24th africa regional group - wsbi-esbg · fintech providers are attracting your clients with more...
TRANSCRIPT
© Strands Inc. 2018
Innovation, strategies to optimize creation and
deployment: Advances: which technologies, for
whom? Why? And how?
24TH AFRICA REGIONAL GROUP
© Strands Inc. 2015
Africa – 2nd Fastest Growing Banking Market Wordwide
BANCARIZADOS
SUB-BANCA-
RIZADOS
Retail-banking
penetration
stands at just
38% of GDP =
Half the Global
Average
© Strands Inc. 2015
NEW OPPORTUNITIES AND CHALLENGES
FintechMarket
Evolution
OPEN API´S
MACHINE LEARNING
PREDICTIVE ANALYTICS
DISINTERMEDIATION
INTERNET GIANTS THREAT
NewConsumer Habits
MOBILE
REAL-TIME
UBER/FB/AMAZON EXPERIENCE
LESS LOYALTY
Other banking
Challenges
LARGE LOW
INCOME
POPULATION
WIDESPREAD USE
OF CASH
POOR COVERAGE
OF CREDIT
BUREAUS
NEW LANDSCAPE => NEW MARKET DEMANDS
BEHAVIOR CHANGE:
SHIFT TO DIGITAL
Mobile mind shift. Customers expect convenient, real-time, frictionless experience.
MORE COMPETITORS -
INDUSTRY DISRUPTORS
New digital banks and B2C FinTech providers are attracting your clients with more lucrative offers
NEW AVAILABLE
TECHNOLOGY
More advanced application of artificial intelligence e.g. Machine Learning. Better integration capabilities of software
Efficiency Agility Personalization
Trends that will have the biggest impact on retail banks by 2020
© Strands Inc. 2015
"One-quarter of urban Africans are online at
least 10 hours a week. The large
majority of African Internet users access the
web via mobile devices—and most of them are
young.”
Source: McKinsey Report 2018 – Retail Bankingi
© Strands Inc. 2015
Innovation and Digital Disruption
“total digitalisation, machine learning, analytics and Open API are delivering previously
unimaginable opportunities to get closer to customers and re-invent what it means to be a bank
© Strands Inc. 2015
DIGITAL TRANSFORMATION
End-to-end digital
transformation
Building a new digital
bank
Partner with one or more
FinTechs
Partnering for digital reach
TYME BANK SOUTH AFRICA
ALAT BY WEMA BANK NIGERIA
YUP BY SOCIETE GENERALE
TELCOS
- Clear Digital Transformation strategy coming
from the Top Management
- Digitize the customer experience
- Change the mindset of the Organization:
- Reduce costs
- Agile Methodology
• Digital Banking Platforms
• Digital Money Management
• Chat bots
• Block chain
• Facial Recognition
© Strands Inc. 2015
Personalization is the key
By using analytics banks need to differentiate themselves
create services and tailored products that add meaningful
value to each one of their customers
© Strands Inc. 2015
HOW TO REACH PERFORMANCE
It’s not about increasing time spent in the Banking app,
it’s about gaining Quality of Interaction and increasing Frequency of Interaction
An average online banking session last approximately 600 seconds
Source: Unicredit study
HOW TO REACH PERFORMANCE ?
KYC: MEANINGFUL INTERACTIONSMoving from something that happens on a weekly basis to several interactions a day
?!
DIGITAL MONEY MANAGEMENT IS KEY FOR LONG-TERM SUCCESS
DEMONSTRATE CUSTOMER ADVOCACY
If customers feel a bank
acts in their best interest,
they will borrow, invest and
buy more
DIFFERENTIATE FROM COMPETITORS
DMM will become your
differentiator that
competitors cannot quickly
replicate
ATTRACT YOUNGER CUSTOMERS
They’re comfortable with
digital touchpoints.
Building a relationship will
pay off later.
*Source: Forrester Research
BUILD RELATIONSHIP BANKINGLeverage customer data to provide useful insights and personalized recommendations for the next best action
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EDUCATE AND FACILITATE SAVINGS
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PREVENT FUTURE EXPENSES
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MONETIZE AN ATM EXTRACTION
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MONETIZE PERSONALIZED CAMPAIGNS
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ALERT ON FUTURE PAYMENTS
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SAVE BY COMPARISON WITH YOUR PEERS
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THE WAY TO GENERATE NEW REVENUE FOR BANKSOffer SMEs value-added services
Did you know?
More than half of SMEs are willing to pay an additional $10 every month for personalized business financial management services
Banks (in the UK) could open up to £8.5 billion in new revenue streams by 2020 by delivering value-add products and services to SMEs
If banks are unable to address SME pain points, 1/3 will turn to non-banks to make payments, access loans, and manage transactions.
£8.5 BILLION
+10$
1/3
Source: Accenture “SME Banking 2020”, Aite Group
© Strands Inc. 2015
1 2 3
5
4
6 7 8
No way to track or forecast
cash flow, AR/AP
Too many different tools to
manage day-to-day tasks
Dispersed, unintelligible
financial data
Prohibitive costs to
professional financial
management services
42% WOULD SWITCH TO A
BANK OR FINTECH THAT
SHOWS AN UNDERSTANDING
OF THEIR BUSINESS
40% need advice to run
business more effectively
and plan growth
70% have no relationship
with a bank managerManual invoicing
2 3
5
4
6 7 8
Source: IFC, World Bank
PAIN POINTS OF THE “MISSING MIDDLE”
Corporate Banking Retail BankingSMEs
“There is an alarming disconnect between what small businesses want and what banks deliver.”
© Strands Inc. 2015
Customers use a PFM & BFM app in everyday life to help them take better decisions. They expect to be understood, advised, alerted, excited
Banks leverage customer data to:
• get valuable insights,
• proactively anticipate customer needs,
• suggest next-best-actions,
• improve loyalty.
Digital Money Management helps banks shift from being money movers to
money managers
R
© Strands Inc. 2015
The new technological developments are without doubt the real game-changer.
FinTech start-ups and large technology-driven entrants such as Apple,
Amazon, Alibaba and Google, pushed by shifting customer behaviors, are
bringing innovative products and services to a conservative industry which is
banking. In the long term, this technological change will have the most profound
impact on financial organizations, followed by demographic change, social and
behavioral change, and the rise and interconnectivity of emerging markets.
BANKS NEED TO SWITCH FROM PRODUCT CENTRIC TO CUSTOMER
CENTRIC BANKS
600 Banks Worldwide Powered by Strands
© Strands Inc. 2015© Strands Inc. 2018
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THANKS!
Sanziana Gheorghiu
Sales Manager Africa
@SanzianaG