Lots of changes have happened in banking. Internet and mobile banking have redefined banking convenience. It is no longer a battle of who has the biggest head office and branch network. It is which bank is nimble and most innovative for effective customer convenience. What are your delivery channels – web, mobile (app and USSD), and integration to the payment ecosystem? If your customers cannot open an account online, check their balances, transfer money between bank and mobile, withdraw via agents or mobile money kiosks, and of course paying bills at any vendor.
Modern banks have gone beyond a software banking app to a platform one. And that is where the future lies. How to enable innovators leverage from your mobile banking system to provide more services to your customers beyond just banking. That is the future covid19 is directing us.
Technology is a competitive weapon in driving service quality at scale. The threats to banks are not just about themselves – but from other entities that don’t have banking licenses. Unless banks create opportunities for partnerships with tech-innovators and solutions providers, banks risk losing the battle. If telecoms obtain banking licenses and start offering financial services, the same way as Alibaba’s ANT financial services do, many banks could be “cooked.” However, integrating with technopreneurs to allow them to leverage on the bank’s platform to offer more services to bank customers is a gamechanger and that is what should be agenda number 1 in banking board rooms.
The future is interesting. Isn’t it?
What keeps your Board and top executives up at night? How are you leveraging from technology for a competitive advantage? Which capabilities are needed? Which core systems must be developed? Which opportunities to pursue and how?
The coronavirus pandemic has created a technology revolution. You must create capabilities that enable fast technology deployment and adoption or risk high churn rates as customers move to ready banks.
Are you ready?
Join us at our upcoming webinar on the #covid19 response and recovery strategy and learn the four steps to win amind a pandemic.
Copyright Mustapha B Mugisa, 2020. All rights reserved.