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Tips for banks to reach all ages in Africa

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DEWALD NOLTE, VP Business at Entersekt, offers some tips on how African banks can attract and retain customers, despite their age to ensure they are preparing for future generational expectations.  

As mobile internet connectivity grows, African youth are fast embracing the opportunity to connect, converse and transact on the web.

According to the GSMA (Mobile Economy Report 2015), mobile internet penetration in Sub-Saharan Africa was expected to reach 38% by 2020. This has largely been driven by lower costs of smartphones, which the GSMA says have decreased by 20% since 2008. A rapidly growing local app market and easy access to games and social media have captivated the youth market.

Although the Millennials generation is a Western construct, African youth (18 to 34) – particularly the urban youth – are displaying similar online behaviour patterns to their counterparts in developed countries. And, while the older generations may accuse them of being driven by a need for instant gratification, the youth’s expectation of simple, fast and always-on service is shifting how organisations design their offerings.

Banks, meanwhile, have built their credibility by portraying themselves as the bastions of the economy, institutions designed to protect your money, with caution built into their organisational DNA. While this is important, of course, it isn’t something that necessarily attracts their fastest growing potential customer base.

Here are five pointers to help African banks attract and retain customers, no matter what their age, and to ensure they are preparing for future generational expectations.

1. Prepare to be compared

At the very outset, it’s important for banking institutions to understand that the younger generations are swiftly getting used to having information at their fingertips.

Research published by Pew Research Centre (2015 Global Attitudes Survey) shows that African youth are jumping at the opportunity to engage online. In Tanzania, those aged between 18 and 34 are 17% more connected to the internet than their elders. This climbs to a significant 31% in both Nigeria and Kenya. The research also shows that the connected youth are active on social media on a daily basis.

Social media is being used to ask questions and to make comparisons based on experience. Price comparison websites are also making it easier to make informed decisions.

This significantly changes the dynamic of how the youth choose products and interact with brands. It is obvious then, that banks will need to change the way they engage with the younger generation.  Designing for a frictionless experience must be priority.

2. Just make it work

User experience becomes a key issue when servicing customers across generations.

Based on their engagement with global sites, the connected youth have an expectation that everything must work immediately, offer real value, in a seamless experience.

While the younger generations have a better understanding of technology, continued literacy challenges and multiple regional dialect demographics adds complexity to the user interface served up by financial institutions. Complex security terms such as phishing and pharming can cause mistrust of the service. In many instances, this lack of understanding may lead to customers avoiding digital channels altogether, which in turn drives up the cost of delivery for the banks.

Making use of technology that appears exceptionally simple to the user takes away the fear factor. When it comes to authentication, banks must guarantee their customers’ protection against phishing and other digital fraud vectors without the costly and clumsy use of one-time passwords. These may give the appearance of good security, but they are less effective and overly complicated, particularly for those accessing services on their phones. Removing complexities at the very outset of the transaction resonates with both the older and younger generations.

3. No one reads anymore 

No generational cohort reads lengthy warnings or instructions. People will click through to the end of an instalment or process without actually being fully aware of the details – or this may again increase their mistrust of the service. Moreover, in our experience, when an organisation uses text-heavy instructions, abandonment rates shoot up. When communicating instructions, the “keep it simple” rule reigns supreme.

4. Markets are not the same

Companies also need to understand that new markets work very differently. What may have worked in Botswana, may not be obvious to those in Kenya. People use and engage with technology, language and each other differently in every market. This includes generational quirks.

Banks will need to tweak their user engagement depending on where they are operating. Working with partners who have experience in a region allows a bank to learn from their experiences, which can save time and costly mistakes.

5. Innovating for future generations

We see a lot written about banks becoming simple transaction pipes. To avoid this, they must adapt in order to provide better value for their customers.  This can be achieved in three ways:

  1. A simple user authentication, which has excellent security, is a great way to build trust with customers.
  1. Once this is in place, you can confidently open up your channels and add new services.
  1. Banks can then begin leveraging their merchant network in order to start on-selling their products to their customers – essentially becoming an aggregated merchant platform. By nurturing trust, banks are able to capitalise on a captive customer base and bring to bear vast economies of scale.

