Sierra Leone experts look to banks to boost IT

Though none of the 10 commercial banks in Sierra Leone have begun full online operations yet, market observers think financial institutions have a very vital role to play in expanding the country's IT sector.

Every bank situated in Sierra Leone guarantees at least 100 fixed Internet subscribers, according to Prince Ahmed Abe-Osagie, deputy managing director of FGC Wireless. So the advent of more banks, regardless of their scale of operation, will automatically increase the tally of Internet users and other technologies, he said.

"A full-scale online banking operation will force many people to embrace IT," Abe-Osagie said.

Other industry insiders agree.

"The mobile phone industry is already experiencing a fast infusion of technology, but I believe if the banks currently showing interest in Sierra Leone begin operating in the country, then the speed of IT application would be taken over by the banking industry and the mobile phone industry would play the supporting role of providing the mechanism for these banks to reach their customers en masse," said Nana Bampoe, implementation coordinator of the ChildData Project, Plan International Sierra Leone.

With about 60,000 high-end Internet users, about 30,000 users of basic services and approximately 250,000 active bank account holders in the country, Bampoe does not think online banking is in for a hard time in Sierra Leone.

"ATMs, cards, telephony banking and Internet banking are the technological advancements I am expecting in the next few years," Bampoe added. Users will start aligning with companies whose services demonstrate some perceived advantages over their competitors, he said. This will in turn force the industry in general to increase its spending in technology and expertise.

However, at least one telecom systems expert, who agrees that banks with play a role in boosting the IT sector, thinks the functional aspects of running online banking must be addressed first.

"The issue of security and ease of accessing the Internet for online transactions are very vital for online banking to be fully operational," Maxwell Massaquoi said. "How many bank account holders are literate enough to bank online? Are there enough services to provide online access? These are some of the questions banking institutions have to answer if we are talking about online banking in the Sierra Leonean context."

Basic infrastructure need to be put in place to guarantee well-secured transactions as well as to educate users on Internet safety, since trust is a crucial determinant, he said. Massaquoi also mentioned that government must promote Internet use supported by GSM (Global System for Mobile Communications) operators by making Internet facilities available and more affordable.