Qatar Islamic Bank Accelerating Digitisation to Attract New Customers

Qatar Islamic Bank: Accelerating Digitisation to Attract New Customers

For several years now, Qatar Islamic Bank (QIB) has been steadily scaling up its digital banking services, ensuring that its customers adopt the new digital banking methods and significantly reduce reliance on traditional banking services. This extraordinary foresight to strengthen its digital capabilities has served QIB well not only in normal times but more importantly, in times of crisis. In the midst of the COVID-19 pandemic, QIB has managed to significantly reduce customers’ reliance on face-to-face services made through physically visiting its branches. With an Accelerated Digitization of Banking Services, the Bank has contributed to ensuring the safety of its customers and has allowed them to bank safely from home, while having all their banking needs fulfilled remotely.

Just recently, in recognition of its outstanding digital innovation, Qatar Islamic Bank was awarded Winner, Best Digital Bank of the Year – Qatar, Best Retail Bank of the Year – Qatar and Outstanding Client On-boarding & Account Opening – Middle East at the recent Global Retail Banking Innovation Awards 2020 (GRB Awards) by The Digital Banker.

Globally acclaimed as the most authoritative and transparently judged Retail Banking awards program, the GRB Awards recognises trailblazing banks that are leading with digital innovation, product development, service delivery, customer centricity and customer experience. Making it through is a feat in and of itself, with adjudication panel that includes industry experts from companies such as such as KPMG Digital Village, Imaginarium Advisors, EY and Forrester.

“QIB embarked on a bank-wide transformation program with the primary objective of improving and simplifying the customer experience, modernize the bank’s offerings and introduce an agile methodology to continuously deliver innovative features to attract new customers. Robust profitability and a stable financial performance were underpinned by large scale transformation, which significantly increased digital sales and reduced the cost to the bank,” said Nirav Patel, Managing Director at The Digital Banker during the awards virtual gala. For its part, QIB Group CEO Bassel Gamal said: “We are pleased to be recognized for our innovation and outstanding performance in servicing all our customers. QIB has developed its own repertoire and know-how in offering the best products and services to existing and potential customers, and we are proud that our customer-centric approach is now a reference not only in Qatar but in the region as well.

“QIB will continue implementing its long-term strategy where the customer comes first, and we are always dedicated to offering the best, fastest, and most trusted banking products in Qatar.”

“QIB was the first bank in the region to introduce Instant Finance (One Click Financing), the fastest and fully digital way to obtain personal financing in Qatar in 5 mins.”

5-Minute Digital Onboarding Process

Over the past 2 years, QIB has excelled in welcoming new segments of the community to its extended network of customers in Qatar. Its new digital onboarding process allows customers to open accounts in a fast, simple, and convenient way from anywhere in the world in only 5 minutes.

The new solution makes it easier for prospective customers to scan and submit identification documents, such as passports and ID cards, without any need to type the required personal information. This is made possible by OCR technology that allows the platform to read the necessary information from scanned documents. All the customer has to do is to confirm the information displayed on the app.

Along with an added Live Chat feature, the new solution also offers customers a smart authentication process and an integrated identification system to analyse biometric information and help eliminate fraud as it is linked to Qatar Central Bank and Qatar’s Ministry of Interior databases. In addition, the documents are checked against global compliance databases for blacklisted customers. Using this technology, QIB is now able to validate the documents provided by the customers and cross verify them with their selfie image taken through the journey.

“The new solution makes it easier for prospective customers to scan and submit identification documents, such as passports and ID cards, without any need to type the required personal information.”

Digital Innovations to Bank Safely

At the onset of the COVID-19 pandemic, QIB introduced a number of new features as part of its Bank Safely from Home campaign. As a result, it has seen accelerated digitization of banking services since March 2020, which enabled both retail and corporate customers to use the Mobile and Internet Banking channels to remotely complete their daily banking needs.

QIB has introduced major digital services on its Mobile App, updated its Internet Banking Portal, and launched a new Corporate Mobile App for its corporate customers. Consequently, the Bank has not only seen unprecedented demand of its digital services, but it has also helped anchor the culture of adopting digital banking services across customer channels, a practice that has carried on even after the recent lifting of the government restrictions.

QIB was also the first bank in Qatar to introduce a digital Instant Credit Card solution via its Mobile App late in 2019, giving customers the opportunity to get a full-digital approval on a credit card that will be ready for use within just a few hours. Moreover, QIB was the first bank in the region to introduce Instant Finance (One Click Financing), the fastest and fully digital way to obtain personal financing in Qatar in 5 mins.

For SME’s, QIB has accelerated the Digitization of SME Financing, and QIB’s SME/WBG Financing was introduced as a parametrized financing and automation of standard credit applications that significantly reduced the “time to yes” to 80% and “time to money” to 50% for SME’s. In addition to being one the first banks in Qatar to introduce corporate mobile app (QIB’s Corporate App), the Bank has also implemented a total revamping of its corporate internet banking platform to offer automated features for corporate customers on the levels of payments, transfers, bulk upload of salary files, liquidity management, and positive pay, post-dated cheques, in addition to FD and CD account opening and other services.

With initiatives such as Instant Finance (One Click Financing), a complete digital onboarding solution, digital Instant Credit Card and SME financing, the bank has utilized digital channels to reach its customers effectively.

 

>> To read more about this story and other exclusive features about the digital banking landscape, download the latest issue of The Digital Banker Magazine HERE.

cimb

CIMB THAI Bank: Digital-led bank delivers value through memorable moments

CIMB THAI Bank demonstrates its digital transformation not just in its products and services but also in its marketing strategy. As part of CIMB THAI’s transformation into a digital-focused bank, the team has launched a brand-new mobile app, CIMB THAI Digital Banking app, in the latter part of 2018 to replace the web-based legacy CIMB Clicks platform. Then in July 2020, it launched a digital savings product that has caught the attention of many Thai customers for its uniqueness and fun vibe. The campaign is so successful it became a hot topic on social media and boosted account openings during the campaign period.

