The company, which operates as a compliance-first, local-first model with regulated coverage across Europe, Latin America, Nigeria, and the United States, provides fintech platforms (including payroll, cross-border payments, digital banking, and spend management solutions) with the ability to issue globally accepted payment cards, funded directly from stablecoins, bridging the gap between on-chain settlement and real-world payments.

With this latest round, Kulipa’s total funding reaches USD 9.2 million. The company wants to use the capital to create solutions that will make stablecoin spending seamless and widely accepted, just like traditional card payments, helping the fintech industry to operate as a fully integrated model, where industry players will act like on-chain-enabled financial institutions.

Kulipa’s successful fundraising also comes amid stablecoins becoming the new normal in the virtual payment space, settling more than USD 300 billion daily. However, the cryptocurrency still has a drawback: a lack of efficient infrastructure connecting on-chain settlement systems with regulated card networks.

“Existing solutions are often fragmented, capital-intensive, and dependent on prefunded structures and region-specific licenses. As regulatory clarity improves worldwide, fintech companies increasingly require compliant, scalable issuing infrastructure to convert stablecoin balances into usable financial products,” reported Africa Business.

To resolve this problem, Kulipa’s stablecoin-native issuing platform has been tailored to address challenges such as capital efficiency, regulatory compliance and global scalability. Fintech partners using the company’s solution are now launching payment programmes funded directly from stablecoin balances, supporting rapid prefunded deployments and deep wallet-native integrations.

“Stablecoins have proven their value as a settlement layer, but using them in everyday financial products is still early. Card issuance is the bridge between on-chain balances and real-world payments. We built Kulipa to give regulated fintech platforms the compliant, capital-efficient infrastructure they need to operate at a global scale,” said Axel Cateland, Founder and CEO of Kulipa, while interacting with Africa Business.

By verifying balances and settling transactions on-chain, Kulipa has reduced the fintech industry’s reliance on collateral-heavy prefunding models and enabled more sustainable scaling. Stablecoin cards issued via Kulipa can be used everywhere, including retail payments and ATM withdrawals. Kulipa also assumes the role of performing fraud liability, removing a massive operational burden for fintech partners.

The post Stablecoin card issuer Kulipa raises fresh funding appeared first on International Finance.

For people without access to traditional banking services, e-wallets provide an alternative by letting users save, manage, and transfer their financial assets. It’s common for consumers to handle their financial affairs online these days, including applying for loans, moving money, and checking balances.

This is a reflection of a fundamental change in consumer behaviour, with accessibility and convenience taking centre stage. Furthermore, the enhanced security features they provide, like biometric authentication, which uses an individual’s unique physiological or behavioural characteristics for authentication and security, and tokenization, which enables the digital banking system to identify and process a transaction without disclosing user data, have helped allay worries about fraud and identity theft and have encouraged further adoption of the technology.

There is a noticeable trend among younger generations to utilise digital wallets daily. The United Kingdom’s 2024 digital banking data show that younger generations account for a larger proportion of bank accounts that are exclusively digital.

In 2024, half of millennials (50%) and more than half of Generation Z (55%), the age group between 18 and 26 years old, will have at least one bank account that is exclusively digital. In contrast, only 21% of baby boomers and members of the silent generation, as well as 34% of Generation X, have bank accounts that are exclusively digital.

Not only do 18% of millennials and Generation Zers, but also 15% of Generation Xers, who do not currently have a digital bank account, plan to establish one at some point in the future.

Traditional surpasses digital

In 2023, a Forbes Advisor study on digital wallets found that 53% of American consumers preferred using digital wallets over traditional payment methods. Generation Z was the group most likely to use digital wallets as their primary means of payment for travel (86%) and shopping (91%).

Tech behemoths like Apple, Google, and PayPal have established the standard in the United States with cloud-based digital wallets that provide smooth, instantaneous transaction capabilities. Due to their large user bases and access to cutting-edge technology, these companies have established household names for platforms like Apple Pay, Google Pay, and PayPal, which provide customers with safe and effective online and in-store payment options.

Similar to this, the United Kingdom has seen a notable increase in the use of digital wallets, thanks to a supportive legislative framework and a thriving fintech industry. Businesses like Wise, Monzo, and Revolut have completely changed the market with features like budgeting tools, real-time notifications, and affordable foreign transfer rates. The open banking policy in the United Kingdom, which encourages competition and innovation, is partially responsible for the recent wave of innovation.

Overall, while the development of digital wallets and payments has paralleled in the US and the UK, there are also distinctions influenced by variables like legislation, customer behaviour, and market dynamics.

The Financial Conduct Authority (FCA) has been instrumental in fostering competition and innovation in the financial services industry, making the United Kingdom a more hospitable regulatory environment for the development of digital payments.

On the other hand, the United States regulatory environment is more dispersed, with several regulatory agencies managing various facets of the financial sector. This has occasionally stifled innovation.

Quicker innovation

The Single Euro Payments Area (SEPA), Payment Services Directives 2 and 3 (PSD3), and other European banking laws are not mandatory for the United Kingdom to comply with, but they have still sped up innovation and digital banking adoption in the country.

In many ways, the United States has not adopted new financial capabilities at the same rate as the United Kingdom because European banking and payment regulations have had less of an impact outside. In the coming years, we anticipate that nationwide regulations will accelerate the trend of American customers migrating to digital banking and payments.

According to Eric Bierry, CEO of Sopra Banking Software, a global financial technology company, there is a significant market demand for instant payments, particularly in the United States. Major players in this space include Zelle, Paypal, Square, Visa Direct, Mastercard Send, Venmo, and The Clearing House’s RTP network, which collectively process more than $900 billion in real-time transaction volume annually.

However, even though the Faster Payments Service has been facilitating speedy payments across numerous UK banks for more than 15 years, current recommendations aim to further strengthen consumer security for immediate payments in light of the rise in fraud and scams.

Although digital banking may be reaching saturation in the UK and Europe, Alex Reddish, managing director of UK fintech company Tribe Payments, emphasised that the industry’s evolution is far from finished.

He asserted that “continuous innovation, regulatory advancements, and altering customer preferences will determine the future of banking in Europe and the UK, ensuring that the industry stays dynamic and responsive to future demands.”

Reddish noted, however, that while the market has always demonstrated its capacity to quickly adapt and leapfrog stages like contactless payments, which the UK and Europe pioneered, some growth is likely to be much slower in the US, the largest financial services market in the world.

Collaborations among financial institutions, merchants, and technology companies have been essential in advancing the acceptance of digital wallets.

Reddish continued, “These partnerships have strengthened acceptance networks, increased consumer knowledge of the advantages of mobile payments, and provided incentives to users in the form of discounts and prizes.”

Security still the key issue

Future developments in the field of digital payments are probably going to bring about further innovation and expansion for both the US and the UK. However, difficulties still exist despite these developments, especially in the fields of cybersecurity and regulations. The financial services sector is the second most affected by cyberattacks, after the healthcare sector, in terms of cost per breach, according to an IBM data breach study from 2023.

Chris McGee, managing director of AArete, a worldwide management and technology consulting organisation, emphasised that cybersecurity is still a big trend in digital banking and that security is still a top priority in all countries.

“Banks’ use of Artificial Intelligence (AI) in digital banking is evolving in various areas, including threat detection, thanks to the adoption of AI by banks,” the official noted.

Artificial intelligence (AI) can help banks comply with an increasing number of rules by detecting fraud and other possible threats faster than ever before. AI will become more and more important in safeguarding consumer assets and personal information, as well as, more importantly, in gaining their trust, particularly as consumers continue to experiment with using digital wallets to make purchases.

Similarly, Bierry disclosed that generative AI will be a significant obstacle for American and British institutions.

