21 Apr Much Ado About Nigerian Fintechs
There had been a lot of hype about social media banking prior to 2015, with some analysts predicting that bank branches only had a few years before social media would completely take over. As a result, Ciuci Consulting decided to investigate this through its annual retail banking survey.
Customer Preferred Channel of Engagement
*Referenced from Ciuci 2014 & 2015 Retail Banking Report
Fintechs are often quicker and more responsive to customer needs in their operations and provide seamless integration of financial services.
Customer Preferred Channel of Engagement
*Referenced from Ciuci 2014 & 2015 Retail Banking Report
Based on the insights from both the 2014 and 2015 reports, it is clear that social media as a preferred channel of engagement increased marginally from 2% to 4%. However, preference for branches reduced from 35% to 30% indicating that the preference for non-branch channels increased overall. Another interesting takeaway is the increase in the preference for internet banking, confirming that although engagement via social media is not yet significant, customers are still gravitating towards internet based platforms. This perhaps points to why Fintechs are appealing to many users of financial services.
Now Fintechs
Fintech is a new fad in the innovation world. It refers to a line of businesses using applications, software and modern technology to provide financial services to consumers. They act as disruptors to the traditional model of banking, selling financial services and solutions directly to customers. Fintechs are often quicker and more responsive to customer needs in their operations and provide seamless integration of financial services into the lives to today’s customers.
Some of the popular global Fintechs include PayPal and Atom Bank. PayPal allows users to send and receive money, make online payments, and setup merchant accounts. Atom Bank on the other hand, is a bank exclusively for mobile, delivering all their services via an app.
Atom Bank is setup as a bank for the future. CEO, Mark Mullen, who has 28 years banking experience in business and retail banking, believes traditional banks are weighed down by their past and therefore, decelerating their response to innovation. He believes this provides a strategic advantage to Fintechs such as Atom to fully dominate the future of banking, providing solutions for tomorrow’s customers.
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