As such, it comes as no surprise that CIMB THAI Bank has been conferred the award Winner, Best New Product Launch and Outstanding Digital Marketing Initiative at the recent Global Retail Banking Innovation Awards 2020 (GRB Awards) by The Digital Banker. This exceptional accolade recognises CIMB THAI’s excellent achievements in the area of digital innovation and customer centricity.

Known in the industry as the world’s most credible and transparently judged Retail Banking awards program, the GRB Awards gives honour to the industry’s best in business, whose initiatives blend top-notch technology with service-oriented mindset to raise the bar in consumer banking. Judging this year’s select winners in retail banking are impartial adjudicators from companies such as KPMG, Digital Village, Imaginarium Advisors, EY and Forrester.

“CIMB THAI Bank places strong emphasis on customer experience as it pursues its digital transformation initiatives. By coming up with programs that excite its customers while offering maximum banking convenience at the palm of their hands, the Bank has been able to make digital a catalyst of value,” said Nirav Patel, Managing Director at The Digital Banker during the awards ceremony.

‘Chill D’ Savings Account: CIMB THAI Bank’s first truly digital product

Since 2018, CIMB THAI has been undergoing a digital transformation journey to spur further growth of its  Consumer Banking arm. Pivoting towards digital presents CIMB THAI Bank with a compelling opportunity to compete with larger Thai banks that have a bigger branch networks and customer reach. Thus, CIMB THAI Digital Banking app was born. The new mobile app offers user friendly interface, with more features compared to its predecessor. Since then, it has gained traction among its users, with fund transfer increasing from about 1,000 in Jan 2019 to more than 170,000 in Jan 2020. 90% of fund transfer transactions and more than 50% of mutual fund subscriptions are now performed via the digital app. Moreover, 80% of those mutual fund subscriptions have ticket sizes below THB50k, further validating CIMB Thai’s strategy of using digital channels for the mass affluent segment.

CIMB THAI Bank launched a digital savings product called ‘Chill D’, which is a play on a common Thai slang, “Chill Chill”, which means, to relax.

As part of its efforts to acquire new customers and further enrich the features of the new digital app, CIMB THAI Bank launched a digital savings product called ‘Chill D’, which is a play on a common Thai slang, “Chill Chill”, which means, to relax.

The ‘Chill D’ Savings Account is the Bank’s first truly digital product, with three key propositions that make it unique and special:

  1. Zero fees – everything is free including Chill D debit cards with no annual or sign up fees, zero FX fees, and free unlimited cash withdrawals at any banks’ ATM machines. This means that customers have the widest choice of ATM networks to choose from, at no additional cost to them.
  1. Attractive interest rate – the Chill D Savings offers a maximum interest of up to 2% p.a., which is the highest in the market. This is particularly attractive in the current low-interest rate environment.
  1. Convenience – clients no longer have to go to a bank branch to open an account. They can open an account via CIMB THAI Digital Banking app for only 5 minutes and authenticate at any 7-Eleven stores nationwide with more than 13,000 locations. Using a similar concept as the no-fee ATM withdrawal strategy, by leveraging on 7-Eleven’s extensive store network across Thailand, CIMB THAI Bank made it even easier for customers to authenticate their account opening.

The primary target audience of the ‘Chill D’ campaign are those within the age range of 25 to 35 years old, the so-called Gen-Ys, with an average monthly income of around THB30k. This segment has grown up with a digital lifestyle, and are avid consumers of multiple media channels and digital platforms.

Based on these characteristics, the Chill D marketing campaign was heavily focused on social media, while being supplemented by traditional platforms such as video advertising on mass transit systems, posters and banners on buildings and billboards.

The digital marketing campaign proved to be successful and helped boost take-up of both the CIMB THAI Digital Banking app as well as the ‘Chill D’ product. Average daily new registrations of the CIMB THAI Digital Banking app increased by approx. 12%. Meanwhile, the number of ‘Chill D’ savings accounts increased by an astounding 34% after the launch of the ‘Chill D’ campaign based on latest available data.

 

>> To read more about this story and other exclusive features about the digital banking landscape, download the latest issue of The Digital Banker Magazine HERE.

How StanChart Malaysia Used Social Media to Amplify Wealth Management

How StanChart Malaysia Used Social Media to Amplify Wealth Management

Wealth management is a form of financial planning that provides bespoke solutions to a wide range of clients – from the affluent to the high-net-worth or even ultra-high-net-worth. As such, it has always been a high-touch business, where customer engagement is usually conducted via personal meetings and face-to-face interactions. However, in recent years following the rapid growth in social media  usage by the general public, there has been an ongoing shift in the demographics of affluent and high-net-worth individuals towards embracing digital platforms and social media in keeping with this trend.

Given this new reality, Standard Chartered Bank Malaysia Berhad had launched their Facebook Live initiative in 2019, with the goal of expanding its reach to tap into this new breed of affluent and high-net-worth base. Easily, this initiative has provided an accessible avenue for customers to obtain relevant educational content on wealth management and planning.

Just recently, Standard Chartered Bank Malaysia Berhad was awarded Winner, Best Social Media Marketing Initiative at the Global Retail Banking Innovation Awards 2020 (GRB Awards) by The Digital Banker. This exceptional recognition is a vote of confidence in StanChart Malaysia’s ability to execute such an ingenious idea and turn it into a fruitful reality.

