Banking towards a digital future

Welcome to the digital era where developing economies like India can leapfrog; using mobiles as technology springboards like their Singapore counterparts with their CashCard TopUp; simply a combination of a dual slot mobile phone, smart ATM card, and a HomeNETS PIN. The mobile has also been an instrument for women empowerment, like in Bangladesh, with the Grameen Bank & Grameen Phone project, providing credit to the poorest of the poor. Similarly, Pride Africa, a financial institution, provides access to credit to more than 80,000 entrepreneurs with its virtual information and services network and smart cards for SME’s.  Or take the case of ACCION International, one of world’s leading microfinance organizations which uses Palm Pilots to cut costs and time to make a microloan.

E-finance has also made inroads in the securities market especially retail where online trading has captured large market share. This rapid spread suggests e-brokerage is easy to introduce and market to users and cost reductions are quickly passed on to consumers. In Denmark, Netherlands, Norway, e-cards have replaced existing financial services. Venezuela, Ghana and Turkey have a similar story to tell with Mondex e-cash, a multifunctional purse that allows upto 5 currencies to be held at a time and can be used across open networks like telephony or internet.

 

Digitalised insuance? Asia’s fully online insurance product from DollarDEX helps DollarDex.com’s participating banks know more about what other banks are offering and also reduce cost of customer acquisition. Consumers now are at the epicenter of a digital finance revolution and can quickly discern which dust-gathering options add much value as social media or mobile applications. Many are disillusioned by their banks’ lack of real time support on their websites. In fact tech initiatives like Google Wallet have already begun to change the finance game. According to Brett King, digitalization implies banks have to rebuild marketing teams, define new metrics and deliver true 1:1 propositions. Or like co-operative banks in Poland discovered to their horror, be left out in the cold.