Super apps, banking-as-a-service, behavioural banking and cyber security. These are some of the trends that are expected to be a focus of the banking sector in the coming years, says Capitec’s chief information officer Wim De Bruyn.
“The financial services world is moving toward making more clients’ banking activities and relationships digital. In China, super apps like WeChat allow you to bank, shop and entertain yourself all from a single app. Across the world, banks are beginning to investigate similar functionality that will help clients to live better.
“We want to continue to be at the forefront of that – enabling digital by putting data to work helps our clients live better as it makes banking even more simplified and personalised,” he said.
De Bruyn outlined some of the features coming to Capitec clients in the near future.
As banks become increasingly reliant on data, De Bruyn expects communications to customers to become increasingly personal.
“It is estimated that the amount of data created over the next three years will be more than the data created over the past 30 years. This information allows organisations to analyse client behaviour and craft more personalised suites of products and services using machine learning,” he said.
This means an end to unnecessary notifications about loans you may not want or need. Banks will use your data to create personalised prompts that serve you something that adds real value, he said.
“With over 10.1 million digital clients, we can collate immense amounts of data, which we then use to give hyper-personalised prompts to help our clients improve their banking behaviours – and ultimately, their lives.”
In May, the Ombudsman for Banking Services reported a 7% increase in complaints with most relating to fraud.
De Bruyn noted that Capitec has now entered an agreement with Sky QR, a digital security firm that allows users to securely verify documents and information through a QR code.
“Document fraud is a major issue in South Africa. Scammers often intercept invoices and then change the banking details to reflect their own. Others use fake pay slips 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 partnership started over a year ago. Capitec clients know that their bank statements and payment confirmations are trusted.”
Banking without a bank
Banks are getting better at making sure that clients always have uncomplicated and efficient access to their money, De Bruyn said.
“Through the idea of banking-as-a-service, a concept that allows banks and non-banks to give clients a more seamless offering, many companies will soon be able to offer a wide range of retail banking services.
“A good example of this is being able to take out a loan or payment services without needing to directly engage your bank. With the widespread use of smartphones, these types of transactions have become a cheaper, more convenient, and safer alternative to cash.”
De Bruyn noted Covid-19 has helped to accelerate adoption of these trends. We’re continuously innovating to make payments more frictionless.
“A lot of attention will be given to ‘small’ innovations that create positive changes in our clients’ lives. For example, RoundUp empowers clients to save without having to think about it.”
Using ‘Round Up’ purchases will be rounded up to the nearest R2, R5 or R10 – depending on which value you choose – and then transferred to a savings account.
De Bruyn also appointed to the bank’s ‘Interest Sweep’ function, with any monthly interest customers earn on their main transactional savings account balance automatically transferred to their saving account.