New ways of servicing customers
- Agency Banking: The banking industry went through a significant change and transformation in 2020. COVID-19 has forced banks to look at alternative ways to service their customers resulting in the closure of bank branches globally. Banks have and continue to adopt Digital Agency Banking, providing them with a platform to digitally service their customers.
- Digital onboarding the new norm: Small business merchants and consumers have taken a considerable leap, downloading financial services applications, performing self-registration, and navigating these applications without the need to fill in forms, stand at counters for hours, or wait for their account applications to be approved. Digital onboarding and self-registration have become the new norm.
- Microsoft Teams and Video changed our lives: Business recognized the benefit of moving their customer and staff interaction to video. Microsoft Teams, Zoom, and multiple unified communications technologies played their part in changing the over the counter or ‘in person’ approach to online, face-to-face video and 24 by 7.
A Step Jump in Technology and Innovation
- Contactless Payments and the drive to make QR codes ubiquitous: Contactless payments are nothing new; however, 2020 brought a massive shift for merchants accepting predominantly cash to now accepting contactless payments. QR code scanning for COVID-19 tracing has educated populations on QR codes’ benefits. Many countries and central banks currently regulate and adopt QR codes for e-Money and Scheme card payments.
- Know your customer with AI and digital decision-making tools: Areas of AML compliance are going through step jump changes with the introduction of facial recognition, AI, and e-KYC technologies. The introduction of these technologies gives regulators and the banking community precise information on new and existing customers enabling quick and automated verification and ranking of these customers.
- The noticeable link between eCommerce and in-store payments: A noticeable trend during 2020 was the number of stores that have adopted digital strategies, including contactless payments and online shopping. According to Forbes, a recent Omni Channel Grocery Report conducted by PYMNTS found; “more than one-third of online grocery shoppers are willing to switch to a store that offers digital payment options. Consumers value the convenience of digital payments enough to switch brands or retailers.
The digital landscape is changing.
- Exponential Growth in South East Asia for eMoney Wallets: E-money transactions are growing, and E-money wallets are becoming more popular than debit and credit cards in South East Asia. ~60% of Indonesia’s 250m population now have an e-money wallet. No fees and loyalty rewards for transacting are a huge attraction. SME merchants and consumers enjoy the flexibility and convenience provided to them through e-Money without the need to have a bank account.
- Exponential growth in Digital Merchants: With the growth in e-Money wallets and the COVID-19 pandemic, there has been exponential growth in the download and registration of digital retail merchants. This growth is driven by consumers’ desire to go cashless and the competition between merchants to offer rewards and loyalty offerings to attract these consumers’ into their stores. Consumers are redeeming vouchers and points in store for items purchased online. According to PYMNTS the growth in Indonesia of digital merchants due to the COVID pandemic has been over 1000%, with healthcare and grocery stores leading the charge.