NeoBanks, FinTechs and Financial Institutions have an excellent opportunity to undo some mistakes of prior years and be proactive in their approach to the youngest cohort, Generation Z (16-24 years of age) that is now joining the workforce. Banking to address needs of Millennials and Generation X, still comes across as an afterthought; a paradigm shift in banking in the wake of advancement in technological landscape, rather than a change in banking due to altered tastes and preferences of the demographics.
Consequently, both, Millennials and Generation X have been only somewhat responsive to digital banking and overall reception and acceptance has dragged on, since at least 2009, if not even before.
However, as technology pervades just about every aspect of life and is increasingly being viewed as an extension of real life; youngest cohort, Generation Z, is offering important insights into their relationship with technology, their opinions on societal changes and most pressing economic and cultural aspects.
Dear Reader. "Generation Z: Service Transformation Compliments Digital Transformation; Banking Becomes Utilitarian" is a premium article. If you would like to get access to this article, please pay 1500 USD fee.
Pandemic imposed restrictions have highlighted technical gaps between organizations which have made technology, part and parcel of their daily operations versus those which have not. Consequently, need to transform the organization through digital tools (i.e. software, device and hardware) has become imperative. If we earnestly evaluate, then so called ‘digital transformation’ has been around since 2000s, even though, prior to the pandemic, it was moving at a glacial speed. Start of 2000 was witness to ‘catastrophic’ Y2K, massive dilemma of what would happen when all ledgers which made entries based on last two digits of the fiscal year would reflect ’00?
Dear Reader. "Digital Transformation ++: Two Steps Ahead Technologies, Processes & Ecosystem" is a premium article. If you would like to get access to this article, please pay 2750 USD fee.
For years now, ‘neobanks versus traditional banks’ has been a heavily contended topic. Traditional banks have been consistently shrouded in some controversy since 2008, eroding customer confidence and trust in basic commercial and retail banking. Neobanks or as some may refer to as ‘challenger’ banks (as they ‘challenge’ legacy infrastructure and outdated practices and processes at traditional banks) have stepped up to fill a banking void around customer satisfaction and customer’s best interest. Many express a desire to revamp ‘greedy, money mongering, doesn’t care about the customer’ image of banks.
Whether that impression is rightfully deserved or not,
Dear Reader. "Revised Economics, High Value Add, Diversification, Humility: Salient Features for Building an Elite Neobank" is a premium article. If you would like to get access to this article, please pay 4000 USD fee.
Financial market turbulence compounded by flailing of micro- small-medium businesses has been harsh on most economies. Central banks have the onerous task of outlining new set of rules and measures to counter these upsets. Thus far, most central banks across different countries have responded with agility and transparency. However, actual disbursement of funds to businesses as well as to individuals is administered by retail and commercial banks. They serve as conduits by enforcing central bank’s policies and relay their impact to masses (consumers and businesses) via revised lending and underwriting practices.
Dear Reader. "Reducing Economic Recovery Guesswork by Revamping Capital Conservation Buffer with Advanced Analytics, AI & IoT" is a premium article. If you would like to get access to this article, please pay 4500 USD fee.
Unbanked and underbanked never found refuge at traditional banks as they never met any of their qualifying criteria. Traditional banks also didn’t seem too keen to explore innovative viable business models that would include unbanked and underbanked. Part of this could be attributed to lack of cutting edge solutions such as artificial intelligence, advanced cloud computing capabilities, which are now fairly omnipresent.
They are increasingly being used to gather and process novel insights from structured and unstructured data.
And, remainder of this negligence could be attributed to lack of desire to find specialized ingenuous solutions for this demographic but instead to conveniently write them off.
It wasn’t until Vodafone’s M-Pesa found it’s footing in Kenya, that innovators and policy makers started acknowledging mobile banking as a great enabler for financial inclusion. Through further ingenuity and exploration, innovators with tie-ups with local private enterprises and with the help of government bodies, nurtured these sparks of insights into profitable and sustainable business models. Not many have been able to cross the chasm, so to speak, but there have been significant leaps in recent years due to commercialization of cloud computing and maturing of digital banking and payments landscape.
Dear Reader. "Digital Payments, AI & Human Element Cross the Chasm to Serve Unbanked & Underbanked" is a premium article. If you would like to get access to this article, please pay 3000 USD fee.
As most financial institutions acknowledge the need to ‘digitize’ (embrace technology to automate financial functions and reduce dependency on paper based documentation), they eagerly embrace new jargon, labels and generalizations (read: stereotypes) to showcase their commitment to technological advancement and sometimes, simply from fear of missing out. Yet, it’s these very labels, jargons and generalizations that can severely impact, both perception of the organization and deter acceptance of digital initiatives by customers.
Dear Reader. "Label Marketing versus Understanding Customer: Product Development Toolkit for Digital Banking" is a premium article. If you would like to get access to this article, please pay 4500 USD fee.