There is a constant rise of millennial customers who are embracing technological developments for carrying out their daily transactions; this generation depends more on gadgets as compared to the older generations. This means that banks now have an opportunity to meet the needs of this new generation if they embrace financial technology for advanced banking solutions.
Simpler and Convenient Payments
Use of technology in the banking and financial sector has simplified payments all over the world. For instance, in Africa, mobile money has catalyzed fintech growth in countries like Rwanda and Tanzania where mobile and internet penetration has increased. In Kenya, internet and mobile penetration has advanced and this has led to the establishment of more fintech companies in the region like NLS Banking Solutions.
For instance, there is a customer centric technology based design that is deployed by NLS that has all features which will guarantee to meet the changing demands of the customers. Technological innovations like these have helped to eliminate time wastage and transportation costs incurred by customers when they visit ATMs to access their money. Smartphone-based technologies like the one instigated by NLS are focused on streamlining all money transfers so that financial services can be delivered to the mass market.
Innovates the Traditional Banking System
Financial technology has made major impact on the traditional banking system worldwide. Banks and financial institutions in the West have embraced the innovative solutions offered by fintechs which means that developed countries need to do the same so that they can reach millions of unbanked people who possess mobile phones but lack bank accounts.
Technology has made it possible for banks and financial institutions to consider different tactics and strategies that they could invest in so that they can increase productivity and reach more customers.
Gain More Market
Owing to technology, banks and financial institutions are now able to make their products and services more customer centric by ensuring that they keep up with all advancements and requirements that the customers demand.
Fintechs like NLS Banking Solutions have helped banks implement solutions which connect every aspect of the customer interactions with the bank; this has made it easier for the customers to access more services both online and in person. Furthermore, NLS has deployed use of data analytics for banks so that they can acquire targeted information on incentives and opportunities that are necessary to them. As a result, banks and financial institutions get insights to all kinds of customers. Data analytics as well as robo-advisory have made wealth management increasingly accessible to every customer.
Banks have always been concerned about security and this has led them to look for new ways in which they can increase security to their services and transactions. IBM predicted that by this year financial institutions will increase their spending by 20% on advanced security based authentication techniques as a way of gaining digital trust with customers. Evidently, customers are now more comfortable carrying out their transactions online through their smartphones.
It is predicted that banks will soon use voice prints and facial recognition to authenticate payments in order to eliminate the inconvenience that comes with having to memorize passwords. Biometric authentication techniques can simplify the security processes as well as offer secure methods of authentication.
Currently, banks in Kenya should consider the use of application programming interfaces in connecting applications that include mobile apps to the back-end office which will lead to increased services.
According to the Financial Brand, 87 percent of banks in Africa intend to use APIs to perfect real time payments and open banking. APIs help banks gain control over their customers’ digital experience especially when they want to protect their brand.