157. AI conversation with Ruan Schutte from Flame Station (a Liberty/Standard Bank initiative)

YouTube video: https://youtu.be/QtJl6jgnJCw

 

In the recent discussion I had on the Flame Station show with Ruan Schutte, we delved into the current state of artificial intelligence (AI) in the financial services sector, particularly focusing on South Africa.

 

We began by acknowledging the substantial budgets allocated by major banks for IT and infrastructure improvements, amounting to around 70 billion rand collectively. However, I expressed my scepticism regarding the effectiveness of these expenditures, as many customers, including myself, still experience poor service levels from these institutions. The challenges are compounded by the highly regulated nature of the industry and South Africa's unique socio-economic landscape, which includes a diverse population speaking numerous languages.

 

A significant point of our conversation was the need for banks to leverage technology effectively to cater to this diversity. For instance, implementing chatbots that can communicate in various local dialects could enhance customer engagement. Despite the potential for hyper-personalization through data analytics, I noted that many financial services still fail to deliver meaningful improvements in customer experience.

 

We also touched on the skills shortage in South Africa, which hampers innovation and implementation of AI solutions. While there are initiatives aimed at upskilling young South Africans, I lamented that many companies prefer outsourcing to cheaper labour markets abroad rather than investing in local talent. This not only stifles local development but also leads to a brain drain as skilled individuals are attracted to opportunities overseas.