Updated: Oct 7
Technology has extended the reach of financial institutions to the general population, and it has made banking transactions more convenient. There have been numerous solutions in the past few years, and the following are just some examples as to how the latest trends in banking technology have played its part in furthering financial inclusion.
The Electronic Know Your Customer (eKYC) is the paperless version of the KYC, which is a procedure that verifies a customer’s identity. Through digital advancements, the procedure is made remote and electronic to simplify the process of identification. Because of this, customer onboarding or opening of bank accounts is now simpler and can be done faster — therefore increasing the number of people with bank accounts.
Mobile phone banking technology extends financial services to the unbanked population. It is the act of using a remote banking app for financial transactions. According to the Global Findex, there has been a significant increase in the use of mobile banking from the year 2014 to 2017. More and more people are conducting mobile transactions as this enables them to manage their finances anytime and anywhere.
Financial Literacy through AI
Artificial Intelligence (AI) chatbots can be used to financially educate and guide banking customers. Through chat, customers can type in their questions or concerns and an AI chatbot will answer. In supporting customers' queries, the AI chatbot can spread financial education and make sure that banking customers are financially literate.
Agency Banking is a type of branchless banking that delivers financial services through banking agents and their Point-of-Sale devices. This makes it possible for branches to extend their reach to rural areas in a cost-effective way. Through Agency Banking, financial institutions can bring their services to their customers’ doorstep — making sure that the unbanked population is reached.
Digitization of Microfinance Services
Microfinance institutions (MFI) provide financial services to the economically marginalized population and are important in furthering financial inclusion as they serve those who normally won’t have the means to access financial services. Recently, MFIs have been digitizing their services to foster sustainable financial inclusion. Through digitization, MFIs can now reach the last mile.
The digital banking technology mentioned above have all contributed to making banking accessible — from financially educating people to expanding the reach of financial services, all of these are important solutions to barriers to financial inclusion.
Going digital is more important than ever, and digitization of a lot of aspects in life has sped up in the past few months. Now that we’re living in a world where people are expected to socially distance from one another due to the COVID-19 Pandemic, technology will make banking transactions safer and more convenient.
Digital transformation for financial institutions is no longer an option because if they are to serve customers who are now hesitant to go out due to the pandemic, then embracing technology is the answer.
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Bank-Genie Pte. Ltd. is a Singapore-based company incorporated in 2016. For banks and financial institutions who are driving towards digital transformation, Bank-Genie is a future-focused technology partner that helps enrichen the banking experience.
Bank-Genie has a proven record across markets of Asia and Africa with its Interceptive Banking Technology. Bank-Genie Pte Ltd is funded by SBI Ven Capital Pte Ltd and FMO, the Dutch Development Bank.