The top technology trends transforming digital banking

Great apps, banking as a service, behavioral banking, and cybersecurity. These are just a few of the trends that promise to make the future of banking fast, smooth and personalized.

Origin: Supplied. Wim De Bruyn, IT Director of Capitec.

The growing prevalence of smartphones means that billions of people now have an entire banking system in their pockets. For the more than 10.1 million people who use Capitec’s digital channels, a host of new innovations in the financial services industry means their banking experience is about to get a whole lot smoother.

Wim De Bruyn, Chief Information Officer of Capitec, says: “The world of financial services is moving towards the digitalization of customers’ banking activities and relationships. In China, great apps like WeChat allow you to bank, shop, and entertain yourself from a single app. Banks around the world are starting to explore similar features that will help customers live better lives.

“We want to continue to be at the forefront of this – enabling digital by putting data to work helps our customers live better lives as it makes banking even more simplified and personalized.”

As someone actively involved in ensuring that fintech brings practical benefits to customers, De Bruyn has identified some tech megatrends for 2022/23:

Hyper-personalized bank

It is estimated that the amount of data created in the next three years will be greater than the amount of data created in the last 30 years. This information enables organizations to analyze customer behavior and create more personalized product and service suites using machine learning. This means the end of unnecessary notifications about loans you may not want or need. Banks will use your data to create personalized prompts that serve you something that adds real value.

De Bruyn explains: “With over 10.1 million digital customers, we can gather immense amounts of data, which we then use to deliver hyper-personalized prompts to help our customers improve their banking behaviors – and, in ultimately their life.

Create trust

In May, the Banking Ombudsman reported a 7% increase in complaints, most of which were related to fraud. Trust and security are always a top priority in banking and are now more important than ever. With this in mind, Capitec has partnered with Sky QR, a digital security company that allows users to securely verify documents and information via a QR code.

De Bruyn says: “Document fraud is a major problem in South Africa. Scammers often intercept bills and then change bank details to reflect their own. Others use fake payslips to secure loans they may not be able to afford. By using Sky QR, Capitec has seen a reduction in the number of fraudulent documents in circulation, with over 85 million QR codes generated and scanned since the start of the partnership over a year ago. Capitec customers know that their bank statements and payment confirmations are reliable.

Heavy on function, light on friction

Convenience is everything and frictionless functionality is what happens when you elevate simplicity to science. With simple mobile transactions like contactless card payments, digital wallets and one-click payments, banks ensure customers always have simple and efficient access to their money.

Thanks to the idea of ​​banking as a service, a concept that allows banks and non-banks to offer customers a more homogeneous offer, many companies will soon be able to offer a wide range of banking services. Retail. A good example of this is being able to take out a loan or payment services without having to engage your bank directly. With the widespread use of smartphones, these types of transactions have become a cheaper, more convenient and safer alternative to cash.

De Bruyn says: “Covid-19 has helped accelerate the adoption of these trends. We are constantly innovating to make payments smoother. Our Scan to Pay and Pay Me features, for example, allow customers to make or receive secure cashless payments without their cards leaving their wallet. And best of all, all of these features are completely free.

Capitec’s Live Better is another example of how frictionless functionality can help bring real value to people’s lives. De Bruyn adds, “Customers earn cashback on their debit and credit card transactions, which is paid into their Live Better savings account on the app on the 10th of every month. It is not cash back in the form of coupons or exchanges. It’s real money in our customers’ accounts to spend on what they want. It’s a way to improve people’s lives, while encouraging greater digital adoption. »

De Bruyn says he expects an explosion of innovation in the frictionless space this year. “A lot of attention will be given to ‘small’ innovations that create positive changes in the lives of our customers. For example, Round Up allows customers to save without having to think about it. When combined with our interest sweep feature, users can effortlessly transfer all interest earned on their primary transactional savings account to their Live Better savings account to earn even more interest.

He concludes: “As the strongest brand in South Africa and the best digital bank, Capitec has always stood for simplicity, affordability, accessibility and personalized service. Innovation has always been one of the best ways to achieve these goals. This is how we managed to increase our clientele from 25,000 to more than 18 million in 20 years. We strive to make banking as easy as possible for every South African and, most importantly, to be worthy of the trust millions have placed in us.

Jack L. Goldstein