Banks need to rethink the way they design their user interfaces as a new generation emerges, says Herman Singh, Standard Bank's director of architecture and technology engineering.
Speaking at Terrapinn's second annual African Banking Congress in Sandton this week, Singh said the new generation was marked by, among other things, radical changes in education, little loyalty and high brand awareness.
Singh said this necessitates changes in user interfaces. However, at the same time, banks are starting to run out of new channels.
"There is a limited number of ways to transmit data," he noted. "So we probably won't see huge innovation in channels, but we will see new and improved products and services."
The challenge is to develop and create new markets while increasing share in existing markets, he added. Consequently, banks have to become centres of innovation. The world's top 20 banks hold more than 15 000 patents.
Security and authentication
Singh said technology is doubling all the time and continuous advancements will force the financial services industries to embrace and understand these technologies - as well as understand the risks associated with them.
"VOIP will quickly become a must-have tool," Singh noted. "But we've seen the first version of a phishing attack via VOIP."
Phishing is the practice of tricking consumers into revealing their online passwords and other sensitive information by luring them to fraudulent sites that appear to be those of banks or other legitimate businesses.
Singh said the VOIP-based scam uses a recording made from a bank's support centre to trick clients into giving information.
"They can also hit you with a denial of service on your phone system. Imagine what that can do to your business."
As the amount of data increases rapidly, there will be an increased focus on security and authentication, especially around digitisation. "If I steal your password, you can change it. But if I steal your voice or fingerprint, what can you do?" Singh asked.
Other future trends will see bank branches turn into retail outlets, and an increase in the importance of partnerships with service providers.
Interfaces that need to be embraced include video conferencing (which could, for example, put a specialist in sign language at the service of hearing-impaired clients), Internet micropayments where clients could use multi-digit numbers to make payments, operating like current top-up vouchers for cellphones, and biometrics.
"A study in the UK showed that the majority of customers would change banks if another bank could offer them biometric authentication."
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