In 1992, the first smartphone, Simon - a bulky walkie-talkie-like device - revolutionised the mobile market as the first cellphone that allowed users e-mail access and sending and receiving of faxes. Today, smartphones* and tablets have completely changed the way people communicate. From big data, WiFi hotspots, social networking, and convenience necessities that come with smart devices - users have become accustomed to instant gratification and a world that is constantly shrinking due to the technological advances.
With the advent of the app stores in 2008 came further diminishing of the communication gap, with users being able to manage their whole life from a single device. Now the consumer can catch up on the news, weather, check train and plane schedules, play a quick round of Angry Birds and bank from the comfort of their living room.
If anything, 2013 was a clear indication that the world is but on the brink of what technology will enable users to do, and it is no different for the banking industry.
2013 marked the year in which all four of the major retail banks had a banking application in app stores, with First National Bank being first to market in 2011 and the last entrant releasing its version in the first half of 2013.
Technology has enabled banks to provide customers with innovative and easy banking, but it seems to have done much more than this: it has provided banks with the opportunity to revamp the financial industry from boring and bland to an industry that is not only becoming sexier, but in which customers are increasingly becoming more loyal towards their chosen brand, in some cases stating: "I love my bank."
The idea that customers want service and information instantly, and the fact that they are no longer satisfied with run-of-the-mill products and content, will drive product developers and marketers to make sure that content and interaction with their brands become more tailored to the individual's needs.
Tailor-made
In the world of big data (massive databases connected to each other in the cloud), companies will examine digital behaviour patterns to market products that are relevant to an individual's lifestyle.
I imagine the day when my daytime coffee run at 3pm is interrupted at 2:45pm with a message on my phone to get a free muffin, because it's my 10th purchase today at my favourite coffee shop. On my way there, when I pass a clothing store where I hold an account, I get reminded of my monthly instalment and my bank's app immediately asks me whether I'd like to make the payment.
By putting together information from various sources, this will become possible, ie, fuzzy logic - a form of artificial intelligence. An article in the New York Times** shows how a US retailer is able to construct models to determine stages in peoples' lives based a variety of information at their disposal.
Right here, right now
It is highly probable that 'mobile' shopping is the very next step of the human bartering evolution. See it, want it, snap it, and buy it. Consumers' patience will no longer be tested by waiting for a South African launch date of a product. Online shopping apps will allow consumers to snap an item, confirm the transaction, and decide whether they want it delivered to their home, workplace, or even to where they are at the very moment.
Developments such as these are changing the life of the consumer, and the way in which products and services are designed and marketed, drastically. However, hindering the speed of technology adoption in SA is reasonably priced technology and affordable and quality data connections.
2013 was a clear indication that the world is but on the brink of what technology will enable users to do.
Reducing data costs started receiving attention in 2013, and recent trends and developments show the country is on course to much cheaper and faster bandwidth. SAT-3, introduced in 2001, was SA's first real exposure to high-speed bandwidth. However, in recent years, there have been newer and faster international bandwidth links brought by Seacom (July 2009), EASSy (July 2010), and WACS (May 2012).
Telkom opened up ADSL line speeds up to 40Mbps in 2013, and recently, the minimum line speed was set at 2Mbps. ISPs now have the challenge of offering high-quality data where user limits are not imposed to those who use high-bandwidth services. This may result in restrictions to fairly allocated bandwidth for services like torrents and P2P sharing.
From a mobile point of view, industry talk at conferences like the Mobile World Congress, held in Barcelona in 2013, centred on themes such as mobile commerce, connected living and connecting the next one billion, of which the predominant focus is Africa and Central Asia. This will lead to necessities like mobile commerce and payments, healthcare and education mobile solutions, to educate and help people become economically active and connected no matter where they are. The enabler of this is, according to the 2014 Mobility Report findings, data spend has more than doubled since 2010, while voice spend has reduced by 12% since 2010.
Imagine the possibilities when education in rural areas becomes possible, thanks to technology, proper infrastructure and competitive pricing.
In my opinion, during 2014, more 'first steps' on mobile will start to emerge. Mobile no longer has to be complementary, but can become primary and permanent. Pre-2014, mobile was a cool way of 'also' having your bank, account, status, etc, in your pocket. Post-2014, this will be primary and desktops will need to take second place.
South Africa is on the brink of the era of mobile engagement, and the growth curve of the connected industry is about to exit the early adopter phase and start moving to the bigger and faster early majority phase of technology adoption. As it continues to permeate users' lives, without them even realising it, they will need to learn how keep up with the 'smart' life. Although a lot still has to be done as far as Web services, device integration, and bandwidth accessibility is concerned, expect to be astounded by the rate at which users add on to their everyday tech-speak, like Googling, posting, tweeting, skyping, poking, touching and swiping.
* http://www.livescience.com/37399-futuristic-smartphone-features.html
** http://www.nytimes.com/2012/02/19/magazine/shopping-habits.html?_r=0
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