“Banks are concerned about the potential effects of generative AI tools on security and the banking workforce as a whole, even though they recognise the evident financial benefits of AI. In addition to onboarding the tools themselves, banks will need to invest time in training personnel and customers about the implications of AI technologies. Although incorporating GenAI into banks’ operations will undoubtedly provide obstacles, the technology also presents a huge potential for them,” the speaker stated.

“Banks must stay informed about new rules and procedures as they emerge to ensure compliance. In response to a number of banks failing in 2023, authorities plan to implement a number of additional measures this year with the goal of ensuring that anything similar never occurs again,” Bierry noted.

Bierry predicts that 2024 will see regulators concentrate on laws safeguarding customers and their financial data, particularly as new financial services and products arise in the open banking and artificial intelligence eras.

Enticing objectives

Similarly, Maureen Doyle-Spare, the head of insurance, asset, and wealth management at UST, a US provider of digital transformation solutions, emphasised the critical importance of security, given that digital wallets are highly attractive targets for cyberattacks due to their storage of sensitive financial data.

“Multi-factor authentication, strict monitoring, and strong encryption are necessary to protect user data. Furthermore, interoperability presents difficulties because improving the user experience requires flawless compatibility across different digital wallet platforms. Scalability is also a critical issue because growing transaction volumes necessitate sophisticated infrastructure that does not sacrifice speed or dependability,” Maureen remarked.

For banks and fintech companies worldwide, modernising antiquated banking infrastructure is a major challenge. To realise the full potential of digital banking, the American and British markets are probably going to have comparable obstacles to overcome.

Neobanks will face challenges in navigating regulatory frameworks largely created for traditional banks, which can be resource-intensive and impede innovation, in addition to challenges in differentiating themselves in the market due to the commoditized nature of digital banking services. Challenges to profitability can include low revenue per client and high acquisition costs.

The rapid evolution of digital wallets and real-time payments is transforming the global banking landscape, driven by consumer demand for convenience, technological advancements, and regulatory shifts. Younger generations in the US, UK, and Europe are spearheading the adoption of digital banking, compelling traditional financial institutions to innovate or face the risk of falling behind.

However, this digital transformation is not without its challenges. Security concerns, evolving regulations, and the need for the modernisation of outdated banking infrastructure are significant hurdles that financial institutions must navigate. As digital payments continue to grow, collaborations between fintech companies, merchants, and regulators will play a pivotal role in shaping the future of banking. AI-driven solutions and advancements in cybersecurity will be critical to maintaining consumer trust and ensuring the sector’s ongoing innovation and resilience.

In the coming years, digital wallets and real-time payments will likely continue reshaping the banking industry, making financial services more accessible and inclusive, especially for unbanked populations. As younger generations drive adoption, traditional banks must prioritise digital transformation to stay competitive. However, the increasing reliance on mobile technologies and cloud-based platforms will expose financial institutions to greater cybersecurity threats.

The use of AI, while promising for enhancing security and efficiency, also brings its own challenges, such as data privacy concerns and potential job displacement. As regulations evolve to address these issues, banks must balance innovation with compliance, ensuring that growth in digital banking remains sustainable, secure, and consumer-focused.

The post Digital wallets: Banking goes Gen Z way appeared first on International Finance.

Velmie was founded in 2010 as a software development company, initially delivering solutions across diverse industries including banking and fintech.

Over time, Velmie gained a profound insight into the technological landscape of finance and identified the significant challenges organisations face in meeting customer demands and staying competitive.

Motivated by this understanding, Velmie shifted our focus to developing products specifically designed to empower financial companies to innovate, maintain agility, and prioritise customer-centricity. Since 2018, the company’s dedication has been exclusively centred on fintech.

Slava has been instrumental in shaping Velmie’s growth trajectory, overseeing everything from strategic direction to hands-on involvement in sales, marketing, partnerships, product development, and customer support.

He is passionate about leveraging technology to revolutionise the financial sector, driving innovation and unlocking new opportunities for businesses and consumers alike.

In an exclusive interview with International Finance, Slava Ivashkin, Founder and CEO of Velmie, discusses the company’s digital banking platform, its recent partnership with Unlimit, advancements in the fintech industry, innovative initiatives, and much more.

How does Velmie’s modular cloud-native digital banking platform differentiate itself from traditional banking software solutions?

Our platform differentiates itself from traditional banking software solutions by being designed to serve next-generation products focused on delivering superior user experiences, maximising efficiency, and scaling through expanded partnerships. These principles have been the foundation of our product from the beginning and continue to guide us as we develop new versions of the software.

Additionally, we follow very different policies and procedures for software delivery and configuration. What used to take many months with legacy platforms due to their overall complexity now takes just days or weeks.

This makes Velmie the top choice for institutions and ambitious startups seeking to enter the market quickly and scale their products seamlessly.

Can you provide details about Velmie’s API orchestration layer? How does it facilitate streamlined access to payment services?

Bank-fintech partnerships are cumbersome nowadays, and we provide technology to facilitate this process. As part of our platform offering, the API orchestration technology allows streamlined access to leading banks and other service providers. Through our focused efforts in building and maintaining a robust partner ecosystem, our clients receive tremendous advantages when launching new products with us.

What are some key features of Velmie’s digital banking platform that contribute to its scalability and performance?

Our platform boasts a modular cloud-native architecture, guaranteeing consistent and efficient deployment across diverse environments while offering effortless customisation and scaling. Additionally, our advanced load-balancing and auto-scaling capabilities, combined with an API-first approach, ensure seamless integration and optimal performance, even under varying demands. This makes our platform the ideal choice for financial institutions seeking reliability and scalability.

Can you provide examples of the types of fintech solutions that Velmie has helped to build for established financial institutions?

There are primarily two types of solutions we offer. The first involves digital transformation as companies realise their current tech stack no longer meets their needs and is difficult to maintain. This is a very common problem, and we solve it by offering a solution that allows companies to start using a modern platform without requiring a complete migration, which is the most daunting prospect for any organisation. With us, both platforms can operate and evolve in parallel.
The second type of solution is for new projects we build for startups. Here, you will find a great variety of solutions, including neobanks, Web3 banks, microlending, remittance, savings and investments, private banking, and more.

In what ways does Velmie customise its banking software solutions to align with the unique requirements of ambitious startups?

There are endless customisation possibilities. Our portfolio showcases numerous projects that go beyond the scope of a typical banking app. Unlike many companies that offer customisation services reluctantly, we thrive on helping startups build unique and innovative solutions. We not only love this challenge, but we also excel at it, thanks to our extensive in-house team and vast experience. We reject the notion that one size fits all and instead focus on creating products that are easily customisable. Both our backend and frontend apps feature modularity, allowing us to implement even significant changes with ease and efficiency.

Additionally, we were among the first in our industry to adopt Flutter, a cross-platform mobile technology that simplifies and enhances the process of building new features, running trials, conducting A/B tests, and more—all without compromising security or performance. This approach ensures that we can quickly and effectively tailor our solutions to meet the unique requirements of ambitious startups.

Could you tell our readers about Velmie’s recent partnership with Unlimit?

We’re excited to commence our partnership with Unlimit, as many of our clients select it as their financial services provider. However, they often face challenges in finding a suitable technology partner to implement their product vision with the assistance of Unlimit BaaS.

This is where we step in. Collaborating with Unlimit, we offer a plug-and-play solution that significantly reduces time-to-market and streamlines the process of going live. Instead of attempting to develop apps and back-office systems independently, clients can access a ready-made technology solution that is proven, supported, and easily customisable.

In what ways does Velmie ensure that its platform remains secure and compliant with financial regulations?

