This year will see three financial areas change due to technology. Customer relationship management, the processes of banking and the regulatory environment which these financial institutions operate, writes MARK WALKER of IDC.
From a broader economic outlook perspective, we will see heightened political influence as the country gears up for another round of elections. The uncertainty in the political environment potentially translates into economic movements that may impact interest rates, the exchange rate, and other factors. The country’s politics have a proven history of impacting the macro economy and this, in turn, will impact the micro economy and may result in lower consumer spend and a decrease in business confidence.
The South African housing market is already seeing very low growth in the mid and high sections, which means consumers are already more cautious when it comes to investment. Inflation is relatively stable now but could go up, which will result in higher interest rates.
From a regulatory perspective, the banking sector is under increased pressure. There are many more international compliance requirements, as well as from the Reserve Bank and SARS, which increases administrative pressures at a time when they don’t want to spend more money on non-revenue generating activities.
Access to financial services will be key in 2017 as financial institutions attempt to further remove obstacles between the bank and the customer, not only from a compliance point of view but also in terms of services offered. Banks want to make it easier for the individual to access the bank, hence the continued focus on online and mobile banking, as well as making services available to the previously unbanked through these platforms and social media channels.
The second focus area is understanding and exploiting customer data, so big data analytics and use of artificial intelligence and algorithms are coming to the fore. The objective is to use the data about their clients to understand their credit worthiness, propensity to earn and spend, and then to pre-empt their requirements to provide the right products to that specific customer at the right time in their lives. Multichannel delivery will also be a focus area, but that is more about using all social, mobile and online channels to make it easier to reach the client. We will also see an increase in the use of integrated applications to make payment mechanisms simpler and more accessible.
The financial services environment is very harsh and banks are finding it difficult to maintain profits. They will continue to evaluate automating more processes to increase the use of self-service banking. In some countries, entire processes, such as loan generation, have already been automated from a customer, product and regulatory point of view and we foresee the South African institutions following suit.
Security is another big focus area. With the Internet of Things or IoT, more devices are being connected to the internet, creating more vulnerabilities. As more devices are connected and being used for banking purposes, security becomes a major concern. December 2016 was already a bumper month in ransomware activity and as more devices are connected this is set to increase.
We do foresee 2017 deliver a couple of innovations in FinTech, with innovative companies applying technology to create ways to do banking in a virtual environment. Financial institutions are also waking up the opportunity that this brings as it is a way for them to retain customers and profitability, while at the same time cutting costs.
Telecommunications companies could plausibly use FinTech to get into the banking sector. The biggest challenges they face are in obtaining banking licenses, existing competition and monopolies, and being able to comply with the regulations associated with having a banking license. That said, these company will make forays into the banking environment on a partnership or shared risk type model. They will partner with the smaller, already licensed financial institutions, and will then introduce FinTech using technology. Both the banks and telecommunications companies are under pressure from a growth and performance perspective and they both have access to customer data that they can utilise to offer new and innovative products and services. Already we know that the telecommunications providers are looking for ways to increase their market share and profitability, and this approach creates an opportunity for them to do so. That said, it’s very much a ‘wait and see” scenario at this stage. We will also continue to see emerging currencies such as blockchain and bitcoin, but suspect that the regulator environment must catch up before it becomes mainstream.
We will also start seeing far more use of social media platforms to help complete or compliment banking transactions. These platforms will be used both for internal communications as well as to communicate more effectively with their customers. We will also see an increase in automated CRM to solve customer queries. Here the only challenge will be the need to record all communications as part of their compliance requirements.
So, to recap, while virtual reality and augmented reality are starting to come into play, it will still be a while before they become mainstream in the financial services environment. Cognitive computing will also increase to some degree. The big bets, however, for financial services will be next generation security and IoT, with mobile also remaining a key priority in the South African market.
* Mark Walker, Associate Vice President for Sub-Saharan Africa at International Data Corporation
Naspers feeds into Latin America’s tech funding
Movile will get $400m funding from the SA-based technology investment giant for iFood expansion.
Movile is to receive US$500-million in funding for iFood in the largest tech funding in Latin America to date. Naspers and Innova Capital have committed to invest $400m of new capital into Movile to use for further investment in iFood, the leading online food delivery platform in Latin America, of which Movile is a majority shareholder.
Movile and Just Eat have already invested $100m in iFood during 2018. iFood’s extraordinary growth and the vast market opportunity in Brazil and more broadly in Latin America has driven the increased investment commitment.
iFood’s monthly orders in Brazil have fed more than 9 million customers in the past twelve months, 16 times the nearest online competitor, in terms of daily active users. This means its partner restaurants are serving the biggest population of consumers ordering food in Latin America. iFood has 50 000 restaurant partners and uses 120 000 couriers.
The increased investment commitment from Naspers, Innova and Movile is expected to accelerate growth, speed up product development and innovation, and fuel geographical expansion for iFood across the region. The company’s vision is to gain deeper knowledge of consumers through artificial intelligence technology, to personalise the food delivery experience – and at a reduced price, because of improved logistics.
