22 December 2024
Three years ago, the Bank of Namibia (BoN) took more than a day to finalise payments to government contractors.
Today, similar transactions are completed in less than two minutes, thanks to the introduction of artificial intelligence (AI) technologies.
Instead of officials driving to the central bank to file documents, this role is now fulfilled by AI robots via an internet-based government portal. One of the AI robots on that central bank portal is called Onguvi (Otjiherero for ‘Eagle’).
AI technologies range from machine learning, robotic process automation, expert systems, virtual assistants, natural language processing and pattern recognition.
While the introduction of AI has raised concern among unionists and workers about potential job losses, the technology has been a game changer in the banking sector.
Through the use of AI, BoN has saved N$7 million by streamlining processes.
Central bank spokesperson Kazembire Zemburuka says the bank has embraced AI and robotics by deploying virtual bots to replace cumbersome, manual tasks.
However, the benefits come with challenges. Zemburuka highlights that it is difficult to integrate new systems into older ones, and cybersecurity risks grow as the bank expands digitally.
Moreover, the bank must also address potential workforce skill gaps and manage the substantial costs of technological upgrades, says Zemburuka.
“Despite these challenges, significant opportunities exist. Emerging technologies offer the potential for streamlined operations and enhanced data analytics, which could improve the bank’s monetary policy decision-making.”
In light of the risks that come with expanding digitally, Zemburuka notes that the bank introduced a regulation which enhances security across the payment ecosystem, requiring two-factor authentication for all transactions.
“These measures are designed to protect, detect, respond to and recover from cybersecurity threats and fraud risk incidents.”
Waldheim Kazenango, manager of internal audits at Standard Bank Namibia, says the bank uses an AI tool called Python to analyse customer complaints from social media platforms like Facebook and X.
“Although still at the infancy stage, the platform is used for data analytics and continuous monitoring.”
These help identify and address risks more quickly.
Bank Windhoek’s executive officer of digital data and customer transformation, Ryan Geyser, says the bank uses AI to track business performance and enhance customer service.
“The skills required to understand and drive implementations are scarce, and these technologies are developing at a rapid pace.”
Geyser says the use of AI will not only save companies money, but also improve customer service and free up time for companies to concentrate on value addition activities.
According to Nedbank Namibia’s 2024 financial results, 70% of its clients were digitally active, compared to 60% at the same time in the previous year.
FNB Namibia’s annual report for 2023 showed that it registered 595 593 clients that use its digital platforms, indicating that more customers are moving their banking activities away from physical branches.
A big part of technology adaptation is that many institutions now use chatbots to give AI-generated responses to customers.
Standard Bank Namibia launched Ti-A two years ago, while Nedbank launched Enbi in 2021.
Ti-A, is a chatbot on WhatsApp that keeps customers updated with its services, offerings and answers frequently asked questions.
Meanwhile, Enbi works on Nedbank’s Money app and online banking platforms to handle daily banking requests and queries.
In 2019, Bank Windhoek introduced the Hey Jude App, a human-assisted AI service, allowing customers to make travel bookings or order home services via text or voice message.
Access Bank, which has a provisional operation licence for six months in Namibia, uses an AI-powered chatbot named Tamada to provide real-time support to customers.
Trade Union Congress secretary general Mahongora Kavihuha says no industrial revolution has had a catastrophic impact on jobs, and AI will not be any different.
He advised employers to invest in lifelong learning to train staff.
Kavihuha says social safety nets are needed as a cushion for some jobs that AI may displace, including unemployment benefits and other support mechanisms.
Meanwhile, Namibian Financial Institutions Union secretary general Asnath Zamuee says the union has facilitated win/win agreements where employees faced job losses due to digitalisation.
“Digitalisation has resulted in the restructuring of the financial sector, with in some cases job losses in traditional occupations. However, this has been very minimal.”
Andreas Amukwa, a part-time cyber security lecturer, and Tinomudaishe Ndhlovu, a senior software engineer, both agreed that the impact on jobs will not be too great.
“AI has the potential to disrupt jobs, especially jobs involving repetitive tasks or roles that can be automated. However, it’s not all doom and gloom.”
Amukwa says AI should be seen as a tool to enhance productivity and innovation rather than a direct threat.
Ndhlovu says to mitigate the threat, human intelligence must be integrated with AI.
IT specialist Marshall Ndashiva believes there won’t be any job losses for at least seven years due to the stage Namibia is at in terms of AI adaptation.
“For now, AI does not threaten jobs, it uses it to simplify tasks and automate processes.”