At Velmie, we employ proven methods and solutions to ensure our platform remains secure and compliant with financial regulations. One of our key initiatives involves the successful implementation of ISO 27001 policies, which guarantees information security at every level of our operations. This framework allows us to establish and maintain robust security controls, ensuring the confidentiality, integrity, and availability of sensitive data.

Furthermore, we adopt a single-tenant approach within our platform architecture. This approach allows us to isolate each client’s data, providing greater control over its security and minimising the risk of unauthorised access. By maintaining dedicated environments for each client, we can tailor security measures to their specific needs and ensure compliance with regulatory requirements.

How does Velmie stay ahead of the curve in terms of innovation and technological advancements in the fintech industry?

Staying ahead of the curve in innovation and technological advancements is ingrained in our approach. Our clients serve as the catalyst for our continuous innovation journey, as they often push the boundaries with their implementation of highly innovative solutions aimed at disrupting various sectors within financial services.

Thanks to their inspiration and feedback, we’ve expanded our offerings to include a diverse array of cutting-edge technologies such as AI, digital currencies, advanced biometric authentication methods and more.

However, our commitment to innovation extends beyond technology alone. We also recognise the importance of updating policies and processes to support our clients in achieving better efficiency and scalability. By constantly refining our operational frameworks and adapting to evolving regulatory landscapes, we ensure that our clients can leverage our solutions with confidence, knowing they are backed by robust governance and compliance measures.

In essence, our ability to anticipate and embrace emerging trends, coupled with our dedication to enhancing operational effectiveness, positions Velmie as a trusted partner for fintech innovation and advancement in the ever-evolving financial services landscape.

The post Velmie empowers startups with innovative solutions: CEO Slava Ivashkin appeared first on International Finance.

Take British banking giant Barclays for example. Due to lower earnings and the resultant cut in its profitability forecasts, the venture is now mulling to make its operations more “cost-efficient and productive”, through structural changes in its business. On the other side of the Atlantic, we have PNC Financial Services, which has launched efforts to reduce its operational costs by $400 million by 2023 end.

United States-based Metro Bank too has launched a multi-million pound cost-cutting drive. The challenger bank will reportedly slash around £30 million in costs a year from 2025 as part of its restructuring efforts.

As per CNBC, The largest American banks are laying off workers right now, despite the country’s economy maintaining a resilient outlook. The only exception here has been the JPMorgan Chase.

“Pressured by the impact of higher interest rates on the mortgage business, Wall Street deal-making and funding costs, the next five largest U.S. banks have cut a combined 20,000 positions so far this year (in 2023),” the media outlet commented further.

While the financial industry may feel the urge to tighten their digital expansion efforts too amid the ongoing economic volatility, it may not be a desired move.

Why so?

As per the Forbes Advisor’s ‘US Consumer Banking Statistics 2023′, majority of the Americans have now embraced digital banking.

“As of 2022, 78% of adults in the U.S. prefer to bank via a mobile app or website. Only 29% of Americans prefer to bank in person,” the report commented further.

Also, one cannot simply deny the positive disruption digital banking has brought into the market, as customers can now perform account-related functions from their homes, while financial institutions, using elements like AI and Machine Learning, can understand their customers’ financial needs in a better manner than before, research market trends and then offer tailored solutions.

To cut the long story short, banks can’t afford to scale back their digital transformation goals. Millennials and Gen Z are preferring banks with sharp digital presences.

“Banks must develop a clear and cohesive strategy to differentiate their digital products and enhance customer experience and innovation. In today’s digital banking landscape, it’s even more crucial that banks find a way to set themselves apart from the pack,” says Peter-Jan Van De Venn, Vice President, Global Digital Banking, Mobiquity, in his article on Global Banking and Financial Review.

While the ongoing economic headwinds may prompt banks to reassess their business moves, halting digital initiatives should not be on that priority list.

“You may not be losing, but you’re not gaining any ground either. Meanwhile, your competitors are running laps around you. Banks indeed need to be extra diligent about spending, but cutting costs shouldn’t come at the expense of serving customers and providing engaging, personalised digital touchpoints,” Van De Venn remarked further, as he noted, “Customers today are more likely to switch banks than they were in the past and digital experiences play a crucial role in their decisions. In fact, four in 10 customers say they would consider switching banks based on digital features.”

Instead of scaling back digital investments, banks should allocate resources strategically. This will help the banks strike the right balance between short-term gains (saving costs during economic headwinds) and long-term growth.

How to do so?

Van De Venn believes that the competition in the digital era has become fierce, with disruptive entities like neobanking platforms and digital wallets challenging the legacy banks with an “abundance of financial options” to the 21st century tech-savvy crowd. The more disruptive solutions these digital ventures offer, the more they stand out from the rest in the domain of digital banking.

In addition to competing with other financial institutions, banks are also being compared to tech giants like Google and Facebook. Customers now expect the same level of service and convenience from their banks as they do from technology companies. But with a clear digital roadmap, banks can create unique and compelling experiences that attract new customers and retain current customers amid economic turmoil,” he stated further.

In fact, Mobiquity research shows that nearly 80% of digital banking features are virtually the same. Van De Venn’s advice to the banks is simple-instead of developing standard features and functionalities, these institutions can efficiently allocate resources by focusing on key areas of differentiation.

“As competition stiffens and the digital service offerings excel, pressure is on banks to provide bespoke value-added features for customers. The challenge for banks is to focus their digital transformation budgets on the 20% of value-added functionalities to enable differentiation from the competition,” the Mobiquity report noted further.

The study suggested the financial sector focus on three key pillars in the form of ‘Customer Experience Strategy’, ‘Digital Products & Services’ and ‘Digital Branding & Marketing’, to make their digital solutions instant hit.

“Truly successful digital products are rooted in human behaviour, emotions and needs. Product building evolves with the product itself, keeping investments under control and focusing on the value the solution brings to customers and businesses themselves. Great products need to be matched with great data-driven marketing,” the report added further.

While features like online and mobile account management, transaction overviews, and card management are integral to a digital banking app, Van De Venn doesn’t advocate banks to build these features in-house, at a time when the market has solutions in the form of ‘Open Banking’, where third-party service providers are getting access to customer data and transactions via APIs, thereby allowing them to offer personalised services and expand their range of financial products. Van De Venn believes this will free up a bank’s operational budget to some extent, which can be used to focus on fine-tuning its flagship products and features.

We already have the United State Bank example, which in the first half of 2023, partnered with digital banking provider, Bankjoy to deliver online and mobile banking experiences for its account holders. The customers now have access to Bankjoy’s end-to-end digital banking platform, which includes a robust suite of mobile and online banking features, integrated loan applications, and other advanced functionalities.

“One size does not fit all in the banking world. What works for one institution may not necessarily work for another. That’s why it’s vital to understand your brand promise — and build digital offerings that align with your unique value proposition,” Van De Venn gave another important tip to the industry, while talking about one of Mobiquity’s neobank customers successfully targeting tech-savvy millennials with innovative offerings, including an augmented reality feature that allows users to project their future bank cards using their iPhones. This unique customisation option has helped the venture carve a distinct identity as a leading digital innovator.

The Vice President of Mobiquity’s Global Digital Banking also asked the banks to align their digital innovations with their business goals. These innovations should be result-oriented, which apart from contributing to a financial institution’s overall brand vision should differentiate it from its rivals. Before banks undertake digital innovation, it’s important for them to define the moves’ goals clearly, apart from determining the Key Performance Indicators (KPIs) of the digital innovations, for monitoring their progress and market challenges.

