The 21^st century is the mathematicians’ playground, where complex algorithms and data-driven insights reign supreme. In an era where numbers do not just count but narrate stories, the Strathmore Institute of Mathematics (SIMS) is joining forces with the Kenya Bankers Association (KBA) to explore transformative areas of collaboration in research to shape the future of banking.

Spearheaded by Strathmore University’s Centre for Research in Applied Economics (CRAE), this partnership with the KBA Centre for Research on Financial Markets and Policy promises to unlock groundbreaking research output that provides direct insights to address long standing challenges in banking.

Dr. Caroline Kariuki, Lead of CRAE, emphasizes that the Centre is committed to producing high-quality, evidence-based research in economics and finance, aimed at providing crucial insights for policy-making.

“We are focused on facilitating a joint production of knowledge rather than merely transferring it to policymakers. Our goal is to address societal challenges through collaborative research,” said Dr. Kariuki.

Dr. Samuel Tiriongo, Director of Research and Policy at KBA, highlights the Association’s commitment to bridging the gap between academia and industry. “This meeting marks the beginning of an essential dialogue on how to leverage academic insights to tackle the pressing issues facing the banking sector and the broader economy,” Dr. Tiriongo stated.

One key area of interest is climate financing, its challenges and emerging opportunities. The KBA seeks to develop models that can forecast the impact of renewable energy transitions on the market and economy, addressing both mitigation and adaptation efforts to combat climate change. As this field is emerging, the Association challenges the academia to create robust projections and analyses.

Another significant focus is on credit risk models. By improving the ability to predict and understand ever-changing consumer behavior amidst occasional market volatilities, these models are expected to enhance financial sector resilience.

Dr. Tiriongo is optimistic that the collaboration will produce valuable outputs and data, essential for informed decision-making and driving financial sector development both nationally and regionally.

Dr. Godfrey Madigu, Dean of Strathmore Institute of Mathematics, assured the KBA of Strathmore’s robust capabilities and underscored the importance of such industry-academic partnerships. “Collaborations like this are crucial for addressing industry needs and solving national challenges,” Dr. Madigu remarked.

Together, Strathmore Institute of Mathematics and the Kenya Bankers Association are setting the stage for a new era of synergy between academia and industry, where academic expertise can be tapped to drive innovation and progress in the banking sector and larger economy.

Article written by Stephen Wakhu