INDUSTRY WATCH
A RECENT REPORT BY DISCOVERY BANK IN PARTNERSHIP WITH BCG , FOUND THAT MOST SOUTH AFRICANS ARE FULLY READY TO DO THEIR BANKING DIGITALLY .
Banking , like many other sectors , has responded to rapid change and evolving customer needs by developing a digital strategy . Banks in South Africa are increasingly using new technologies , digital solutions and data analytics to reimagine and enhance customer service and provide personalised offerings . Data increasingly holds the key to a positive customer experience , especially for banks prioritising sustainability .
A growing body of research illustrates how widespread the shift to digital is . A recent report by Discovery Bank in partnership with BCG , the Future of Retail Banking , found that most South Africans are fully ready to do their banking digitally .
Nearly all customers , 86 %, expressed a preference for conducting their day-to-day banking digitally , while approximately 60 % said they would be comfortable with a completely digital full-spectrum banking offering . Over two-thirds , 69 %, of South Africans believe that local banks will have transitioned to a fully digital banking experience by 2027 .
Other banks who cater for the less sophisticated customers who may be willing to use digital banking but have no access to mobile devices , computers / laptops or data will continue to need physical presence . Where physical presence is required , their branch will need to have more self-service ports to give customers the digital experience and the ability to self-service .
For economies that may still have challenges with physical infrastructure , digital solutions can help overcome barriers to ensure all parts of society have access to services critical for their well-being and aspirations .
In this increasingly digital age , data holds the key to meeting customer needs more than ever before by personalising products and services to a customer ’ s unique profile and behaviour . As data continues to grow in volume , velocity and variety , retail banks need to safeguard and protect it , especially more sensitive customer information .
The good news is data can now be managed throughout its lifecycle so that it is better organised , more accessible , and secure . Key to effectively converting data to actionable insights securely is an organisation-wide information lifecycle management framework that is comprehensive across how information is collected , used , stored , and then safely disposed .
Future of banking
It is evident that the digital future of banking , underpinned by the power of data , is both inevitable and imminent . What is also inevitable is that the future of banking needs to be sustainable .
Research on organisational resilience , conducted by Economist Impact with C-Suite executives , found sustainability to be a top five business priority alongside areas such as digital transformation and cybersecurity . As businesses develop and communicate their sustainability credentials , those who embrace sustainable solutions will have the edge .
Sustainability is quickly becoming the next frontier of competitive advantage for banks and is a pillar for future growth . According to another BCG report , introducing environmental , social , and governance , ESG-related products in core business lines could generate substantial revenue for retail banks globally and in South Africa .
www . intelligentcio . com INTELLIGENTCIO AFRICA 65