The financial sector has evolved over the years with new technologies being introduced in the industry. Current technology trends in the financial sector have revolutionized the way customer service is handled as well as bank transactions. The changes in the banking industry have seen a surge of different trends that have set the pace for business. In Kenya competition on who comes up with the next best application is changing our view of banks.
Here are four digital trends in the banking sector that will change the face of financial services.
1) Digital platform business models
Such business models connect more buyers and sellers in highly scalable ways, changing the way businesses succeed in the digital age. In this type of digital platform banking, service providers create an ecosystem of diverse and multiple industry players in their core business which opens up new growth paths. KCB Bank , for instance, continues to empower its customers by connecting then to credible home investors giving their customers a way to own a home at a cheaper cost.
2) Digital Trust
While we can trust banks with our money, trusting them with our personal data is different issue. Banks can now use data and digital technologies to enhance transactional banking as well as grow relationship trust. Your bank knows more about you and your business in its growth and in its success. Even so now in the digital age banks need to be extra sensitive to customers reducing the risk to exposure. Using data on withdrawals and deposits, banks can make decisions on whether you are eligible for a loan or not.
3) Liquid Workforce
Through digital technology, banks can build flexibility in their workforce. With a more liquid workforce, financial services can improve on innovation (we have already seen this with the rise of mobile banking and innovative banking applications). Equity leads the pack with Equitel; an easy to use interface from which customers can deposit and withdraw directly from their bank accounts. With Equitel (still in its beta stage), Equity Bank clients can check balance, take loans and repay on the same platform.
4) Intelligent Automation
Pairing technology with people to drive value in banks is another important aspect of financial services. It will create a competitive advantage, and banks can now use the new found awareness to power change, growth, and innovation to improve on banking operations. Using individual skill sets can fundamentally change the way the bank employees work in developing a digital culture. Banks such as Chase Bank use such intelligent automation models to grow their business.
Banks in Kenya are not close-minded as evidenced by the different digital applications in the market. Embracing the changes with banking services at the customer’s finger tips has immensely eased transactions. KCB-Mpesa, Equitel, M-Shwari etc. now allow customers to save money and still grow their loan credibility.
Going forward it will be interesting to watch as the banking industry embraces the digital platforms and build ecosystems around these platforms that will eventually help in diversifying their services.