“By considering your organization’s business goals and objectives — and the technology necessary to support that endeavour — you can create a digital strategy that strikes the right balance between innovation, viability, and profitability,” Van De Venn stated further, while adding that these innovations should give top priority to enhance customer experiences. Successful digital banking projects are those which understand the customer moods and their financial needs in a proactive manner, before charting out the tailored products through leveraging the predictive data analysis method.

21st century customers blend digital banking with in-person experiences. Whether they are banking on the app, online, over the phone, or at a branch, or combining any number of these touchpoints, banks need to provide seamless, intuitive, and personalised customer experiences across channels.

“You can offer options for customers to initiate the account opening process online, upload necessary documents, and then schedule an appointment at a branch to finalise the process,” mentioned De Venn, while advising the banks to set the stage for long-term growth and resilience by maximising the Return on Investment (ROI) on digital initiatives.

“Smart, strategic digital roadmaps focus on areas where differentiation makes a difference and provides greater value for your customers and your organisation,” he commented, while adding, “By identifying and enhancing points of differentiation features, you can create a distinct and compelling digital experience that resonates with customers, strengthens your brand, and captures new business — no matter what’s around the corner.”

Some perfect examples

Let’s talk about Emirates NBD, a leading Middle Eastern bank which serves 17 million customers across 13 countries, which, despite the ongoing global economic headwinds, has been elevating its app into a cutting-edge digital banking service provider. The innovation is consolidating various other solutions like retail banking and deals, under one unified app.

Additionally, the venture has transformed its wealth management services from an offline affair to a fully online one by integrating it into the same app.

Emirates NBD’s mobile app has become the preferred choice for financial and investment management for retail and private banking customers in the Middle East region.

The app, named ENBD X, is a cloud-native one offering seamless performance, user-friendly experiences, and top-notch digital security, apart from emerging as one of the largest array of products and services in the market, where apart from performing routine transactional functions related to accounts and payment cards, downloading account statements, and viewing images of cheques deposited in their accounts, the customers are getting tailored financial products as per their needs.

The digital wealth platform allows Emirates NBD’s customers to trade securities and exchange-traded funds on local and global exchanges, apart from granting investors access to over 11,000 global and 150 regional equities, with the ability to trade on bourses including the Dubai Financial Market, Abu Dhabi Securities Exchange and Nasdaq Dubai, New York Stock Exchange, Nasdaq and London Stock Exchange.

The wealth platform is embedded in the ENBD X. Emirates NBD’s goal is straightforward here, to become a digital-first bank, which will pay attention to its customers’ financial needs and then draft the tailored solutions on a proactive basis. The revamped ENBD X perfectly sits on the blueprint, thereby confirming Van De Venn’s crucial success mantra, “By considering your organization’s business goals and objectives — and the technology necessary to support that endeavour — you can create a digital strategy that strikes the right balance between innovation, viability, and profitability.”

CRDB, a Tanzanian bank, has revolutionised the banking experience in the African country through its digital services. The revamped SimBanking app is now using Artificial Intelligence (AI), integrated with other advanced technologies that accumulate user memories and identify customers’ financial needs.

The app has bagged a number of awards in recent years, for the ability to predict and suggest in advance whether the customers want upfront to simply do transactions.

The app allows customers to choose service arrangements as per their financial needs. The in-built AI also helps the innovation to recognise services the customer prefers the most and direct the latter there, thereby increasing the range of digital services that can be provided at top speed and simplifying transactions. SimBanking app also offers various investment opportunities through its platform, including opening a fixed deposit account, apart from improving the transaction information pattern where customers can easily retrieve the receipt for all dealings at any given time.

The application has also been permitting payments through one-time passcodes. The users can also buy insurance coverage from the platform. As of October 2023, 96% of the lender’s transactions are carried through digital platforms, with the SimBanking app taking the flagbearer’s role.

CRDB is now eyeing to empower Tanzania’s 3.2 million small and medium-sized enterprises, businesses which contribute 27% to the nation’s GDP. Since 2020, CRDB has loaned Sh3.4 trillion to over 50,000 SMEs and raised Sh500 billion through international partnerships.

CRDB is also supporting youth and women entrepreneurs via its ‘IMBEJU’ programme, apart from financing green projects. The bank also launched the $200 million Tanzania Agriculture Climate Adaptation Technology Deployment Programme (TACATDP) at the Africa Food Systems Forum (AGRF) meeting.

United States-based ‘Private Wealth Systems’, a provider of advanced investment reporting and analytics for high-net-worth individuals and financial advisors, has been revamping its digital platform.

The existing user interface and experience reportedly fell short of delivering the sophistication and service quality that the venture’s HNWI customers demanded. Private Wealth Systems addressed the concern by revamping its investment reporting and analytics platform, thereby aiming to create a “more intuitive, visually appealing and functionally efficient system” that resonates well with the venture’s customers’ high expectations.

“Private Wealth Systems is a unique gem in the industry that smoothens friction and makes managing complex wealth delightful. This is a one-of-a-kind wealth management system that is a must-have for any ultra-high-net-worth individual. This transformation has redefined how affluent individuals and their financial advisors interact with investment data, elevating the platform to an essential tool for ultra-high-net-worth individuals seeking sophisticated wealth management solutions,” stated Finextra.

The digital platform is now offering services like account aggregating, portfolio accounting, performance reporting, portfolio management and investor portal, basically covering the A-Z of the financial needs of their core clientele (HNWI customers).

In February 2023, PWS was awarded with ‘Best Reporting Solution’ by Private Asset Management, where the venture was termed as a leader in solving the complexities of managing and reporting on public and private asset classes for family offices. PWS was also shortlisted for ‘Best Multi-Asset Class Portfolio Management System’ and ‘Best Technology Platform for Family Offices’.

During an interaction with the media, Private Wealth Systems CEO Craig Pearson said, “The platform’s capabilities are being recognised more and more as a disrupter in the market. What sets us apart from our peers around the world is our innovation where – in side-by-side comparisons to other platforms – we continue to prove materially greater data accuracy with better processing efficiency than even the largest tech providers.”

The post Banking innovations during inflation appeared first on International Finance.

To give Filipinos a cutting-edge, practical, and economical banking experience, Komo allows its customers to operate accounts in a completely online mode.

Customers get features including interest rates of up to 6%, connectivity with affordable transfers and a host of other new services promoting financial flexibility. Customers get full control over their account, apart from enjoying one of the highest interest rates from any Philippine bank today.

Be it fund transfers, free bill payments or getting a customised debit card, the Komo app is there to make its customers’ lives easier.

Promoting convenience and accessibility

“Komo’s drive for innovation grows day by day in today’s fast-paced world. Understanding how crucial convenience, accessibility and affordability are for users, Komo’s key features easily put them ahead of everyone else in digital banking,” the venture told International Finance.

Komo’s user-friendly mobile app lets the customer easily set up an account and access his/her finances anytime and anywhere. In addition, Komo will also provide credit options soon.

“Applying for loans is also more convenient with Komo as users can apply for loans using the app in less than 10 minutes. Traditional bankers that are making the switch to digital will find themselves transitioning easily with Komo offering free physical withdrawals using your Komo Visa Debit card at any EastWest Bank ATM and up to four times free withdrawals in any BancNet ATM,” the venture remarked further.

All the customer needs to do is to create his/her digital savings account on the Komo app, with just one valid ID, a smartphone, and a stable internet connection.

Talking about Komo’s key products, we have the venture’s savings account services, where the customer can grow his/her money faster with up to a yearly interest rate of 2.5%. Then there is insurance, where one can customise his/her protection plan through the venture’s partnership with Troo Flex Insurance. Apart from the fund transferring services, Komo also has its loan services which come with lucrative features like fast approval, flexible terms, and competitive interest rates coming very soon.