“Movile is very fortunate to have long-term investors who have supported us for the past decade to help achieve our goal of transforming the lives of more than one billion people and thus we are able to continually back iFood to ensure it remains the market leader,” said Fabricio Bloisi, Movile CEO.
“Our entire ecosystem of companies is focused on allocating resources and energy towards our one billion people goal. iFood is leading the way, fueling unprecedented growth through its innovative technology platform, providing consumers, couriers and restaurants with the best experience in food ordering and delivery.”
Larry Illg, CEO of Naspers Ventures, said: “iFood has established itself as a technology leader in Latin America and its success stacks up with some of the most innovative food companies that are leading regions in North America, Europe and Asia. We have been impressed by their execution in Brazil and remain committed to backing the company on its path to transform the entire food chain to better serve consumers.”
Online food delivery is experiencing massive expansion globally. According to latest reported results, Grubhub grew daily average orders 39% year-on-year, reaching over 416 000 orders per day. In Latin America, iFood has reached 390 000 orders per day just in Brazil in the last week of October, compared with 183 000 in October 2017, representing 109% growth.
iFood CEO Carlos Moyses said: “We want our consumers to have an amazing delivery experience from the moment they order their food to the moment it arrives. Our partners – the restaurants and delivery fleet – make that happen by living our purpose of improving people’s lives using our services.
“iFood exists for our customers and, with an increased investment commitment of this size, we will be able to build out our state of the art technology platform, and increase our courier and restaurant partners to even better serve our current and future customers in Latin America.”
Hide your sheep, Spyro is reigniting
Spyro, the iconic purple dragon that entertained living rooms worldwide in the late ‘90s, is making a return with the release of Spyro Reignited Trilogy.
Spyro Reignited Trilogy introduces players to a fully remastered game collection with a re-imagined cast of characters, animations, environments, new lighting and recreated cinematics—all inHD. Now fans can explore more than 100 lush environments filled with new detail, that brings the Dragon Realms and Avalar to life . The trilogy is available for PlayStation 4, PlayStation 4 Pro and the family of Xbox One devices from Microsoft, including the Xbox One X.
South African distributors Megarom provided the followjng information:
In Spyro Reignited Trilogy, lead developer Toys For Bob is giving fans an all scaled-up version of the original three Spyro games that started it all, Spyro the Dragon, Spyro 2: Ripto’s Rage! and Spyro: Year of the Dragon, but with a modern-day feel that makes it fresh and fun for today’s player. Adding to the fun, voice actor Tom Kenny is returning to the franchise as the voice of Spyro in all three remastered games. Longtime fans will be treated to Toys For Bob’s reimagined version of the classic soundtracks, in addition to an all-new title-screen theme from original soundtrack composer Stewart Copeland.
Additionally, the new game brings an in-game audio feature that allows players to switch between the original and the newly remastered soundtracks, for those who want a more classic gameplay experience. Players can simply fly in to the “options menu” at any time during gameplay, unleash their preferred nostalgic or scaled-up groove, and glide right back into the Spyro action without losing saved data.
“It’s been a real pleasure to bring back one of most iconic video game characters of all time through the Spyro Reignited Trilogy,” said Paul Yan, Co-Studio Head at Toys For Bob. “We’ve poured everything we’ve got into making sure every detail was done right to deliver a great Spyro experience for fans. We hope players will have as much fun revisiting the Spyro world and characters as we did remastering them.”
In the road up to the official release of Spyro Reignited Trilogy, Activision Publishing, Inc., a wholly owned subsidiary of Activision Blizzard, created a first-of-its-kind, life-sized, fire-breathing and talking Spyro Dragon drone. The drone took off from “Stone Hill” castle near New York City, spreading his wings across the U.S. to explore the cities and iconic landscapes that resemble levels and themes from the original Spyro games. As part of the tour, the Spyro drone chased sheep, fired up some BBQ and delivered an early copy of Spyro Reignited Trilogy to fellow O.G. and entertainment icon, Snoop Dogg. Highlights from the Spyro drone’s delivery to Snoop Dogg can be found here.
“Fans have been asking Activision to bring Spyro back for some time now. The response to Spyro Reignited Trilogy has been great thus far, and we’re absolutely thrilled that we’re able to continue to reimagine and reinvigorate some of the most iconic videogames and characters of all time with our remastered experiences,” said Steve Young, Chief Revenue Officer at Activision. “With this year being the 20th anniversary of Spyro, there’s no better time to pay homage to everyone’s favorite purple dragon.”
The Spyro community is invited to geek out and elevate their fandom even further through the elite global partnerships from the Activision Blizzard Consumer Products Group (ABCPG). Collaborations with Funko, Traly Pins, Exquisite Gaming, KidRobot, USAopoly, Trends International, Rubber Road, and Changes have created new avenues for fans to share their love for the return of Spyro, the original roast master. Spyro consumer products across apparel, collectibles, figurines and more are now available at retailers worldwide. Fans can also take advantage of the GameStop exclusive Spyro TOTAKU Collection.