Known in the industry as the world’s most authoritative and transparently judged Retail Banking awards program, the GRB Awards gives honour to the industry’s high achievers, whose initiatives blend innovative technology with a service-oriented mindset to raise the bar in consumer banking. Judging this year’s select winners in retail banking are well-respected adjudicators from companies such as KPMG Digital Village, Imaginarium Advisors, EY and Forrester.

“Standard Chartered rolled out the Facebook Live initiative to build awareness around wealth management and engage with clients further. By organizing monthly Facebook live sessions between January to December 2019, Standard Chartered had enabled its customers and audience to have direct access to financial experts, broadening its reach and increasing its visibility in the wealth management space,” said Nirav Patel, Managing Director at The Digital Banker during the awards virtual gala.

Standard Chartered has pioneered Facebook Live streams on wealth management topics.

Social Media and Wealth Management

The fact that social media is such a powerful engagement medium is already a given in this day and age. What’s more interesting though is the rapid rise of live video streams on these platforms – by going live on such platforms, brands can project authenticity in their messaging and draw its audience into deeper engagement. Presenting a video live sends a message to the target audience that the brand is open, transparent, and receptive to feedback.

Standard Chartered has pioneered Facebook Live streams on wealth management topics in January 2019, with the main objective of educating, updating and providing real-time access to financial experts on topics relating to wealth management and planning. To name a few, some of the notable themes covered in these streams are:

  • Global Market Outlook 2019
  • The China Growth Story
  • Asian Multi-Asset investing
  • Goal-Based Investing

Through its launch, it has provided an easy and convenient way to access financial advice from the Bank’s esteemed guest speakers, via the web or mobile devices anywhere, anytime. Furthermore, clients can participate in live sessions through the interactive comment section, or even re-watch the stream at a later time based on their convenience. This initiative has allowed StanChart audiences to have an unimpeded way to express their views, offer feedback and come up with suggestions.

It has also been proven beneficial for the business as it allowed StanChart to access the world’s largest online audience through a platform they use every day, which enables good customer engagement and helps in building brand equity and customer trust. Also by leveraging on the built-in analytical capabilities of Facebook to measure a video’s performance, the Bank has created a new avenue to attract and acquire new customers.

Throughout 2019, this initiative successfully garnered 545k reach, 131k views and 5.1k engagement. As this is still an ongoing initiative, the team continues to learn and adopt better ideas to improve future video content.

 

>> To read more about this story and other exclusive features about the digital banking landscape, download the latest issue of The Digital Banker Magazine HERE.

A silhouette of the business lady

Leadership and The Age of Women in Power

Due to the coronavirus pandemic, the year 2020 has been one of the most unpredictable periods in business and governance.  It was also the year when it became evident that power, just like wealth, could become a transformative tool to effect positive change.

One area where this swift change in power is apparent is among the women of influence on the world stage. For centuries, women have been discriminated against and not given equal opportunity to amass power. But in recent times, the tides have changed in favour of women. It is interesting to note that the pandemic’s impact on society’s social and economic cohesion has largely been managed, thanks to outstanding leadership by many notable women leaders across the globe.

The most influential women worldwide are continuously working hard to ensure that their various areas of responsibilities continue to thrive during and after the pandemic. They are doing this by wielding all the political and economic power at their disposal to address society’s most pressing needs.

The pandemic has also necessitated a change in outdated power structures and systems that society has adopted for years. For females to continue assuming leadership positions and long-lasting progress, there is a need for equitable distribution of opportunities as the world makes its recovery efforts.

KAMALA HARRIS, VICE PRESIDENT OF THE UNITED STATES

Women Leaders on the Rise

There is no question that one of this year’s most historical events has been the election of Kamala Harris as the Vice President of the United States of America, the first woman ever to be elected into this office. She went through a rigorous process to become the first woman to win the vice-presidential ticket and the first African-American to become the president’s running mate. She was also in charge of the second-largest justice department in the United States, where she perfumed beyond reproach.

Women have also infiltrated and achieved incredible feats in other male-dominated areas in 2020. Jane Fraser rose to one of the most admirable positions at Wall Street, and she’s now gearing up to become head of Citi in February.

A seasoned CEO, Jane Fraser has spent the last seven years providing exemplary leadership, first as CEO of the U.S. Consumer and Commercial Banking and CitiMortgage and more recently as CEO of Citigroup Latin America before taking over the reins as CEO of Global Consumer Banking in 2019.

During her tenure in Latin America, Citi underwent a significant restructuring of operations and substantial investment in technology and digital capabilities was made in Mexico. Citi in more recent times has undertaken significant steps to transform its products and services, in the process building a digital ecosystem which fosters collaboration with companies such as Zelle and Google in the US. In her current remit, she is responsible for retail banking and wealth management, credit cards, mortgage and operations and technology in 19 markets.

Just recently, Jane Fraser was adjudged CEO of the Year at the Global Retail Banking Innovation Awards 2020, hosted by The Digital Banker.

Amongst a plethora of criteria, Jane’s shortlisting was mainly attributed to her impressive service and leadership, under which Citi has undergone an impressive digital and physical transformation, synonymous with highly competitive customer satisfaction rankings. The Digital Banker’s panel of judges also takes into consideration the consumer bank’s overall financial performance, growth, digital journey and other key attributes.

JANE FRASER, PRESIDENT, CITI & CEO, GLOBAL CONSUMER BANKING

Equally notable is Christine Lagarde who, in November 2019, became the first female head of the European Central Bank. The bank controls the single currency and monetary policies of the 19-member nations of the Eurozone. In the past, Christine Lagarde was also the head of the International Monetary Fund, an organization consisting of 190 countries, which ensures the stability of the international monetary system.

