The recent webinar "The evolution of banking: key strategies and technologies shaping customer interactions in 2025" brought focus to the shift towards digital and mobile banking, with countries like Portugal and Belgium leading the way with certified digital identities for streamlined onboarding.
The shift has been made towards digital transactions, with a staggering 99% of non-cash transactions now conducted digitally. Daily banking now offers extensive support through digital channels, embracing open banking in Europe and a market-oriented strategy in South Africa.
As mobile banking is increasingly dominant, with over 80% of institutions adopting or planning to adopt mobile solutions, there is a significant trend toward mobile-first banking strategies.
Throughout the webinar, a multitude of use cases were highlighted showcasing the implementation of certified digital identities in various countries. This underscored the pivotal role these technologies play in refining and enriching banking procedures, especially in the realm of customer onboarding.
Digital identities and biometric verification are transforming banking by making customer onboarding faster, more secure, and more inclusive. This is reflected by each country's regulatory environment and technological infrastructure, with common goals of improving user experience and reducing the administrative burden on both banks and customers.
In Portugal, the government introduced a "public digital key" which serves as a certified digital identity. This system allows citizens to authenticate themselves online securely, reducing the onboarding process by replacing traditional Know Your Customer (KYC) procedures with a more streamlined digital verification.
Belgium has also implemented a similar certified digital identity system to simplify customer onboarding, making it quicker and less burdensome. In Pakistan, the adoption of biometrics, specifically fingerprints, is being used to authenticate customers during the account opening process.
Open banking is a key factor for a bank's success since it provides the ease and simplicity that consumers seek in digital applications. It is paving the way for the emergence of a revolutionary "super app" concept. This innovative approach aims to cater to customers' financial and non-financial requirements while seamlessly integrating into their everyday lives.
Partnerships play a vital role in the success of open banking. Banks are strategically investing in establishing connections with customers through collaborations with other companies. This approach not only enhances the top line but also strengthens the foundation of financial services, paving the way for the innovative concepts of banking as a platform and banking as a service.
Understanding the individual nuances and preferences of customers is essential in delivering a top-tier banking experience. Banks are shifting towards more sophisticated customer relationship management (CRM) systems. This move is intended to better understand and serve customers by providing personalized experiences and relevant product offerings.
Incorporating AI technologies like chatbots and cutting-edge CRM tools will not only boost service efficiency and responsiveness but also elevate product positioning and deepen customer insights. Banks are actively investing in these areas to bridge the gap and cultivate stronger relationships with their clientele.
However, the European Union has raised concerns regarding the impact of AI and data privacy, leading to the introduction of the EU's AI Act, which sets boundaries on banks' interactions with customers. It is therefore crucial for banks to strike a balance between innovation and regulatory compliance.
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