Super apps, banking-as-a-service, behavioural banking and cyber security. These are just a few trends that promise to revolutionize banking. With the increasing use of smartphones, billions have access to a complete banking system. For the over 10.1 million people that use Capitec’s digital channels, a host of new innovations in the financial services sector means their banking experience is about to get a whole lot slicker.
The financial services world is moving toward making more clients’ banking activities and relationships digital. Super apps such as WeChat in China allow you to shop, bank and entertain yourself from one app. All over the world banks are looking into similar functionality to improve their clients’ lives. 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.
Banking that is hyper-personalised
The amount of data that will be created in the next three years is expected to surpass the 30 year-old data. Machine Learning can be used to create more personalized products and services by analysing client behaviour. This eliminates unnecessary notifications about loans that you don’t need or want. Banks will use data about you to send you personalized prompts that provide real value.
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.
The Ombudsman for Banking Services reported a 7% increase in complaints, most of which were related to fraud. Security and trust are a priority in the banking sector. They are more important than ever. Capitec has teamed up with Sky QR to secure documents and information via a QR code.
South Africa’s biggest problem is document fraud. Scammers can often intercept invoices, altering the banking details to suit their needs. Some use fake pay slips in order to obtain loans they might not be able afford. Capitec has seen an increase in fraudulent documents since its partnership began over a year ago. Over 85 million QR codes have been generated and scanned. Capitec clients can trust their bank statements, and payment confirmations.
Light on friction, heavy on function:
Convenience is everything. Frustrationless functionality is what happens when simplicity is elevated to science. Banks are becoming more efficient in ensuring clients have easy, fast and simple access to their money through mobile transactions, such as digital wallets, contactless card payments and one-click payment.
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. This is a great example of how you can get a loan or other payment services without having to contact your bank. This type of transaction is now more affordable, faster, and safer than cash thanks to widespread smartphone use.
Covid-19 has contributed to the rapid adoption of these trends. We’re continuously innovating to make payments more frictionless. Clients can make and receive secure cashless payments using our Scan to Pay or Pay Me features. These features are also completely free.
Capitec’s Live Better is another example of how frictionless functionality can help bring real value to people’s lives. Clients can earn cash back on debit and credit card transactions. This money is then paid into their Live Better savings accounts via the app.ThEvery month. This isn’t cash back in the form coupons or exchanges. It is real money in our clients’ accounts to spend on whatever they’d like. It’s a way we’re making people’s lives better, while incentivising greater digital adoption.”
This year, I anticipate a surge in innovation in the frictionless space. A lot of attention will be given to ‘small’ innovations that create positive changes in our clients’ lives. Round Up, for example, allows clients to save money without even having to think about it. To earn more interest, combine our Interest Sweep feature with your main transactional savings account. Users can easily transfer any interest to their Live Better Savings Account.
As South Africa’s strongest brand and best digital bank, Capitec has consistently championed simplicity, affordability, accessibility and personalised service. The best way to achieve these goals is through innovation. We have grown our client base from 25 000 in just 20 years to over 18 million. We want to make banking as simple as possible for South Africans, and to win the trust of millions.