As the global crisis hits an unprecedented scale, women leaders continue to rise above the challenge and stare down the enemy from the frontlines. Karen Lynch became the C.E.O. of Global Healthcare giant CVS. She is now the first woman to run the biggest S&P 500 company.  Meanwhile, Emma Walmsley is leading one of the most extensive Covid vaccination efforts as head of GSK. Using her leadership role at UPS, Carol Tome is also spearheading the safe delivery of billions of doses of vaccine.

The pandemic has also necessitated a change in outdated power structures and systems that society has adopted for years.

Women Leaders in Political Stage

While political leaders worldwide struggle to revive their nation and economies from the effects of the pandemic, female leaders are showing results worthy of applause.

Sanna Marin, the Prime Minister of Finland and the world’s youngest head of government has devised tough measures to curtail the spread of the virus in Finland. In New Zealand, Jacinda Arden was swift in ordering a lockdown that stunted the virus’s spread both in the first and second waves. The president of Taiwan, Tsai Ing-Wen, also implemented the most effective pandemic response in the world ever since the coronavirus pandemic started.

In Germany, Angela Merkel led a science and wellness-focused pandemic control effort that favours her country’s citizens, not minding the cost.

Despite the challenges of populism in Europe, Markel took charge of the liberal West and exerted her influence against the AfD in Germany.  She has shown outstanding leadership in managing the pandemic and has pioneered the establishment of the E.U. recovery fund.

Thus far, these women’s efforts will, for a long time, serve as a template for leadership across the world, especially during times of crisis. Furthermore, these leaders have demonstrated that gender balance will benefit the world a great deal.

 

>> To read more about this story and other exclusive features about the digital banking landscape, download the latest issue of The Digital Banker Magazine HERE.

These Ideas Will Help the FSI Industry Bounce Back

These Ideas Will Help the FSI Industry Bounce Back

The banking and finance sector today is dynamically changing at a fantastic speed never seen before. It begs the question – how would the next generation of financial services look like? It’s true. Transformation does not occur overnight, but in small, incremental phases.

It will be fueled by an explosive combination of rigorous regulations, investor capital, globalisation and futuristic financial technologies.

Nevertheless, it is equally evident that technological innovation is at the centre of this lightning-fast changes we’ve been seeing of late. Still, what fascinating developments will the next decade bring?

Here are some ideas that will help stimulate growth in banking and financial services:

Reach Out to the Unbanked

The World Bank Report states that over 1.7 billion adult individuals across the globe have no account with any financial or mobile money provider. About half of these unbanked individuals live in developing nations such as Indonesia, India, Nigeria, China, Mexico, Bangladesh, and Pakistan. High-income economies, on the other hand, do not have significant numbers of unbanked individuals as nearly everyone owns an account.

However, statistics also show that about 1.1 billion unbanked adults globally have a mobile phone. Therefore, these mobile phones can be used to access mobile money accounts and other financial platforms. This presents an enormous opportunity waiting to be tapped.  Paired with internet access, there is a huge opportunity for banking institutions to drive financial inclusion.

Statistics reveal that about 1.1 billion unbanked adults globally have a mobile phone. These mobile phones can be used to access mobile money accounts and other financial platforms. This presents an enormous opportunity waiting to be tapped.

Still, these financial services should be designed for unbanked users, many of which are poor, disadvantaged or lack adequate literacy and numeracy skills. The technologies created for these groups will help eliminate the obstacles limiting unbanked individuals from using financial services. Furthermore, providing services to the unbanked will no longer require travelling great distances to meet a need. As such, digital technology will help lower the cost of transaction. Most banks and financial institutions have one core objective – to reach the greatest number of customers possible. Given these facts, it is clear that the unbanked market will be actively pursued in the years ahead.

Get Serious About Blockchain Technology

Blockchain is another trend that will grow in the next few years. About 48% of banking executives in a survey by Business Insider Intelligence stated that AI (artificial intelligence) and blockchain will have the most decisive influence in the growth in the financial sector. No doubt, blockchain will shake the industry globally. As Blockchain drives the new ideology of substituting centralised processes for decentralised finance, it will inevitably drive change in financial systems worldwide. Already, it has led to the creation of a diverse online peer-to-peer (P2P) financial system for monetary dialogues in a decentralised manner. This distributed ledger technology, which gave rise to cryptocurrencies, can help transform existing processes and systems remarkably.

Many cryptocurrencies have been created, and many more will be “mined” soon. Already, several countries are creating their own cryptocurrency. Such a move could significantly push the shift from fiat to cryptocurrencies.  The shift will, in turn, boost coin stability, drive the creation of regulatory frameworks, and make people gravitate more towards decentralised transactions. In fact, some financial institutions are already exploring blockchain technology to uncover how it can help cut costs, improve internal processes and increase efficiency.

Speed up Development of RegTech

Technological innovations present tremendous opportunities. However, the finance industry is heavily regulated. It is essential to realise that technological innovation has also given rise to diverse challenges, including data breaches, cyber hacks, and other fraudulent activities. RegTech was created for this purpose. It involves using innovative technologies to manage regulatory processes in the finance sector. Some examples of regtech include real-time tracking of airliners’ locations and automated monitoring of a company’s compliance with sustainability regulations.

However, even as technology companies, legislators and other stakeholders in the finance industry, work closely together to spring regulatory innovations, it will still take some time before everything comes into fruition. One such example is the implementation of biometric authentication for financial transactions, which has met strong opposition after a high profile data theft case that happened in the US. Notwithstanding this incident, recent studies show that the size of biometric authentication market is fast expanding. By 2023, biometric authentication is expected to have over 2.6 billion users.