“Digital banking is more affordable with Komo with no minimum deposit and maintaining balance features, and offering one of the cheapest fund transfer fees at only Php 8 per transfer via InstaPay. Komo users can say goodbye to hidden sky-high fees and say hello to transparency and minimal fees that allow you to keep more of what you earn,” the venture remarked further.

Komo also empowers its customers to take control of their finances with features including financial calculators and educational resources to help people make informed financial decisions.

Komo has come up with a new product called ‘Analytics and Personal Finance’, which is the Philippines’ first-ever money management tool in a digital banking environment.

Through Komo’s Analytics, the customer can view his/her expenses and deposits to gain insights, track the funds, and manage their budget. The person can set his/her savings goals through the ‘Savings Calculator’ and learn to build better savings habits, apart from getting insights and controlling authority over his/her financial goals and budget.

Komo Finance has emerged as the ideal solution for Filipinos wanting a more convenient, economical, and secure method to manage their finances. As part of its continuous efforts to enhance the services, the venture has been engaged in a research study aimed at comprehending the experiences and requirements of the Komo platform users. The goal is to garner as much as valuable insights the venture can from its customers, to make the overall experience of banking with Komo a more refined one.

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By going digital, financial institutions are saving the money needed for building new branches, apart from automating a significant share of their daily mundane work.

For customers, they can perform basic banking activities like account balance checking from their homes, with just a few clicks on their smartphones. 21st century digital-only banks are giving their customers more attractive fee schedules and interest rates.

As per Bankrate’s 2023 emergency savings report, 57% of Americans were uncomfortable with their level of savings, something which online banking can address with their tailored solutions.

Today, we will explain in detail why going digital might be the best banking decision for you.

24×7 Banking Access

Physical branches of a bank don’t operate on a 24×7 basis, but mobile apps do. And this comes in handy during emergencies. What if you face a medical emergency or need to transfer funds to your friend urgently? Internet banking will help you to sail through these emergencies.

You will be able to transfer money anytime and from anywhere with just a few clicks on your smartphone.

By using mobile check deposit, you can deposit a check from your house even during the night. While the legacy banks were known for their rigid duty times, digitization has broken them down completely.

No Need For Branch Visits

Checking savings bank account balance, transferring funds to another user, requesting a new chequebook, setting up standard instructions, initiating money transfers, opening a Fixed Deposit account, and paying utility bills, all these functions were used to perform through branch visits a few years back. However, the arrival of mobile banking has changed the scenario.

You can pull off the above functions from your couch through a single interface of your bank’s app, while saving the transportation cost.

Makes Saving Money An Easy Affair

United States-based Ally Bank app offers features like automatic transfers to savings accounts, along with round-ups that move rounded-up change into the customers’ savings.

The US Bank app is known for alerting customers when its algorithms spot money-saving opportunities. California-based all-digital Varo Bank is offering a ‘Save Your Pay’ feature that automatically stashes away a pre-set percentage of the customer’s paycheck each time it deposits.

Having banking apps with spending alerts has emerged as the perfect money optimization solution for 21st century customers, something which all-digital neo/challenger banks are making full use of. This helps the customers to keep track of the latters’ account expenses, apart from organizing them into spending categories like utilities, dining and transportation.

Some apps are even offering built-in budget creation solutions. Then there are digital banking interfaces, where you can set your financial goals and save money as per that. Your banking app will even allow you to download account statements to your smartphone.

Giving Tailored Financial Products

Neobanks and challenger banks are known for offering their customers tailored products through digital routes.

You can digitally draw up your financial goals and start categorizing your money-saving activity as per your needs. Ten years back, the same process would have involved immense paperwork.

The 21st century banking apps make your life easier by deploying AI and Machine Learning, which, through the analysis of large volumes of data in a quick span, predict your banking behaviour, and decode the latest market trends and sentiments, before suggesting your investment options.

AI solutions are also suggesting 21st century customers the best time to invest in stocks, apart from warning them about market risks.

In short, digital banking solutions are also helping customers to make informed decisions on financial instruments like mutual funds, stocks and bonds.

A Strong Data Security

Compared to the physical branches, digital banking apps invest heavily in guarding their customers’ crucial data.

Yes, you may run the risk of losing access to your banking app, if you don’t remember your username and password, but these are the safety features, along with multi-factor authentication, which keep your data safe.

Some bank apps have taken the game to the next level by asking its customers to log through face/fingerprint scanning, before they access their accounts.

Apps of Wells Fargo, Ally Bank, Chase and Bank of America let their users access their digital solutions to turn their debit/credit card off if it gets misplaced. Earlier, this function required the customers to call a toll-free helpline number, or in the worst case, to make a panic visit to the branches.

The post Five reasons why your banking should take a digital route appeared first on International Finance.

COVID caused a digitalization boom in the United Kingdom’s banking sector, with mobile apps seeing the biggest gains, according to research from UK Finance.org. The 81% of respondents polled by the study also pitched a bank’s online experience as a deciding element in their financial behaviour.

Challenger banks have also arisen as fierce competitors by putting a premium on providing an amazing digital-first service. Traditional banks must pay attention to this trend to stay competitive.

Banks have realized that achieving digital transformation requires more than technological breakthroughs. The industry must continually invest in its infrastructure to secure reliability and trust from its customers. A smooth user experience is essential to standing out in a booming market as more customers rely on online banking services. Effective storage solutions are the foundation of the digital banking ecosystem, supporting and maintaining efficient consumer access. The financial services industry can effectively meet the rising demand for digital banking services and provide a superior user experience for all consumers, regardless of age or demographic, by prioritizing customer experience and data security.

Age of storage: The big short

With the transition from paper-based records to storing consumer information online and in the cloud, customers’ interactions with their banks and financial institutions have changed significantly. In 2023, there will be about 5,000 banks on UK high streets, down 75% from the number of branches in the late 1980s, according to a recent Parliamentary discussion.

The conversion of traditional banks to digital platforms and the emergence of neo banks, banks that only conduct business online and have no physical locations, have greatly increased the amount of data and metadata produced. Consequently, these growing data volumes necessitate ongoing, scalable, and more creative storage solutions. The acquired data and storage requirements will vary depending on each bank’s digital operations. However, because of their increased online presence, all banks, whether neo banks or hybrids of brick-and-mortar and online, now need more reliable storage solutions to help them conduct their operations.

Before the development of modern banking, banks only kept basic records of their clients’ identities, including names, dates of birth, addresses, and bank account numbers. However, financial institutions have begun to gather more meaningful data about customer transactions due to the growth of digitalized banking. This involves using client spending data to identify potential credit concerns, putting risk management procedures in place, and using data gathered from customer surveys. Banks gather insights due to the rising use of artificial intelligence (AI), which must be efficiently managed, stored, and secured for the protection and security of personal data. Financial institutions must assess their storage needs and develop more scalable, efficient solutions to address their expanding data needs.

Since the late 1980s, corporations and financial institutions have relied heavily on flash storage, including solid-state drives (SSDs), for quick speed and short retrieval times. In comparison to conventional hard disk drives (HDDs), which are known in the industry to store and handle “cold” or “warm” data, SSDs can provide faster access to data (so-called “hot storage”).

Flash storage helps speed up data-intensive processes like processing customer transactions and real-time data analysis for UK banks. However, “cold” storage (HDDs) and “hot” storage (SSDs) both have significant roles to play in data management. For information banks that need instant access to, such as transactional data, “hot” storage is essential. On the other hand, “cold” storage is utilized to retain historical and inactive data. However, HDDs offer bigger capacity and are more cost-effective due to a cheaper price per terabyte and other total cost of ownership (TCO) factors.

