Two-thirds of the world’s 7.6 billion population own a mobile phone. The use of mobile applications is predefining the future direction of insurance, banking and financial industries. Giving the customer more control of their finances.
FINTECH: DISRUPTING THE FINANCE INDUSTRY
Innovative mobile technologies, Fintechs and even solar are just a few key factors that have created an open cross-selling ecosystem within banking and financial services. We are seeing new entrants and collaborations such as app-driven and online-only banking systems. Insurance businesses and retailers are now leveraging their customer base and accompanying data to cross-sell and offer added-value products. Industry-specific banks, for example, banks that incentivise students to pass with decreasing interest rates on their loans. And then some multi-nationals and even parastatals are offering financial services to employees.
CUSTOMER CENTRIC FOCUS
All this choice means customers are no longer bound to traditional institutions, and will bank where the customer, not the money, comes first. This makes for an obvious focus area for banks, which is improved customer service and engagement. These softer and higher level skills will have to be improved and increased within banks to compete with that of retailers and telcos.
ADAPTING TO A CUSTOMER-CENTRIC STRATEGY
To help improve customer experience, as well as combatting security risks, financial services are compelled to implement biometric technology. For example, iris recognition and finger scanning. Likewise, retailers are instituting uncomplicated payment systems by combining biometrics with in-store sensors and tracking devices. These systems offer the customer a hassle-free shopping experience. Automating payments as they exit the store.
IN STORE INNOVATIONS
AI is currently being explored in the form of conversational bots and customer assistants, even within branches, and is estimated to save the industry $1 trillion. But this math is based on current projections without taking into account the exponential changes to come as new digital applications and technologies emerge.
In terms of growth markets, Africa is the second-fastest-growing banking market in the world, focusing on both retail and wholesale banking. More specifically sub-Saharan Africa produces some of the most innovative banking products and services in the world. Informal economies are able to adopt new technologies quicker as most customers don’t bank the traditional way. Overcoming geographical challenges has led to the development of mobile innovations that are both cost-effective and can be deployed at scale.
The digital revolution that is referred to as Industry 4.0 has seen the convergence of major technology innovations reshaping the world at large. In turn this has led to seismic shifts within the banking landscape. It has made the future of banking impossible to predict or anticipate.
At NBS Digital Technologies we apply a future-forward lens that is focused on the opportunity of new adaptable business models. No matter the size of the institution we formulate innovative digital transformation strategies that will propel your business into lead position.