Mention the expected change or future trends of ethiopia banking as identified by cepheus capital 2020

Answer 1

Cepheus Capital, an investment advisory firm, has identified several expected changes and future trends in Ethiopia's banking sector for 2020. These include:

1. Increased digitization: Ethiopian banks are expected to embrace digital banking solutions to improve efficiency, reduce costs, and enhance customer experience. This includes the expansion of mobile banking, online payment platforms, and the adoption of other innovative technologies.

2. Financial inclusion: The government's commitment to expanding financial inclusion is likely to continue, with efforts to reach the unbanked population through the use of mobile banking and agent banking services. This will provide greater access to financial services for individuals and businesses in rural areas.

3. Credit growth: Cepheus Capital predicts that credit growth will remain robust, driven by increased lending to individuals and small and medium-sized enterprises (SMEs). This is expected to support economic growth and entrepreneurship in the country.

4. Liberalization of the financial sector: The government has been taking steps to liberalize the financial sector, allowing more private players to enter the market. This trend is expected to continue, leading to increased competition and improved service offerings from banks.

5. Consolidation and mergers: Cepheus Capital anticipates that there will be more consolidation and mergers among Ethiopian banks in 2020. This is driven by the need for larger players to better compete in the market and meet regulatory capital requirements.

6. Emphasis on risk management: As the banking sector grows and becomes more sophisticated, there will be an increased focus on risk management and regulatory compliance. Ethiopian banks are expected to invest in risk management systems and processes to ensure financial stability.

These expected changes and future trends indicate a positive outlook for Ethiopia's banking sector, with advancements in technology, financial inclusion, and increased competition driving growth and development.