HDDs give a different access speed for data retrieval. The amount of accessibility necessary is the main factor to take into account while dealing with archive data. Although it is possible to retrieve data from both data backups and archives, doing so via archives can take a few minutes to many hours. Depending on the data’s nature and volume, this may need manual searches.

Institutions are integrating data analytics and AI capabilities into their storage systems. In fact, according to one estimate, the market for AI-powered storage will be worth about $25 billion by the 2025 end. AI may be used to determine and optimize a bank’s data storage needs, separate the data into live and archival copies, and even automate the procedures and schedules for managing storage.

Major applications

Digitalized banking generates a significant volume of data encompassing customer information, transaction records, financial statements, and market data. Robust storage systems, such as cloud-based platforms or data centres, are crucial in efficiently managing and storing this data.

These centralized storage solutions provide secure data storage, backup, and disaster recovery capabilities. Moreover, they enable easy and fast accessibility to data. This seamless access facilitates smooth operations and enhances customer service by allowing quick retrieval of relevant information.

Personalized customer experiences are at the core of digital banking. Banks can gain valuable insights into customer behaviour, preferences, and financial needs by leveraging stored data. This data is a foundation for creating tailored products and services, personalized marketing campaigns, and targeted recommendations. For instance, customer relationship management (CRM) systems store customer data, allowing bankers to offer customized solutions and deliver exceptional user experiences. These personalized interactions foster stronger customer relationships and satisfaction.

Efficient data storage is fundamental for advanced analytics and business intelligence in digitalized banking. Banks can leverage big platforms to store and analyze vast volumes of data. Banks derive valuable insights, identify patterns, detect fraud, and make data-driven decisions by applying analytics techniques. These analytics capabilities enable banks to understand market trends, manage risks, optimize operations, and improve profitability. Access to comprehensive and well-organized data fuels the success of these analytics initiatives.

The storage of sensitive financial data necessitates stringent regulatory compliance and robust security measures. Banks must comply with data protection regulations, ensuring data privacy, confidentiality, and integrity. Storage solutions with strong encryption, access controls, and audit trails safeguard customer data from unauthorized access or breaches. Implementing proper data storage practices allows banks to meet compliance requirements by securely storing transaction records, regulatory reports, and customer consent data. This focus on regulatory compliance and security instils trust and confidence among customers.

Digitalized banking demands storage solutions that can scale and adapt to accommodate the growing volume of data. Cloud-based storage solutions offer scalability, enabling banks to expand storage capacity as needed without investing heavily in physical infrastructure. The flexibility of cloud storage also facilitates seamless integration with other banking systems and applications, promoting efficient data sharing, collaboration, and innovation. This agility in storage solutions supports the dynamic nature of digital banking operations and ensures scalability as the business evolves.

In summary, efficient data storage empowers banks to manage vast amounts of data, ensures accessibility, enhances customer experiences, supports advanced analytics and business intelligence, facilitates regulatory compliance and security, and provides scalability and flexibility. Banks can optimize operations, deliver personalized services, and make data-driven decisions by effectively leveraging stored data, enabling them to thrive in the digital banking landscape.

Following the challenger banks

Online and offline banks are pressured to meet shifting standards for the best client experience. This calls for high-performing storage solutions to ensure a seamless experience and consumers’ quick access to their data and services.

Customers will benefit from the improved convenience of Internet banking in the future, but banks must ensure that the necessary infrastructure is in place. Banks must improve their storage options to stay competitive in a crowded industry. Massive volumes of live and archived data have resulted from the quick development of digital banking.

Banks may offer tailored consumer experiences by investing in scalable, secure storage solutions. Consumers will have faith in real-time transactions and data-driven insights, building strong trust with prospective and current clients. The foundation for advancing the industry will be effective storage solutions.

Digital transformation has significantly impacted the banking industry, and traditional banks must adapt to stay competitive in a market that values digital-first service. With the pandemic accelerating the shift to online banking, customers expect a seamless user experience and prioritize a bank’s online capabilities when making decisions.

Effective storage solutions are essential for maintaining efficient consumer access, customer trust, and reliability. With the emergence of neo-banks and the growing volume of data produced, financial institutions must prioritize storage solutions to maintain a competitive edge in the industry. Banks can provide tailored consumer experiences, build client trust, and advance the industry by investing in scalable, secure storage solutions.

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One of the most crucial institutes of human civilization found itself in troubled waters as it got hit from multiple angles. Both personal and institutional banking activities came to a near standstill as everyone experienced a financial crunch. The term used by S&P to describe the effect was ‘Screeching Halt’, which spoke volumes for the state of things. However, it was not the pandemic alone that affected banks. The pre-COVID banking sector was already under pressure in two main areas: competition from large and small fintech and tech fin firms, and low-interest rates.

The situation was only exasperated by the crisis, providing a stark reminder that it was time for banks to up their game.

Issues that plagued the banking sector due to COVID-19 pandemic

Banks saw a drastic reduction in investment levels while also experiencing market volatility. Activities like M&A/SPAC also saw a drop, further affecting income streams. And finally, the underutilization of brick-and-mortar bank facilities added to costs without substantial revenue to justify the spending. The aim of the banking sector in the post-COVID world was not so much about surviving – that was well within its capability, but more about how quickly it would get back on its feet.

Fortifying for the post-COVID era

There are a few areas that the sector can focus on to be better equipped for the post-COVID era. The first is digitalization. This is where fintech got it right, right from the start. If banks can digitalize and automate as many processes as possible, it could be a leap forward in getting back on track. Digitalization does not only streamline operations and makes them faster, but it also helps to lower the error rate to even zero. Automating processes helps free up resources that would otherwise be tied up doing mundane tasks. Reallocating these resources can have a considerable positive impact on the everyday running of the banking sector.

Personalized experience for customers

While going digital and moving processes online, it is also important to maintain a personalized experience for customers. Improved telephonic and video communications for customer interactions could be exactly what both banks and customers need to retain good relationships and provide reassurances in the sector’s ability to build momentum in the ‘new normal’.

In a world where many non-banking financial companies (NBFCs) already have a head start in online payments and processing of financial transactions, banks do not have to start from scratch. Collaborative ventures or even mergers and acquisitions of small yet well-equipped NBFCs could speed the process along.

Interests on loans have been the major source of revenue for banks over the decades. However, the COVID-19 crisis rocked this model to the core. Loss of jobs, and businesses collapsing made it impossible for a vast number of borrowers to pay back their loan amounts. As the number of non-performing loans (NPLs) increased, banks found themselves incurring greater losses with a diminishing capacity to absorb these losses over time. This situation is unlikely to change at a rate that would help banks recover quickly.

Focusing on alternate sources of income

One way that the banking sector could start recovering from this outcome is to focus on other sources of income. A fee-based model for revenues should be the next step to protect and stabilize the business. Developing new products and improving existing products would help to enhance fee-based revenue-generating streams. Whether we are looking at digital products like e-wallets and e-credit cards or more traditional products like lockers, Guarantees, and pay orders, increasing their attractiveness and accessibility for the customers is a move in the right direction.

COVID-19 was a shock to the system of transactional banking, which has led to a change in the business model. This new model combines and integrates technology into the survival strategy. There has no doubt been progress, and things have been looking up to an extent. However, while it is now behind us, COVID has left us with a rocky road ahead, fraught with significant recessionary and geopolitical factors that continue to influence the banking industry.

In this light, the future needs to be navigated with caution, but also with imagination and innovation playing a significant role. An attitude of openness to collaboration with various players is necessary in order to thrive and should be looked at with a fresh perspective. Typical low activities like consolidation and joint ventures are essential if banks are to emerge stronger in a post-COVID world.

The post Revival of banking sector after COVID era appeared first on International Finance.