The complexities of catering across borders and language barriers and for different generations with different user expectations are enormous. However, if banks invest in technologies that are simple, seamless and flexible, they can not only ensure all age groups form trusting, lasting relationships with them, but also take an important step towards building new revenue opportunities for the future.

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New iPhone pricing for SA

The iStore has announced that the latest iPhones, the Xs and Xs Max, can now be pre-ordered at www.myistore.co.za , and will be available in stores starting 28 September 2018.

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iPhone Xs and iPhone Xs Max feature 5.8-inch and 6.5-inch Super Retina displays that offer remarkable brightness and true blacks while showing 60 percent greater dynamic range in HDR photos. iPhone Xs and iPhone Xs Max have an improved dual camera system that offers breakthrough photo and video features, A12 Bionic chip with next-generation Neural Engine, faster Face ID, wider stereo sound, longer battery life, splash and water resistance,

Pre-orders will be open for cash purchases and on iStore’s revised payment plan in partnership with FNB Credit Card, allowing customers to pay off their iPhone at a reduced interest rate. However, the contract period is 37 months rather than the usual 24 months.
*FNB Credit Card Payment Plan, price per month over 37 months, a 40% trade-in value after 24 months

How to pre-order – Pre-ordering online for either cash or the FNB payment plan gives customers the benefit of reserving their purchase without having to queue and the added convenience of having purchases delivered directly to their door. Pre-orders of iPhone Xs and Xs Max are completed online by visiting www.myistore.co.za.
FREE iCare Plus – Exclusive to iStore, all customers can get its 2-year extended warranty, which includes one Apple Certified screen repair, that normally sells for R1 999, for FREE. To qualify, customers should secure a voucher online now at www.myistore.co.za , and subsequently redeem it when they upgrade their contract or purchase any new iPhone at iStore (iPhone 8 and newer) between now and 31 December 2018. Offer is limited, secure your voucher now.

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Accenture opens Fjord design centre in Johannesburg

Accenture has launched its first design and innovation studio on African soil, Fjord Johannesburg.

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The company says the move significantly expands its design capabilities and demonstrates its commitment to unlocking Africa’s innovation potential through the creation of experiences that redefine industries in our constantly evolving digital era.

The new studio, opening in November, will be located at Accenture’s new 3875m² offices in Waterfall. It will be led by Marcel Rossouw, design director and studio lead for Fjord Johannesburg.

Said Rossouw, “Brands are constantly asking, ’how does one take a business need or problem, build that out into a definition of a service experience, and then bring it to market?’ It’s about re-engineering existing service experiences, identifying customer needs, prototyping rapidly, iterating often and proving or disproving assumptions. But it’s also about getting feedback from customers. The combination of these factors helps companies advance towards the ultimate service experience.”

Fjord is the design and innovation consultancy of Accenture Interactive. The Johannesburg location marks its 28th design studio globally, solidifying its position as the world’s leading design powerhouse.

Working in the same location as Accenture Interactive will allow Fjord to fuse its core design strategy DNA with the digital agency’s expertise in marketing, content and commerce to create and deliver the best customer experiences for the world’s leading brands. Accenture Interactive Africa‘s blend of intelligent design and creative use of technology has already been used by some of South Africa’s largest and most prominent brands, including Alexander Forbes, Discovery, MultiChoice and Nedbank. The digital agency has also earned industry accolades for its innovative and compelling business results, most notably two gold awards in the Service Design category at the 2017 and 2018 Loeries awards.

“Great design tells great stories,” says Wayne Hull, managing director of Accenture Digital and Accenture Interactive lead in Africa. “It unifies a brand, drives innovation and makes the brand or service distinctive and hyper-relevant in both the digital and physical worlds. This is critical to achieving results. Having Fjord Johannesburg as part of Accenture Interactive, and collaborating with all of Accenture Africa, will provide unique experiences and forward-thinking capabilities for our clients.”

“Businesses in South Africa are becoming more design-aware and are looking to take greater advantage of design skills to compete with the rest of the world,” said Thomas Müller, head of Europe, Africa and Latin America at Fjord. “We’re excited to open our first design studio on the continent and to be part of an emerging market that is ripe for design and innovation, and open for business. Developing markets like South Africa are challenging assumptions and norms about what digital services and products are meant to be, and we’ll strive to put design at the heart of the innovation being produced there.”

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