South Africans\u00a0will see a number of\u00a0areas in the financial services sector impacted by technology in 2017, according to Mark Walker, associate vice president for Sub-Saharan Africa at global market research group International Data Corporation.<\/p>\n
These include\u00a0customer relationship management, the processes of banking, and the regulatory environment within which these financial institutions operate in.<\/p>\n
However, while Walker noted that in addition to continued technological trends of improving customer service and automated banking processes, 2017 could also be the year we see telecommunications players enter the banking arena.<\/p>\n
“The biggest challenges they face are in obtaining banking licenses, existing competition and monopolies, and being able to comply with the regulations associated with having a banking license,” said Walker.<\/p>\n
“That said, these companies will make forays into the banking environment on a partnership or shared-risk type model. They will partner with the smaller, already licensed financial institutions, and will then introduce FinTech using technology.”<\/p>\n
Walker cited the continued pressure of banks and telecommunications companies to continue to perform and grow as a possible catalyst for this change in 2017.<\/p>\n
“They both have access to customer data that they can utilise to offer new and innovative products and services. Already we know that the telecommunications providers are looking for ways to increase their market share and profitability, and this approach creates an opportunity for them to do so.”<\/p>\n
However, Walker noted that the shift to financial services wouldn’t happen overnight. Instead, as telecommunications companies begin to dip their toes in the financial services market, he expects a\u00a0“wait and see” scenario as to how the public reacts to these new players.<\/p>\n