These new expectations have forced companies of all sizes to adopt emerging technologies and modernize their businesses to remain relevant. Banking is one of the industries that has experienced these changes the most and has witnessed the whirlwind of digital initiatives that have completely disrupted the industry, especially since the COVID pandemic.

World Bank Group President David Malpass said, “The digital revolution has catalyzed increases in the access and use of financial services across the world, transforming ways in which people make and receive payments, borrow, and save.”

Banking users are now demanding digital solutions and are more aware of all they can now do using their computers and smartphones. Henceforth, it’s no surprise that traditional banks keep losing their appeal, and online banks have become the new belle of the ball.

The pandemic may have accelerated the adoption of digital banking solutions, but mobile banking platforms and Fin-techs have been around for a while. What COVID did was bring mobile banking’s benefits to the surface and drive its accelerated adoption. As a result, traditional banking methods are slowly but surely getting outgunned, and digital banking – especially mobile-only banks – is becoming the norm. This way, online banking is reshaping the landscape of the world’s financial services industry, a future where in-person interactions are no longer the status quo.

As many experts think that online banking is the future and has the potential to take over traditional banking, Professor Vincenzo Capizzi, SDA Professor of Banking and Insurance told International Finance that mobile banking cannot take over traditional banking as it fails to build customer relationships.

Professor Vincenzo Capizzi said, “Mobile banking is certainly an important value driver in terms of competitive strategy, particularly in demand by the younger generations. But worldwide evidence indicates that the physical banker-customer relationship is essential. On the contrary, mobile banking helps to give added value to the physical relationship, which can thus be focused on a greater advisory content.”

However, vital questions remain: How are mobile banks impacting traditional physical banks? Will users drop their existing traditional banks altogether and switch to all-digital banking services? What are the benefits of mobile banks? What makes them superior to conventional banking solutions?

What is mobile banking?

The banks that don’t have a physical branch are referred to as mobile or online banks. These are full-fledged financial institutions without a physical branch, meaning they operate exclusively online. To access their services, one needs an internet connection and a smartphone, tablet, or computer.

Mobile banks typically offer the same services you would find at a traditional bank without having to physically go to a branch, stand in line, and deal with tellers, other clients, parking, traffic, etc. With mobile banks, an individual can easily open an account, make payments, transfer funds, and withdraw cash, all of these by using an app or website on the device.

Additionally, most online banks offer debit and credit cards with no monthly fees, easy cash withdrawals from various ATMs worldwide, and simple currency conversions. These features, and many more, are the reasons why mobile banking keeps gaining traction and surpassing traditional banks, which are struggling to keep up with the new normal.

Technology helping banks go digital

Thanks to technologies such as mobile internet networks, cloud computing, artificial intelligence, Big Data, and blockchain, the banking industry has taken the plunge into becoming a predominantly digital industry. This has forced traditional banks to transform and upgrade or perish. Also, due to these technologies evolving at unbelievable speeds, mobile-only banks are popping up left and right with new features and more services added continuously, broadening the scope of what we can accomplish through digital banking. This phenomenon has skyrocketed the popularity of digital banks, and their usage has increased significantly in the past decade.

In the UK alone, the number of mobile banking users rose from 30% in 2007 to 76% in 2020. This rise in the adoption of digital banking means that most customers are either no longer visiting physical branch locations or have dropped their traditional banks altogether to switch to a mobile-only bank. Consequently, traditional banks are starting to see digital banks as a genuine threat.

Aside from the evident benefits of digital banks, one of the root causes for online banking becoming a disruptive force and changing the face of modern banking is the millennial population. Millennials are very tech-savvy and grew up during the boom of the digital world, so they are more demanding, less loyal, and usually expect their products and services to be digitized, accessible, personalized, and efficient. Henceforth, for millennials, traditional banking is useless and obsolete. Actually, a survey from The Millennial Disruption Index found that 71% of millennials would prefer to go to the dentist than physically talk to their traditional banks.

Furthermore, 73% would be more excited about online financial offerings from Google, Amazon, Apple, PayPal, or Square than from their traditional bank. And, if we consider that millennials are the largest generation group on the planet, we can easily conclude that adoption rates for mobile banking are only going to keep climbing. For traditional banks, this means updating their archaic banking models or being doomed to slowly but surely disappear.

Are traditional banks going to disappear?

A recent study conducted by N26, a German online bank, shows a steady decline in the number of open bank branches in the US of 7% since 2012. This figure is expected to fall to 16,000 by 2030, and the decreasing trend suggests that all branches will close by 2034. Furthermore, the study also shows that 46% of Americans believe that the current banking system needs to change, and 16% say they don’t trust banks.

From these figures, we can easily conclude that traditional banking is on its way to oblivion. The current banking system is flawed, and most conventional financial institutions aren’t keeping up with shifting consumer habits. In addition to the pandemic, which was a fantastic driver of this shift in habits, younger generations aren’t exactly branch-friendly. They are digital natives, which mean that mobile banking wasn’t a pandemic-driven transition for them; it was the norm. These larger generational groups drive online bank adoption through the roof and bring to the surface evident flaws in the current banking system.

Added to this is that many traditional banks are taking too long to abandon their obsolete legacy systems and aren’t leveraging new emerging technologies to effectively challenge their digital counterparts and meet the needs of younger customers. FinTechs and online banks have taken advantage of these unmet needs. They have created a mobile ecosystem with a broader scope of features that gives their users power over their financial lives and redefines what they can do with just a swipe of their finger.

Nonetheless, however pervasive mobile technologies have become in our lives, the truth is the basic need for banking services remains unchanged. People will always need to make deposits, open new accounts, get new debit and credit cards, apply for loans, and purchase goods. And even though you can perform all of these tasks using online banks, there will always be customers who value human-to-human connections when it comes to something as personal as money.

In fact, according to a recent study, 73% of surveyed customers still prefer in-person interactions when dealing with the financial aspects of their lives. The N26 research we touched on earlier also shows that 89.2% of Americans prefer to stick to a bank with physical branches. They rank access to cash (53.7%) and in-person advice (50.4%) as two of the top benefits of physical branches over online banks. Furthermore, they found that security was a considerable concern when switching to online-only banks, followed by the lack of human interaction.

While witnessed a considerable rise in the adoption of online banking, we can’t confidently conclude that physical branches will disappear at any point soon. There might be less dependence on physical branches moving forward, but in-person banking will likely remain an integral part of the modern financial industry. People will probably see physical branch locations embracing hybrid strategies that marry the benefits of the online universe with the in-person needs of their customers. This way, traditional banks will supplement their branches with digital tellers, chatbots, virtual assistants, and remote appointments, among others.

On that same token, having the best of both worlds is exceptionally beneficial for the industry, especially when considering that digital-only solutions aren’t the answer for every customer. Some people don’t have constant access to a smartphone, Wi-Fi, or mobile internet. And even if they do have access to said elements, some customers aren’t capable or savvy enough to conduct their banking digitally, some distrust the online system, and some simply don’t want to. For this reason, it’s essential to keep the physical, in-person solutions while implementing and improving access to online services.

According to Marie Kemplay, head of Americans Credit, a financial institution, said, “There might be less dependence on physical branches moving forward, but in-person banking will likely remain an integral part of the modern financial industry. We will probably see physical branch locations embracing hybrid strategies that marry the benefits of the online universe with the in-person needs of their customers.”

The post Is mobile banking taking over traditional banks? appeared first on International Finance.

The 5-year transformation strategy of Commercial Bank is being put into action, and important components include changing the revenue and cost bases, improving the customer experience, and using digital innovation in both client and operational operations.

Thanks to the Commercial Bank’s Board of Directors and the Executive Management’s vision, strong results were obtained with execution tracking ahead of schedule, as evidenced by a 2% rising share price during the last 12 months.