 

What to Expect in Retail Banking Technology in 2021

What to Expect in Retail Banking Technology in 2021

Many people envisioned that the 2020s will be a decade of ground-breaking digital banking transformation, seamless innovations and technological advancements that greatly improve user experience.

These advancements are geared towards helping banks decrease cost-income ratios, increase return-on-equity ratios and improve their efficiency through and through. For example, Open Banking, which allows third-party applications to access bank accounts, is adding tremendous value to all parties concerned. Such systems have created an opportunity for companies like Apple, Facebook, Google and Amazon to compete favourably by splitting the value chain into manufacturing and distribution.

Due to the effects of COVID-19, consumer demand for more flexibility and control are driving the need for new tools and technologies.

Banks are now tasked to create new strategies and innovative solutions using available data, digital technologies, novel delivery platforms, and transactional and behavioural analytics.

Future retail banking trends are expected to improve customer experience by facilitating faster and smoother transactions. Here are a few trends expected to disrupt and shape the retail banking industry in the year 2021:

Banks will need to be proactive in recognising the changing needs of customers at the exact time they need them, as having the right products and services will no longer be enough.

1. Artificial Intelligence will drive a shift in the business model

Stakeholders in the banking industry believe that Artificial Intelligence (AI) will be the most consequential technology in the sector.

They expect that AI will play a huge role in creating an improved and personalised user experience, supporting new businesses and in strengthening portfolio management through the use of advanced investment algorithms.

Furthermore, banking executives are optimistic about using AI in fraud detection and improving back-office functions to trace anomalies in future business plans.

Business executives all over the world have invested heavily in the development of artificial intelligence. This massive investment was done to strengthen cybersecurity, curb cybercrime and prevent a breach of data.

The viability of AI depends on its expandability. Regulators require that banks must only use explainable AI. EU’s GDPR, for instance, has introduced a “right to explanation” mandate to guide AI algorithms and other new technologies.

If AI denies a customer loan, for instance, it is necessary to explain to the customer what the reason for this decision is, guide them on alternative ways of sourcing for what they need, or help them solve this problem.

2. Banks will overhaul business models to create digital ecosystems

As new banking technologies come into existence, banks have been changing their business models to be in tune with current trends. They have had to extend their most vital services from strictly branch operations to the internet and mobile banking, thereby providing more access and control to customers from any location. Basically, only the mode of access to banking services has changed. The banking services, on the other hand, did not change.

The digital ecosystem model adds more push to these changes. Ecosystem banking model is based on intuitive self-leading software which studies customer needs and integrates them into banking to create offerings that provide solutions to these needs. Just as mobile banking brought banking to customers’ fingertips, ecosystem brings human needs into banking. It is built on cloud, open APIs, explainable AI and other critical elements of modern banking technology.

3. There will be an increased expansion in Open Banking

Open banking is a banking initiative that allows third parties access to a bank’s APIs. While many people think that open banking is a European issue, the reality is that it is a derivation from traditional business practices that allow third parties to access banking data and functionality. Open banking is also called banking-as-a-service, banking-as-a-platform, open APIs, and API banking.

Open banking seeks to help financial institutions ease the burden of providing customers with seamless financial services without the usual hassles. Fintech companies and other retail banking institutions are already taking advantage of the API banking ecosystem to ease financial hassles involved in making and receiving payments, buying homes, and general financial management. This trend is expected to advance in 2021 and beyond.

4. Wider Acceptance of Real-Time Financial Products

As digital banking accelerates, there will be an increased need for real-time financial products. In 2021, real-time payment is expected to be the norm. Creating real-time experience will no longer be a challenge to the banks. The new challenge would be in creating ways to better compete with other banks in real-time payments.

Real-time payments will rely significantly on APIs. As such, the retail banking community can play a central role in putting up robust and innovative real-time transaction services that will attract individual customers as well as fintech companies.

As digital banking accelerates, there will be an increased need for real-time financial products. In 2021, real-time payments is expected to be the norm.

5. Always-on Invisible Banking will become the Norm

Invisible banking refers to the new trend where financial institutions can integrate their financial services into their customer’s everyday life. Direct deposit is an example of invisible banking.

Today’s technology-driven, always-on world is one where business opportunities appear and disappear in just a snap. Experts believe that in the nearest future, banks will need to be proactive in recognising the changing needs of customers at the exact time they need them, as having the right products and services will no longer be enough.

A Unique Opportunity

Banks are struggling to keep up with the effects of the pandemic, the dynamism of the tech world, and the increased operational pressure from customers.

In all of these, however, banks still have their resources and customers’ trust. Hence, if they implement the right strategies, and adapt adequately to the advanced technologies in banking and the digital ecosystems, they will still succeed in the long term. These changes, when implemented, will also help banks cut cost, become more efficient and achieve the required flexibility to weather future storms.

 

>> To read more about this story and other exclusive features about the digital banking landscape, download the latest issue of The Digital Banker Magazine HERE.

Taishin Bank’s evolving transaction services ecosystem

Taishin Bank’s evolving transaction services ecosystem

A one-stop solutions for all transaction services, Taishin Bank (TSB) caters to all customers right from small enterprises to the large corporates. Across all the solutions that it provides, customers primarily look for the services related to cash management and trade finance. A majority of the bank’s clientele consists of large corporates who have operations across the country and the neighboring countries. As a result, TSB launched its state-of-art solution – GB2B, a highly modularized and parameterized corporate internet banking platform and an app which provides a flexible and seamless transaction banking experience to its clients. GB2B is a single platform where both domestic and international conglomerates can access integrated services across liquidity, cash management and trade finance.

