We are building a FUTURE-FIT BANK

In our fast-paced world, driven by IT and innovation, only a dynamic and agile company can stand the test of time. The financial services sector has been marked by a sweeping digital revolution, changing the traditional system of banking into one driven by technology and innovation. This has no doubt led to mergers, acquisitions, and sometimes an outright sale.

Debub Global Bank Ethiopia is one of Ethiopia's leading banks that is adapting expertly to the ever-evolving banking landscape. In this exclusive interview the bank's president, Dr Tesfaye Boru, talks about his efforts in building a 'future-ready' organisation. The financial sector is known for its need for committed and competitive leaders who are ready to make the difference, and your recent Special Commendation Award from the African Leadership Magazine shows you are cut from that cloth. How were you able to become the celebrated leader that you are today?

First of all, I would like to thank Africa leadership Magazine for your extraordinary commitment to tell the African story to the world, celebrating African leadership, and specifically for your recognition.

At the heart of a successful leadership lies a deep passion and commitment to serve, care for people, a bold vision for the future and conscious commitment to lifelong learning.

Leaders work through other people – hence the care for others is important. I would like to think I am successful at creating an environment where people feel valued and truly believe in the bank's mission and vision.

This in turn has contributed to create dedicated management and employees that act as one to innovate, ensure customer excellence and ultimately deliver value to stakeholders. I believe adopting a future fit strategy accompanying development initiatives and organisational structure that helps unleash employees' potential have also contributed to this success. Your experience in the financial sector cuts across 16 years of solid banking experience and your leadership approach is defined as a strategic and collaborative pattern through which you achieve effective strategising and process improvements. Why do you adopt the use of such innovative means to lead and how has it helped shape your experience at Debub Global Bank?

As you have said, I have worked for more than 16 years in the financial sector in different capacities, including at the National Bank of Ethiopia. I have always been keen to keep the balance between having the bigger picture and being detail oriented.

This strategic mindset has helped me understand the overall market dynamics, identify competitive advantages, and make bold moves to choose the road less travelled.

Specifically for my current position, applying creativity to my leadership style helps me to create my own unique style that aligns with my own strategic goals, long-term objective and the needs of my staff, esteemed customers and other stakeholders.

In line with this, at DGB, we have always sought to innovate and explore the road less travelled to create sustainable value for our customers and stakeholders.

On the other hand, we have strived to cultivate a

culture of continuous process improvement to streamline the efficiency of existing business processes of the bank in order to deliver improved customer experience.

In addition, process improvement initiatives have contributed to significant reduction in bad costs thereby enabling us to provide efficient services at affordable rates. The Governor of the National Bank of Ethiopia, H.E Dr. Yinager Dessie, mentioned recently that the Ethiopian banking sector has registered a remarkable growth despite the fact that it faced various challenges such as COVID-19, internal conflict, and the Ukraine-Russia crisis. In the face of global recession and economic challenges like inflation, how have you been able to stay afloat with Debub and consistently deliver in customer/client satisfaction?

The past two or three years were marked by challenges resulting from various domestic and global crises. Some of the measures taken by the NBE to counter these challenges supports the banking industry but others contributed to creating a difficult operating environment.

Despite this, it has been a period where we managed to align our strategy and operating structure to help us navigate through the challenging market dynamics, pursuing growth and expansion, and continuing to ensure service excellence to uphold our commitment of keeping customers at the center of our business.

For DGB in general and me as a the president and chief executive, in particular, the previous year was also characterised as a time of reassessment and repositioning and taking proactive steps to lay the foundations for becoming a future-fit bank. What particular policies or marketing decisions help you stay ahead of your competition in the Ethiopian banking industry, and why do your clients take you as the Bank of Choice to deal with?

As I stated in the previous answer, the preceding year was a period of reassessment and repositioning. Accordingly, our new strategy that has four pillars, strong and sustainable financial performance, driving service excellence, enhancing digital capabilities, and building human capital that possess the right skillset; and that has helped us to stay ahead of the competition."

To regulate the economy, government also issues different directives and regulation, like Note Redemption; repeal NBE bill, and minimizing reserve requirements. The limits on Birr and FCY holding supported the bank to stay profitable and competitive in the industry. What peculiar challenges have you been faced with in your role as the President of Debub Global Bank, and how were you able to navigate these situations with favorable decisions for the Bank?

Cognizant with new, conventional and IFB bank establishment, the banking industry in general has been highly affected by shortage of skilled manpower - and DGB was no exception, which hindered the bank to achieving its major strategic pillar, i.e. business expansion.

To solve this challenge, we as a team opted for a strategy of recruiting new graduates and on-thejob development programmes aimed at equipping them with essential banking skills and inculcating the bank's culture and values.

To retain existing talent, we have started up-skilling programmes to prepare our people for increasingly senior roles, implemented succession plans, and introduced competitive compensation and benefits structure.

The other major challenge we have encountered in the previous period was shortage of forex. Forex has been one of the main contributors to profitability for banks in Ethiopia.

To address this condition, we have introduced innovative products and services to attract more forex accounts.

Also, since retail banking is directly attached with deposit mobilisation and loan provision, we have implemented a strategy that helps to maximise our income from loan and advance, mobilising more deposit and minimising the dependence on hard currency. What particular policy changes do you look forward to having in the Ethiopian Banking sector and how will this revolutionize the industry in your opinion?

In order to provide better and a more accessible banking experience, the Ethiopian government has implemented several reforms and policies, especially over the last two years, which helps the country to deal with any change in economic conditions and demographics.

Most policy changes I have been wondering for Ethiopian banking sector are already been implemented over the past two years, like NBE allowed to establish fully-fledged interest free banks; the establishment of capital markets; and opening the Ethiopian banking sector to foreign participation. This all-new regulation makes the banking industry in Ethiopia very competitive.

In my opinion, up to fully implemented all these revolutionary policies, the banking sector do not need a new one except some directives and circulars that helps to smooth and respond to any macroeconomic changes and turbulences. How will the commendation you have received impact your activities going forward as President of Debub, and how does it inspire other people at your institution to do better?

I believe this recognition will inspire me, my team and the bank's community for more challenges, bold moves and in our journey to position the bank among the leaders in service excellence and stakeholder value.