The advent of banking apps, cashless payments and "futuristic" bank branches over the past 10 years are indicative of what we can expect in the near future, says head of dotFNB Kim Gibson-Van der Walt. "These things have already indicated a shift in banking from bricks to clicks."
Gibson-Van der Walt and MD of World Wide Worx Arthur Goldstuck recently unpacked the fast-paced banking technology innovation SA has seen in recent months, forecasting what the country could expect to see in the space in the near future.
This is just some of the trends consumers can expect to see in the banking world:
1. Banking in a retail environment: Easier and simpler are keywords for the branch of the future, characterised by fewer boundaries and easier access. The branch of the future will move away from the banking halls to the high foot traffic retail areas where it will, unlike traditional branches, operate according to normal retail hours and sell products and services that support customers' banking needs.
2. A space for the community: The trend of moving from a traditional branch to an engaging environment means bank branches will become a place that can be transformed into after-hour community spaces - where activities such as networking events and sessions with speakers can take place.
3. Kids banking: Banks have realised the importance of introducing children to financial concepts from an early age in order for them to integrate banking and the management of their finances into their lives. Teaching children about money and saving can be done through introducing educational entertainment via apps and other interactive technology.
4. Gamification and wearables: Gamification is expected to make an appearance in the future of banking. Today, says Gibson-Van der Walt, more people are using their phones to play games than to make phone calls. "Identifying user trends such as these open up new ways of engaging with customers."
5. Mobile banking: According to Goldstuck, the primary way of accessing banking in the future will be through mobile devices of which the uptake is increasing rapidly in South Africa: "At the end of 2013 the number of smart phones in use in South African was 16million - almost a third of the countries' population - and it can be expected that this base will increase by at least two million in 2014."
Banks will continue to be one of the industries that are the quickest on the uptake of new technology, says First National Bank (FNB). "But the speed at which it is rolled out and adopted will depend on the market in which the banks operate."
Gibson-Van der Walt says SA's banks need to ensure that the gap between the early adopters and those hesitant to use technology is bridged. "The balance between technology and human-centricity in branches can facilitate the process of migration so that future banking trends can seamlessly be integrated and adopted resulting in both the bank and the customer enjoying the benefits of what technology has to offer."
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