January 25, 2022 All Things Fintech in Africa

All You Need To Know About Digital Banking in Nigeria

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Here’s All You Need To Know About Digital Banking in Nigeria

It’s no more novel that the banking industry is experiencing a period of unprecedented change right now. Banks are now working hard to improve their customer experience and also to adapt to emerging technologies and tendencies from digitizing their services, product and processes, and utilizing their data in a much more purposeful manner. However, making sure that their viability in a marketplace that is quickly changing and in which the rivalry out of fintechs and technology giants is growing remains a major challenge.

There is only one thing banks can do in order to become future-proof: creating a full switch to electronic banking. The digital disruption in banking requires new approaches and fundamental changes in the way to function.

Banks can not become agile and electronic overnight, yet it’s a path they have to take to endure. Why? Because it is about customer experience and gratification now. Better stated: banks ought to be customer-centric.

Customers are spoiled by companies with innovation, constant customer-based additional value services, and products which keep improving the consumer experience and satisfaction. These very same clients expect banks to measure up to this level of support, which poses a challenge.

Mobile banking apps are definitely the most preferred digital banking platform for bank customers in Nigeria followed by USSD codes, a fresh survey on electronic banking expertise of Nigerians has revealed.

Becoming an electronic bank does not just ensure viability, as you can maintain and attract customers by providing outstanding customer experience, digital banking in Nigeria has more advantages:

  • Price reduction
  • Improved revenue
  • Agility
  • Viability
  • Exploring the benefits of newest technologies

Digital banking offers lots of benefits for banks and customers; it’s exceptionally important to accommodate to it. Digital banking is the face of innovative technology, therefore it’s essential to embrace it in all your banking areas.

The most effective banks of their future will have the ability to supply fresh value-added self-managing solutions that unite real-time data insights with security and flexibility — and also make full use of the digital banking chances to help customers get their greatest futures.

What is digital banking in Nigeria?

Digital banking is most often being confused with internet banking, and although there’s definitely an overlap between the two, electronic banking goes way beyond an online or cellular platform.

Therefore, the real meaning of digital banking is frequently misunderstood. Simply speaking, the description of electronic banking is the full digitization of banks along with its activities, programs and functions — front-end and back-end — and linking both worlds via middleware.

But the question ‘what’s electronic banking?’ Can’t be answered in one brief sentence. It is a much more complex concept that needs a comprehensive explanation to prevent misconception.

According to electronic banking goes far beyond a fancy website or program. It’s all about the automation of each and every measure of their banking relationship — from starting a new product to client support and anything else in between. It contains a full transformation to a digital atmosphere.

Digital banking depends on big data, analytics and adopting new technology to enhance the consumer’s experience. It needs structural and fundamental (organizational) vary together with the client as the starting point. Digital banking is all about offering the client the service of their choice via the access of their choice. To accomplish this, a lender has to be created and designed upon a digital core infrastructure that is available internally and via a stratum of accessibility layers. No heritage. No spaghetti.

Compared to conventional and online banking, electronic banking has several advantages:

Price savings & increased earnings

Digital banking eliminates costly back-office processing operations and also the need to invest in expensive hardware and software for legacy technologies. Additionally, it needs less staff as a lot of daily surgeries will no longer exist. Generally speaking, price savings between 20% and 40% may be gained. But, LeasePlan Bank, as an instance, decreased operational costs by 60 percent.

Digital banking doesn’t only lead to cost reduction; it also generates increased revenue. It enhances a 360-degree perspective of your clients through intelligent systems and effective utilization of data. Seamless customer familiarity leads to a higher market share. 

  1. Agility

Banks who are agile can quickly respond and adapt to market changes, new technologies or new legislation. Agility enables quick and simple process adjustment and quick product starts, so banks may differentiate themselves out of their competitors.

  1. Remaining compliant with the new law and legislation

With the introduction of new legislation such as GDPR and PSD2, it will turn into a real struggle for banks to stay compliant. Legacy systems make embracing these laws difficult because customer’s information could be held on plenty of different systems. For this reason spaghetti structure, even the easiest changes can take months and months. 

  1. Exploring the benefits and chances of new technologies and trends

New technologies and trends in electronic banking, for example, open APIs, blockchain, banking as a stage or cognitive banking, will possess a significant effect on banking business models. However, exactly like with new laws, legacy systems restrict the capability of banks to accommodate these improvements. You need to change digitally to completely research the benefits and possibilities of the technologies and embrace the technology that helps you to future-proof your financial plan. 

  1. Becoming viable

To speak about future-proofing your lender, viability is finally the most important thing. It’s your aim to ensure the viability of your lender and make the business more profitable. Digital banking permits banks to offer services in the same quality level as fintech and tech giants. That is exactly what you will need to draw and retain customers and build closer connections together. Digital banking is a necessity to compete on costs, usability and customer satisfaction.

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