strengths. The Youth Entrepreneurship Programme, a collaboration between Absa and the Young African Entrepreneurs Institute, is a flagship initiative designed to bridge the gap between young innovators and opportunities so they can establish thriving businesses. The program offers business advisory support, skills development, mentorship, and funding to help youth transition from innovation to formalized businesses.
Also, Absa Bank Zambia’s Mosi-Oa-Tunya Innovation Hub serves as an incubator for local businesses in that country’s the tourism and agriculture sectors, providing training, mentorship, and digital tools to help entrepreneurs develop their products or services.
GF: How does Absa use technology to overcome business challenges?
Knowles: Facilitating access to trade finance is essential for supporting African trade and crucial for trade flows. And trade finance has consistently been a fundamental component of Absa’s transactional banking services. Absa continues to observe growing demand for its trade finance solutions and has intensified its efforts to become a leading provider of trade finance across the continent.
Additionally, Absa supports the African Continental Free Trade Area (AfCFTA) agreement, which is a vital step in increasing intra-African trade. We understand that digitizing trade finance helps us expand and simplify access to finance. To date, Absa has implemented Trade Management Online, a secure online banking platform where clients can initiate, receive, and manage the complete lifecycle of trade finance products and services.
We have also provided meaningful efficiency gains and improved risk management by, for example, integrating Optical Character Recognition and workflow automation into our processing systems. This has significantly reduced manual intervention, improved turnaround times, and enhanced the accuracy of documentation handling. Our digital and data-led approach to risk management enables us to proactively monitor exposures, client behaviors, and trends, which empowers our teams to make faster and more informed decisions.
