In South Africa, banking institutions have invested heavily in information technology. As the world moves more towards digital solutions, banks have had to transform their products and services accordingly. As a result of the fast technological advancements, it’s become evident that a lot still needs to be done to address the interplay between digital and physical financial solutions.
The development of the banking industry indicates that banks insist on wanting to transform the way that South Africans bank.
Trends in the digital transformation in banking
Banks are constantly seeking new skills as they roll out new functionality across corporate banking, retail banking, insurance and finance services.
There has been an influx of innovative fintech and digital banking competitors against conventional bankers.
The four largest banks in South Africa have mobile applications. These apps have been designed to make it easier for customers to transact, without having to visit a branch or having to spend hours waiting in long queues.
FNB, Absa and Standard Bank in South Africa have released contactless card payment instruments. This eliminates the need for cards to be inserted into terminals at pay points and instead, customers can simply tap their cards at the pay point to pay.
On a global scale, banking institutions are expected to buy the very fintechs and digital banks that are disrupting their business.
Bank branch closings are expected to accelerate as more banks use digital banking solutions. With the digital transformation in banking, the need for branches is waning and banks are slowly adapting to this change.
Customers are increasingly adopting mobile and online banking, so banks are also offering simpler and more convenient banking services.
More banks are expected to scale back on the physical world and will be investing more in the digital world.