International Finance caught up with the COO of Commercial Bank of Qatar, Dr. Leonie Lethbridge, who shared her insights about the innovative services of Commercial Bank, business strategies, digital transformation, and much more.

IF: What are the standout features of Commercial Bank? What kind of innovative services does Commercial Bank provide?
Dr. Leonie Lethbridge: Commercial Bank of Qatar has strategically driven the market for highly convenient, customer-friendly, secure banking solutions. This approach has harnessed innovation to deliver truly client centric approaches: increasing engagement through mobile devices and technologies such as biometric authentication; proactively creating a wide array of digital products and services; and enabling self-service and service on demand distribution channels.

The payments ecosystem has been one area of focus, and in the lead up to the FIFA World Cup, this will become almost cashless. CB Pay is an early Commercial Bank innovation which provides a convenient mechanism for merchants to receive payments through QR codes without the need for POS machines. Commercial Bank also provides Virtual POS solutions that require a smart phone only, for merchants to be able to conduct POS transactions.

For Premium and Wealth Management clients, our digital relationship management service showcases our approach to customer convenience. Completely at clients’ discretion and convenience, the solution is not merely video conferencing, but rather enables fully remote face-to-face banking, where advice can be provided, documents can be exchanged and signed, and transactions facilitated. The security of the service is, of course, fully assured.

What does Commercial Bank provide to its customers that distinguishes it from other banks?
The main factor that distinguishes Commercial Bank from others is the ease of use, and breadth of solutions we’ve created to meet our customers’ needs. Solutions combine cutting-edge technology with a strong focus on understanding actual client needs, to deliver a superior customer experience for each banking service.

Our online and mobile banking services are distinctively comprehensive, fully meeting day-to-day banking needs. We provide our customers with the capabilities to conduct their banking activities entirely at their own convenience without the need to engage service staff, or visit a branch. We measure success by the actual adoption of specific services and the satisfaction of customers towards those services.

Among individual customers during 2021, active digital users increased by 15%. Of these, mobile usage represented 94% of all digital transactions. Adoption of mobile-friendly technologies, such as biometric registrations, continue to increase at approximately 25% per annum. For transaction banking, Apple Pay, Google Pay and other mobile payment solutions are well appreciated by our clients.

Online and mobile banking solutions also play an increasingly important role for corporate clients. In 2021, clients accessing banking services via mobile devices increased by 20% and, importantly, there was 30% growth in business owners and decision makers using CB’s mobile solutions to approve transactions.

Bespoke solutions were created for our corporate clients who are also seeking to extend their digital reach and service proposition.

Other solutions which heighten the convenience and level of service offered by the Bank, include:
CB Instant Account: Customers apply on their mobile device and after uploading KYC documentation, receive their bank account number in less than five minutes.
CB Arriving Expat Accounts: An exclusive partnership with Qatar’s offshore visa issuing centres enabled support of expat customers by opening a CB account for them whilst they completed immigration formalities, and before arrival in Qatar.
Sadara Youth: CB’s exclusive program dedicated to Qatari customers aged between 18 and 25 years includes the first mobile banking application in Qatar to reward young customers.
Small and Medium Enterprise banking: New, digital channels have given SMEs better control over cash flows, and flexibility to securely transact from the comfort of their offices.

CB continues to score highly on customer satisfaction through surveys and ratings, with its digitization efforts particularly recognized both by independent agencies and customers. Customer satisfaction remains very high with net promoter score ratings above 74.

Can you tell us about Commercial Bank’s business strategy?
During the past year, Commercial Bank was able to demonstrate strong execution of the Bank’s strategic plan to support customers, and to deliver sustainable earnings through its five Cs: Corporate Earnings Quality, Client Experience, Creativity and Innovation, Culture, and Compliance. The Bank’s achievements were recognized with a slew of awards during 2022 including “Best Serving Business Owners” in Private Banking and Wealth Management in Qatar for the second consecutive year from Euromoney, and “Best Bank in Qatar” for the third year from Global Finance. The Bank has also been awarded 9 prestigious awards from Global Finance on both the consumer and corporate levels, in Qatar, regionally and globally. Also, the Bank won “Best Trade Finance Provider in Qatar” and “The Most Outstanding Innovation in Fraud Detection award in the world” from Global Finance, as well as the Best Bank for Corporate Banking in Qatar from Euromoney. Commercial Bank has been recognised as the Most Innovative Customer Service Bank in Qatar, for the second consecutive year, and the Most Innovative Mobile Trading App in Qatar from International Finance Magazine.

In addition to investments in digital technologies, excellence in communication to support clear, simple banking is a focus. Commercial Bank’s social media approach encouraged customers to #GoDigital in six languages across all available channels, using friendly, understandable language.

Commercial Bank extends innovation to our communication approaches, and this is clearly reflected in Commercial Bank’s continuing commitment to its audience to include:
CB TikTok – Rashed’s Financial Tips: responding to a study indicating that millennials in the region prefer to manage finances on their own rather than seek help directly, Commercial Bank offered tailored financial guidance on TikTok. One of the Bank’s most popular series is ‘Rashed’s Financial Tips’, presented weekly by a senior branch banker, Rashed Al Boainain.
Qatar University Innovation Contest: CB collaborated with Qatar University to launch a first-ever competition for Qatar University students to design their own space at Qatar University Metro Station. From 29 original entries, six groups of finalists were shortlisted and four granted prizes from QR 1,000 to 5,000, with the winning idea implemented on the ground.
#CBsafe: A public awareness anti-fraud campaign revolving around the slogan ‘Check. Stop. Report’, with tips on how to identify scam attempts and how to respond. Campaign publicity included collaboration with ‘I Love Qatar’, the biggest online platform for expats in Qatar. It involved usage of cartoon figures to communicate in a simple easy way with customers.

We can say this approach has earned Commercial Bank a leading position amongst the financial institutions in Qatar, and the trust of our global financial partners.

Commercial Bank has made excellent, targeted use of technology. What do you want to say about the digital transformation of Commercial Bank?
Commercial Bank embarked on a digitization journey five years ago and has subsequently adopted a highly creative approach to it. The future of banking lies at the intersection of clients, their information, and technology. The ability to respond quickly, and innovatively in delivering client-centric offerings will be important, particularly as banking and financial solutions will continue to be absorbed into sectors beyond banking, such as telecommunications, and by Big Technology. Commercial Bank has a unique approach to digital transformation, including harnessing modern-day technologies such as AI and machine learning to better understand our customers’ behaviour and requirements, and to offer a one-of-a-kind banking experience.

Also, given the fact that security goes hand in hand with digitization, Commercial Bank has put cyber security at the forefront of its strategy. Our continuous efforts at innovation aim to earn the trust of our customers and partners to bank with us, while maintaining a secure environment.

Commercial Bank has well embraced digital transformation, setting an example of successful strategy, proper execution, and commitment to excellence. We have created a world-class, agile technology capability with the ability to deliver digital scalable, automated innovations at speed.

Commercial Bank has the vision that 100% of your customers can do banking anywhere, anytime. Tell us about it?
As clients increasingly want to do everything seamlessly and easily without visiting a branch, we took charge of empowering customers to choose the time, place, and manner in which they engage with the services provided by the Bank.

Commercial Bank has raised the level of expectation for its customers. We have been able to digitally process 99% of our retail customer transactions and 95% of our trade and funds transfer transactions throughout the day by successfully applying the methods of adoption and utilization of technology.

These levels of digitization and customer adoption point to a future in which our customers will be able to perform all their banking services from the palm of their hands, at any time of day.

The post Commercial Bank’s Unique Approach to Digital Transformation appeared first on International Finance.