A solution-oriented approach

As customers become more tech-savvy and sophisticated, Taishin Bank noted that, customers are far more open to offerings from new entrants and while they expect improved and enhanced services from traditional banks. This served as an impetus for TSB ‘to adopt a solution-oriented marketing approach coupled with their banking experience by integrating the plural financial products and resources’ across their transaction services. The bank stepped up to offer physical and virtual channels to its customers across all lines of the transaction business. However, its diversified clientele enabled the bank to also cater to requests related to trade finance. In trade finance, the bank offers diversified products such as import and export OA loan, letter of credit finance, factoring and so on.

With iHub, the bank’s corporate clients and third-party service providers can seamlessly augment their complementary specialties and offerings to the end customer.

Catering to a diverse clientele via iHub

Staying ahead of the curve, Taishin Bank created a Direct Link API platform – iHub dedicated to help serve its clients’ requirements. With iHub, the bank’s corporate clients and third-party service providers can seamlessly augment their complementary specialties and offerings to the end customer. Keeping in mind diversity of its clients who come from various industries such as insurance, securities firms, e-commerce, Electronic Payment Institutions, manufacturing, food service and leasing, iHub increased the bank’s interoperability through products and services such as interest and FX rate enquiry, account information enquiry, multi-channel payment, multi-channel collection, investment and financial management, SME credit guarantee fund automated application, and so on. Not neglecting the upcoming start-ups and SMEs, the bank created API modules to enable fintechs, ERPs and convenience stores to easily connect to the bank’s ecosystem.

With a first-mover advantage, the iHub platform was quick to create a rich and diverse experience adding great value to the end customer. In addition to its own capabilities, Taishin holds a positive attitude to collaborating with Fintechs/TSPs to drive innovation. TSB partnered with a leading cross-border settlement network in Asia, a start-up which was also accepted in Taiwan’s Regulatory Sandbox, to offer cross-border remittance services for migrant workers in Taiwan. As a key player in the region, Taishin Bank has facilitated interoperability and adapted its operations to encompass the evolving banking ecosystem.

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>> Read more exclusive features about retail banking innovation and the digital banking landscape. Download the latest issue of The Digital Banker Magazine HERE.

KASIKORNBANK Leading the Way for CX in a Digital Ecosystem 2

KASIKORNBANK: Leading the Way for CX in a Digital Ecosystem

Built on the foundation of ‘Bank of Sustainability’, KASIKORNBANK (referred to as KBank or the bank) delivers products and services to its clients and customers keeping in mind its core values – agility, customer centricity, collaboration and innovation.  To demonstrate their values further, KASIKORN Business-Technology Group (KBTG), an integral part of KBank, provides state-of-art IT infrastructure and services, develops advanced technology and innovation, and designs solutions addressing customer pain-points and requirements. According to Mr. Wirawat Panthawangkun, KBank Senior Executive Vice President, ‘KBank aims at being a smart Data-Driven Cognitive Bank, using data to address the needs of customers in every lifestyle nationwide, with readily available technology for further development.’

KBank’s customer experience won four awards at the Digital CX Awards 2020 by The Digital Banker. The four titles that the bank won are ‘Best Digital Customer Experience in Wealth Management, Loan Offering of the Year, Best Customer Experience – Debit Card and Outstanding Customer Experience – Loans’. In addition to the award wins, KASIKORNBANK was honoured with Highly Acclaimed: Best Digital Customer Experience – Loan Application and Highly Acclaimed: Best Digital Customer Experience in Private Banking. These award wins and acclaims are a testament to KBank’s ability to understand its customer’s requirements and provide the best possible solutions keeping in mind the current digital trends and ecosystems.

The Digital CX Awards 2020 received more than 200 nominations across various awards categories and consisted of a judging panel that included subject-matter experts known for their integrity and unbiased judgment from companies such as Forrester, EY, Fuji Xerox, Bain & Company, Wipro Digital and KPMG.

“Understanding that data is key to remain competitive today, KBank has leveraged smart data and used analytics across various lines of business to improve customer services as well as operational efficiencies.”

Driving customer experience with K PLUS and MADHUB

Guided by principles of customer centricity, KASIKORNBANK products and services resonate with excellent customer experience and agility coupled with innovation. Proof of this is how KBank was quick to respond to the Covid-19 crisis that shook the world.  As a part of its strategy to enhance customer experience, the bank had integrated all its service channels such as K PLUS (mobile banking application), KBank website, branches, LINE official Account, Call Center, and KBank Live (KBank social media). To ensure a seamless customer experience, KBank also linked K PLUS with its partner platforms to help its customer redeem Rewards Points by purchasing products from partner platforms.  An additional feature let K PLUS points be converted into point of other member cards thus demonstrating flexibility in its service.

About a year ago, KBank demonstrated how important all segments of consumers were, when it introduced MADHUB – a hub for online traders to fulfil requirements related to business opportunities and customer needs. The bank’s understanding of the region and current trends led to the development of MADHUB which offered a variety of services to online traders such as tools for inventory management, accounting systems, learning programs, debit card initiatives with offer various discounts, etc.

“KBank aims at being a smart Data-Driven Cognitive Bank, using data to address the needs of customers in every lifestyle nationwide, with readily available technology for further development.”

