By Karen Fawcett,Group Head of Retail Clients, Standard Chartered Bank | From  News Day

Five years ago, Tendai would have had to spend an hour standing in the queue of a busy banking hall in Harare to pay his utilities bills. Fast-forward to present day, he now takes out his mobile phone and pays his bills at the touch of a button in the comfort of his home.

The growth of the digital economy is creating a watershed moment for the banking industry and changing the equation of how clients are served. Significantly, African clients are at the forefront of these changes, particularly driven by high mobile penetration.

Clients are now increasingly getting access to services of all types via mobile devices. Their expectations of how banks and other businesses serve them are increasingly set by digitally native technology players, like Alibaba and Apple.

Seamless client experiences a must to build loyalty

While clients are still predominantly using banks for the vast majority of their financial needs, from deposits to home loans to credit cards and payment services, the competitive battleground is on how clients are served. Client loyalty is now based on ease of use, security, 24/7 access and a fuss-free, seamless client experience.

Payments, for example, comprise a significant portion of a client’s interactions with their bank. While they are not a highly profitable part of the banking industry, payments are where the rubber meets the road.

Transactions conducted on computers and mobile devices generate detailed information about client behaviour and this knowledge is extremely valuable in ensuring that whatever proposals clients receive from bank, in terms of services and products, is relevant to them.

It’s about clients being offered the most relevant savings and credit card mix based on their past usage. Or if they have just received a bonus and are looking to grow their wealth, their bank prompts them with an investment product proposal which fits their risk profile. Across the globe, and indeed in Africa — we have started to utilise predictive analytics to support our sales teams’ efforts by advising them for each client before they meet, “the next best sales offer” such as when it is appropriate to offer a loan top-up or an improved deposit rate when we observe fresh funds flowing into their non-interest bearing current account. It’s all about understanding the client and giving them what they need.

The lesson for banks is clear: Valuing client interactions — especially on digital channels — and using data analysis and interpretation are key. Clients will be loyal to a bank which knows them and makes banking convenient and easy for them.

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