Banks will need to redefine their vision and consider a new digital strategy, whilst re-evaluating their competition, according to Mr. Polys Hadjikyriacos, the Chief Business Development Officer at NETinfo, commenting on the current COVID-19 crisis.
“The financial environment is changing, and banks need to co-exist with the fintechs and telcos. Banks will need to find synergies between themselves, their environments and fintech companies,” said Mr Hadjikyriacos during a recent webinar with African bank executives and the media.
At the back drop of this is the reality that the technology generation gap between older and more youthful customers continues to shrink, with those who were not previously digitally engaged being forced to do so, while demanding prompt and direct access to their funds, irrespective of age.
Thomas Yieke, the Business Development Manager and Kenya Country Manager of NETinfo said that the use of internet banking has become very crucial for corporate customers while individual customers prefer mobile app-enabled services. Some corporates, he added, are also keen on how they integrate their systems with fintechs via APIs for better service provision.
Banks will also need to ensure they have the right tools and partners in place in an agile environment. The use of AI tools will become commonplace and omnichannel will be a necessity.
“For instance, KCB currently handles 9 out of 10 of its transactions via digital and online digital platforms. This has been enabled by consistent onboarding of customers and a secure authentication process that takes care of data and information security concerns of customers,” Yieke noted.
The COVID-19 crisis has led to a change not only in the way financial institutions conduct business and engage with their customers, but how employees work and the way consumers manage their finances.
Banks, added the NETinfo boss, can offer their customers unique customer experience based on user’s real-time activity, such as next best screens and actions. This, he noted, would result in increased user engagement and interactions enabling the bank to offer personalized marketing messages during product and service campaigns.
On the future of cash, cheques and cards, Mr. Hadjikyriacos projected that “cards will coexist for some time with more innovative ways of payments such as mobile wallets and e-accounts” while the industry would see a reduction on card transactional charges.
“Even with cheaper rates, card usage is expected to drop significantly. We expect a huge increase in fintech institutions providing more tailored digital services to their customers,” he projected.
Founded in 2000 in Cyprus, with partners and customers based in all continents, NETinfo offers digital transformation strategies for banks and financial institutions, helping them to harness the latest technologies to embrace and meet the needs of today’s digital consumers.