Social media, coupled with data analytics, gives a more complete picture of the customer but banks face the challenge of having to make sense of masses of unstructured information.
February 15, 2016 | Farrah BrakeRetail banking in the Middle East and Africa has evolved greatly in the last few years as banks introduce new products and leverage innovation to meet customer expectations. However, recent regulatory changes have restricted fees and interest rates. Banks also contend with the market reality of intensifying margin compression. All told, they feel the need to diversify and accelerate growth from new business lines and customer segments by evaluating current market operations and expansion into untapped markets. Amid these pressures, external issues are pushing banks to improve operational efficiency, processes and technology. Liquidity must be managed, customers must be better understood and product quality and service excellence must be prioritised to truly realise required growth.
In the Middle East and Africa banks are investing in technology to digitise processes and speed up decision-making. The Middle East is transitioning from a market share focus to a customer relationship focus phase, with emphasis on technology to customise products and reach the customer. Branches continue to be a physical symbol of the bank’s strength, especially since money is an emotional commodity for most people. While the number of customers visiting branches might be falling every year, customers need the familiarity and security of a front facing relationship. In the past few years, branch penetration was forecasted to fall due to advances in technology. However, branches are not disappearing but are becoming more developed and specialised.
Instead of looking at branches, mobile banking and ATMs as separate segments, banks are realising that these channels are interconnected. For example, ATMs are no longer just cash withdrawal machines, they can be multifunctional, helping customers pay bills or remit money. The industry has also seen technological boosts in channel applications, risk monitoring and payments as well as the emergence of a unified user experienc...
Categories:
Retail Banking, Technology & Operations, Transaction BankingKeywords:MEA, Retail Banking, Branches, ATMs, Social Media, Customer-centric
