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Disruptive digital drives banking future

Disruptive digital drives banking future

The parent of Bank Windhoek, the Capricorn Group has established a full-time digital division headed by Abri Nel as the Chief Digital Officer. Nel and his team is tasked to make the Capricorn Group a digitally enabled financial services provider.

Explaining the need for banks to enter the digital space, Capricorn listed several disruptions caused in the traditional banking sector by new, innovative technologies.

“Technologies disrupting the traditional banking model include peer-to-peer payments (e.g. PayPal), new payment technologies (such as Bitcoin, Samsung Pay and Google Wallet), and even the unbundling of banking by financial technology companies that provide individual services such as loans and wealth management” the group stated.

Banks’ ability to embrace digital technology will determine their future relevance. Capricorn quotes an Ernst & Young report which shows that three quarters of existing customers still prefer dealing with their bank as a bricks and mortar institution, but a disturbingly high 40% of respondents also indicated a decreasing need for conventional banking.

“The success of non-bank competitors lies in their ability to speedily enter the market with innovative products and services that satisfy the need for simple, compelling banking services available 24/7. “Banks can maintain their relevance by creating the experiences their technology-savvy customer’s desire” according to Capricorn.

“The value proposition and customer experience is greatly impacted by the digital channels and capabilities that customers can use. Customers need access to self-service, and the most efficient and practical mechanism is by digital” said Capricorn Investment Group Chief Customer Officer, Ryan Geyser.

Listing several milestones on the digital road, Capricorn stated that Bank Windhoek’s recently launched App for mobile devices will soon have even more capability. These new features will be launched in the first half of this year.

“We need to increase awareness of what we’re doing, which is introducing competitive leading edge technologies that truly add value to customers” said Nel. “That means we cannot become followers of what other banks are doing. Rather, we continue to scan the worldwide market, focusing on specific opportunities that will allow us to leapfrog the status quo.”

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