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
Opera launches built-in VPN on Android browser
Opera has released a new version of its mobile browser, Opera for Android 51, which features a built-in VPN (virtual private network) service.
A VPN allows users to create a secure connection to a public network, and is particularly useful if users are unsure of the security levels of the public networks that they use often.
The new VPN in Opera for Android 51 is free, unlimited and easy to use. When enabled, it gives users greater control of their online privacy and improves online security, especially when connecting to public Wi-Fi hotspots such as coffee shops, airports and hotels. The VPN will encrypt Internet traffic into and out of their mobile devices, which reduces the risk of malicious third parties collecting sensitive information.
“There are already more than 650 million people using VPN services globally. With Opera, any Android user can now enjoy a free and no-log service that enhances online privacy and improves security,” said Peter Wallman, SVP Opera Browser for Android.
When users enable the VPN included in Opera for Android 51, they create a private and encrypted connection between their mobile device and a remote VPN server, using strong 256-bit encryption algorithms. When enabled, the VPN hides the user’s physical location, making it difficult to track their activities on the internet.
The browser VPN service is also a no-log service, which means that the VPN servers do not log and retain any activity data, all to protect users privacy.
“Users are exposed to so many security risks when they connect to public Wi-Fi hotspots without a VPN,” said Wallman. “Enabling Opera VPN means that users makes it difficult for third parties to steal information, and users can avoid being tracked. Users no longer need to question if or how they can protect their personal information in these situations.”
According to a report by the Global World Index in 2018, the use of VPNs on mobile devices is rising. More than 42 percent of VPN users on mobile devices use VPN on a daily basis, and 35 percent of VPN users on computers use VPN daily.
The report also shows that South African VPN users said that their main reason for using a VPN service is to remain anonymous while they are online.
“Young people in particular are concerned about their online privacy as they increasingly live their lives online,” said Wallman. “Opera for Android 51 makes it easy to benefit from the security and anonymity of VPN , especially for those may not be aware of how to set these up.”
Setting up the Opera VPN is simple. Users just tap on the browser settings, go to VPN and enable the feature according to their preference. They can also select the region of their choice.
The built-in VPN is free, which means that users don’t need to download additional apps on their smartphones or pay additional fees as they would for other private VPN services. With no sign-in process, users don’t need to log in every time they want to use it.
Opera for Android is available for download in Google Play. The rollout of the new version of Opera for Android 51 will be done gradually per region.
Future of the car is here
Three new cars, with vastly different price-tags, reveal the arrival of the future of wheels, writes ARTHUR GOLDSTUCK
Just a few months ago, it was easy to argue that the car of the future was still a long way off, at least in South Africa. But a series of recent car launches have brought the high-tech vehicle to the fore in startling ways.
The Jaguar i-Pace electric vehicle (EV), BMW 330i and the Datsun Go have little in common, aside from representing an almost complete spectrum of car prices on the local market. Their tags start, respectively, at R1.7-million, R650 000 and R150 000.
Such a widely disparate trio of vehicles do not exactly come together to point to the future. Rather, they represent different futures for different segments of the market. But they also reveal what we can expect to become standard in most vehicles produced in the 2020s.
The i-Pace may be out of reach of most South Africans, but it ushers in two advances that will resonate throughout the EV market as it welcomes new and more affordable cars. It is the first electric vehicle in South Africa to beat the bugbear of range anxiety.
Unlike the pioneering “old” Nissan Leaf, which had a range of up to about 150km, and did not lend itself to long distance travel, the i-Pace has a 470km range, bringing it within shouting distance of fuel-powered vehicles. A trip from Johannesburg to Durban, for example, would need just one recharge along the way.
And that brings in the other major advance: the i-Pace is the first EV launched in South Africa together with a rapid public charging network on major routes. It also comes with a home charging kit, which means the end of filling up at petrol stations.
The Jaguar i-Pace dispels one further myth about EVs: that they don’t have much power under the hood. A test drive around Gauteng revealed not only a gutsy engine, but acceleration on a par with anything in its class, and enough horsepower to enhance the safety of almost any overtaking situation.
Specs for the Jaguar i-Pace include:
- All-wheel drive
- Twin motors with a combined 294kW and 696Nm
- 0-100km/h in 4.8s
- 90kWh Lithium-ion battery, delivering up to 470km range
- Eight-year/160 000km battery warranty
- Two-year/34 000km service intervals
Click here to read about BMW’s self-driving technology, and how Datsun makes smart technology affordable.