‘Better Together’ – Leading the way with collaborations

Understanding that data is key to remain competitive today, KBank has leveraged smart data and used analytics across various lines of business to improve customer services as well as operational efficiencies. While using its own data to improve its initiatives and products worked in the favour of the bank, KBank also saw opportunity in partnering with data rich firm to streamline its banking services and potentially carter to a wider customer base. The bank’s collaborative spirit led to it’s partnership with Lazada – one of the largest e-commerce platforms in the world.  An outcome of this partnership was MADFUND (part of MADHUB) – a financing support program designed to carter to needs e-commerce traders, was introduced on the Lazada Sellers Centre app. Sellers who opted for MADFUND could consent to share data and will then be re-directed to K PLUS to complete the loan application in real-time with instant drawdown to their bank accounts. With Lazada, the partnership was a strategic one, where credit scoring and personalised loans where readily available based on each seller’s transaction history and profile on the Lazada Sellers Centre platform.

KBank didn’t stop at one partnership as it understood that customers relied on multiple platforms and the bank was quick to adopt a multi-channel services approach. Mr. Wirawat Panthawangkun, KBank Senior Executive Vice President commented, ‘To meet multiple lifestyle needs of customers, KBank has teamed with leading business partners within ecosystems at both the global and national level.’ KBank’s other partnerships now include Grab, Facebook, LINE, Lazada, Shopee, Central JD FinTech and JD Central – Thai retail giants; and PTTOR – an energy business to name a few. These collaborations and strategic partnerships truly live up to KBank’s commitment ‘Better Together’ which aims to provide an integrated ecosystem of businesses and banks who provide a fulfilling customer experience and journey.

Mr. Wirawat Panthawangkun, Senior Executive Vice President, KBank

Stronger Together

As the pandemic bought economies to a standstill, KBank quickly rolled out a Covid-19 insurance policy.  This policy was available to all its registered K PLUS users free of charge via KBank Live LINE Official Account. The bank’s Covid-19 initiatives continued when its introduced unsecured lending through all its digital channels, ‘Reduction of monthly installment payment, a moratorium on principal payment, suspension of both principal and interest payment, as well as granting of new loans to bolster liquidity for business customers via the soft loan scheme of the Government Savings Bank and the Bank of Thailand,’ said Mr. Wirawat Panthawangkun, KBank Senior Executive Vice President.

Two separate program ‘Generous (Business) Owners – Empathetic Creditor’ – which includes reduced interest rates payable to banks by business owners and splitting the burden of paying salary due to business staffs and ‘Zero Interest-rate Loan to Retain SME Customers’ – with features such as zero interest, 10-year loan term and no fees, were launced to help the bank’s SME clients.  These programs are expected to save up to 56,000 jobs.

Honouring their campaign ‘Stronger Together’, KBank has provided financial support amounting to more than 393,906 million Baht to 80,229 business customers, and 186,850 million Baht to 297,800 retail clients to date.

Image: Quality Stock Arts/ Shutterstock.com

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>> To read more about this story and other exclusive features about the digital banking landscape, download the latest issue of The Digital Banker Magazine HERE.

Taishin Bank: Reimagining CX With State-of-the-Art Digital Offering

Taishin Bank: Reimagining CX With State-of-the-Art Digital Offering and Wealth Management Services

One of the countries which repeatedly finds itself a spot in the top 10, in the wealth index in Asia, is Taiwan. While this may come as a surprise to many, according to some statistics, 20% of Taiwan’s population had net worth over one million U.S. dollars in 2019. Leading the way in supporting and guiding these individuals is Taishin Bank, one of the leading providers of wealth management services coupled with top-notch digital capabilities. In 2019, wealth management accounted for 36% of bank’s Net Profit. Taishin bank is uniquely positioned to offer wealth management services to a wide range of customers right from young individuals, families, businesses to HNWIs.

Taishin Bank’s wealth management solutions won two awards at the Digital CX Awards 2020 by The Digital Banker. The two titles that the bank won are “Excellence in Next Generation Customer Satisfaction” and “Best Customer Service in Alternative Wealth Management”. In addition to the award wins, Taishin Bank was honoured with Highly Acclaimed: Excellence in Omnichannel Customer Experience and Highly Acclaimed: Best Private Bank for Customer Experience. These award wins and acclaims demonstrate the Bank’s ability and commitment to enhance customer experience in wealth management, while ensuring a seamless digital and real-time experience.

20% of Taiwan’s population had net worth over one million U.S. dollars in 2019. Leading the way in supporting and guiding these individuals is Taishin Bank, one of the leading providers of wealth management services

Now in its second year, the Digital CX Awards 2020 received more than 200 nominations across various awards categories. To be able to stand out in each category and win the awards the bank has truly displayed use of technology, omni-channel experience and demonstrated how customer experience was enhanced keeping in mind metrics such as use of data, efficiency of processes, etc. The judging panel that includes subject-matter experts known for their integrity and unbiased judgment from companies such as Forrester, EY, Fuji Xerox, Bain & Company, Wipro Digital and KPMG.

Enhanced CX in Wealth Management

Following a customer centric approach in banking has led banks and financial institutions to revamp products and services. The approach has become more focused on customers rather than profits and Taishin bank leads from the front. The bank’s approach to reaching out to customers starts from “Client Tagging”. Through this, the bank invites the interest of its existing customers by analysing data and clients are tagged and segregated by segment, behaviour, channel preference etc. Armed with this information, the bank introduces new products to existing wealth management customers and invites interest from others. In addition, the data analysis also enabled the bank to tag potential family-based clients for its wealth management services.

