Super Apps, Banking as a Service, Behavioral Banking and Cyber Security. These are some of the trends that are expected to be the focus of the banking sector in the coming years, says Capitec CIO Wim De Bruyne.
“The world of financial services is moving towards doing more customer banking and digital relationships. In China, super apps like WeChat allow you to do banking, shopping and entertainment from one app. Banks around the world are starting to explore similar features to help customers live a better life.
“We want to continue to be at the forefront of this process – digitalization through the use of data helps our customers live better, as it makes banking even more simplified and personalized,” he said.
De Bruyne talked about some of the features coming to Capitec customers in the near future.
As banks become more dependent on data, De Bruyne expects customer interactions to become more personal.
“It is estimated that the amount of data created over the next three years will be greater than the amount of data created in the last 30 years. This information allows organizations to analyze customer behavior and create more personalized sets of products and services using machine learning,” he said.
This means an end to unnecessary notifications about loans that you may not need or need. According to him, banks will use your data to create personalized tips that will bring you real benefits.
“With over 10.1 million digital customers, we are able to correlate vast amounts of data, which we then use to provide hyper-personalized tips to help our customers improve their banking behavior – and ultimately their lives.”
In May, the Banking Ombudsman reported a 7% increase in complaints, most of which were related to fraud.
De Bruyne noted that Capitec has entered into an agreement with Sky QR, a digital security firm that allows users to securely check documents and information using a QR code.
“Document fraud is a major problem in South Africa. Fraudsters often intercept invoices and then change bank details to reflect their own. Others use false payrolls to secure loans they cannot afford.
“Using Sky QR, Capitec has achieved a reduction in the number of fraudulent documents in circulation, with more than 85 million QR codes generated and scanned since the partnership began over a year ago. Capitec customers know their bank statements and payment confirmations can be trusted.”
Banking without a bank
Banks are getting better and better at ensuring that customers always have easy and efficient access to their money, De Bruyne said.
“With the idea of banking as a service, a concept that allows banks and non-banks to provide customers with more convenient offers, 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 having to go directly to your bank. With the widespread adoption of smartphones, these types of transactions have become a cheaper, more convenient and safer alternative to cash.”
De Bruyne noted that Covid-19 has helped accelerate the adoption of these trends. We are constantly innovating to make payments more convenient.
“A lot of attention will be paid to the “small” innovations that create positive changes in the lives of our customers. For example, RoundUp allows customers to save money without even thinking about it.”
When 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 Bruyne is also assigned to the bank’s “Interest Sweep” feature, whereby any monthly interest that customers earn in their main operating savings account is automatically transferred to their savings account.