Alternative Wealth Management with Richart and Robo-King

Mr. Oliver Shang, President, Taishin Bank

Mr. Oliver Shang, President, Taishin Bank

Using data to understand clients and their spending and saving habits is key for Taishin Bank’s wealth management services. To combine data knowledge and insights with a complete digital offering enables the bank to set itself apart from its competitors in the region. The bank’s digital offering – Richart is an award-winning app which carters to all the bank’s clients. Built with the aim to become “Bank of Young People”, Richart provides wealth management services such as saving options, fund investments starting at TWD 10, artificial intelligence investing options, and loan offerings. Richart, taking a customer centric approach has also unveiled products such as annuity insurance which can be availed in under 5 mins and sub-accounts which helps customers save and achieve small goals. “To allow customers to manage their assets better, Richart provides innovative product combination designs to allow customers manage their finances in a more comprehensive way, encouraging them to diversify their assets in different products”, commented Mr. Oliver Shang, President of Taishin Bank.

Another powerful digital wealth management service that Taishin bank offers its HNWI is “Robo-King” which focuses on investment portfolio forecast, customer investment participation and is also a market monitor. The bank analyses international markets for its customer to invest in every month providing qualitative and quantitative indicators with a comprehensive risk profile. Customer can also reach out to the bank’s financial experts and aid in decision making and all this occurs in real-time. One of the bank’s latest investment product is “U.S. Stocks ETF” which was added to Robo-King in the third quarter of 2020.

Growth Amidst the Pandemic

In the pandemic, to manage customer expectation all the while ensuring a seamless customer experience – Taishin Bank introduced video-conference calls with their wealth management clients. The bank financial advising team kept clients abreast of new market trends and products. Mr. Oliver Shang, President of Taishin Bank said, “Under the digital financial trend, Taishin Bank is actively integrating financial services with new technologies, hoping to accelerate services through technology, warm up services, and further add value to the profession.”

Under the digital financial trend, Taishin Bank is actively integrating financial services with new technologies, hoping to accelerate services through technology, warm up services, and further add value to the profession.

Richart’s Maji Score is a unique scoring system which aids the Richart in disbursing loans and determining the rate of interest for the loans. For consumers to get a high score, they need to interact and transact on the digital platform. For every 10 Maji points, the rate of interest reduces by 0.1% which has made this offering popular in the pandemic. Richart loan application increased by 4% in the pandemic as customers aimed to avail loans at lower interest rates.

In addition to the above, Taishin Bank provides its customers an omni-channel experience where customers can avail support from Video Teller Machine (VTM) during non-business hours. The VTM is equipped features such as Facial recognition withdraw, consultations by teller, apply credit card, etc. Taishin Bank also introduced Loyalty Program 2.0: Taishin Points, to enable “better customer experience and grow consumer loyalty.” Launched during the pandemic, the bank encouraged its customer to increase online transaction and earn Taishin Points. Bill payments, shopping online, auto debit transactions would be collected in the form of Taishin Points and this could be redeemed against various offers such as cash credit, travel, hotel voucher, Starbucks coupons, gift cards. Wealth Management clients received VIP perks and exclusive benefits from Taishin Points.

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>> To read more about this story and other exclusive features about the digital banking landscape, download the latest issue of The Digital Banker Magazine HERE.

 

How can a bank achieve a truly customer centric approach in 2020

How can a bank achieve a truly customer centric approach in 2020?

Re-imagining customer segmentation, introducing multiple touch points and personalized services will unlock value for customers in 2020 and beyond.

 

Customer centricity is intrinsic to every service industry and retail banking is certainly no exception to this rule. Stepping in 2020, customer centricity has infinitely grown due to the pandemic. Most, if not all banks, noticed accelerated use of digital channels among its customers as Covid-19 evolved from an epidemic to a pandemic. Banks have reported active use of digital channels this year with one of the major banks in Singapore (OCBC Bank Singapore), reporting a 40% surge in online transactions conducted by customers between the ages of 50 and 64. This is a clear indication of how customers are truly willing to adapt and evolve.

Fundamentally speaking, traditional customer segmentation (age, gender, socio-economic group, region, etc) has allowed banks to target customers and cross sell products and services which generate revenues for the bank. However, this approach is slowly evaporating and is  being replaced by behavioural data usually related to customers’ spending habits. For a bank to become customer centric, approaching customers based on their spending and saving habit is more viable. Another area where we see customer segmentation, is the mode or channels via which products and services are offered to the customers. While customers have always craved for an experience which offers the best of both worlds – digital interaction and in-person branch banking, retail banks have to re-imagine banking and capitalise on a multiple touch point offering. This will allow customers to reach out to banks through channels, be it the internet, on mobile, through social media, employing the direct messaging services or availing the assistance of chatbots or calling services. The use of these channels will blur customer segmentation, thereby engaging a wider pool of customers.

For a bank to become customer centric, approaching customers based on their spending and saving habit is more viable.

A multiple touch point approach ensures interest of the customers, however, the need of the customers has rapidly evolved today. By this we mean, customers crave for more than just mundane transaction services, interest on savings or current account flexibility. Customers now want banks to help them save, offer insights into spending habits, provide wealth management advice and services, recommend insurance solutions and reward them points for engaging with the bank. This personalization, if not hyper-personalization of services is currently influencing a customer’s choice of bank. The extensive use of data analytics, deploying artificial intelligence and machine learning can provide a customer with such insights at his/her fingertip.

Scalability to offer products and services which revolve around a customer’s needs, while ensuring an omni-channel service, a multiple touch point strategy and technology driven approach, is going to lead a bank towards a customer centric business. Adoption of technology, automation of processes and digitisation of products and services will drive customer retention as well as grow customer acquisition. However, according to PwC Retail Banking Overview 2020, “61% of bankers say a customer-centric business model is “very important”. Only 17% are “very prepared for it.” These numbers augment the immediate need for banks – especially retail banks to transform themselves into customer centric organizations.

Scalability to offer products and services which revolve around a customer’s needs, while ensuring an omni-channel service, a multiple touch point strategy and technology driven approach, is going to lead a bank towards a customer centric business.