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Connecting the bank of tomorrow

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Africa has the capability to approach banking in a whole new manner. In fact, today very few Africans have access to traditional banking accounts. The issue that arises is a lack of infrastructure, writes RESHAAD SHA, Chief Strategy Officer at DFA.

Mobile banking is quickly becoming Africa’s bank of the future. With its largely untapped possibility, the platform has the capacity to enable people to make instant payments, transact directly, transfer money internationally, and manage savings in real time. According to Bill Gates in his 2015 Annual Letter, by 2030, two billion people who don’t have a bank account today will be storing money and making payments with their mobile digital devices. In fact, according to the recent Ericsson Mobility Report, Africa is expected to reach 100% mobile penetration by 2021 and is, therefore, one of the largest markets for mobile subscriptions. With the growing rate of mobile penetration in Africa, mobile banking will be the ideal solution to reach the unbanked market within the fourth industrial revolution.

The shift from brick and mortar to always-mobile

The traditional brick and mortar branch model of African banks poses a challenge when attempting to reach large populations in geographically dispersed towns and villages in Africa. Reaching the un-banked through the traditional model presents logistic, infrastructure, and distribution challenges, which raises the cost of banking services that are intended for a price-sensitive market.

Africa has responded to this challenge by leveraging mobile penetration to put the bank in the user’s hand. Add to that the enhanced user benefits of increased convenience, i.e. the ability to bank and transact anytime from anywhere, reduced risk associated with holding physical cash, and an ecosystem of vendors, applications, and e-wallet-related services, and the stage is set for sustained future growth in mobile banking.

With this in mind, banks have started to implement mobile money systematically throughout sub-Saharan Africa. The GSMA (Groupe Speciale Mobile Association) has mentioned that 52% of all mobile money services are in Sub-Saharan Africa, making it the leading region worldwide. Already almost half (19 million) of Kenya’s 44 million population subscribe to M-Pesa mobile money services, and the rest of Africa seems to be on a similar trajectory.

For example, a survey conducted by World Wide Worx found that cellular banking leaped ahead by a significant 9% in a year, up to 37% in 2013. App-based banking also demonstrates the popularity of mobile banking, increasing to 37% in the same time period. Clearly, users like the idea of effectively having their banking services in their pocket, and this trend will only grow.

Potential pitfalls

Despite positive projections for the uptake of mobile banking, there are a number of barriers that may delay the development of the bank of the future. These include the digital divide, a lack of complex regulatory frameworks that will protect consumers from cybercrime, and a lack of broadband infrastructure. Pervasive high-speed connectivity needs to be the backbone of the bank of the future.

Enabling the bank of the future

Moving towards a vision for the bank of the future is more than just an ideal for someday—it is now quickly becoming a necessity. Banks are no longer facing competition from similar financial institutions with the same legacy systems to contend with. Current business models can be disrupted in an instant by other companies that may not even be in banking itself but that have leveraged digital technology to serve a traditional bank’s customers in new ways.

One example of this is Apple, Samsung, and Google, who have developed their own e-wallet technologies. Another is Bitcoin, which operates on the block chain platform, eliminating the need for banking intermediaries and enabling direct, peer-to-peer transactions that don’t incur traditional banking transaction fees. Telecommunications companies similarly have a keen eye on new ways to extend their reach and garner new revenue with mobile-payment and money-transfer offerings. Banks’ business models are already being disrupted in much the same way as technology has disrupted the those of other sectors, e.g.  Uber’s disruption of the taxi industry. If a lesson is to be learnt from all of this, it is to anticipate competition from non-traditional sources.

Banks, therefore, have a choice to make: become content with serving as transaction engines for new innovators that are able to offer more compelling services efficiently, and conveniently, or become disruptors in their own right by innovating their service offerings and leveraging the mobile platform.

While the former path may well lead a bank to assuming the role of understudy to innovative new upstarts, it is the latter which assures that the bank of the future can become a reality and continue to help its customers manage and build their personal wealth. This reality will of course not be possible without the foundation of high-speed connectivity.

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How tech is keeping us young

Research by Lenovo revealed people who use tech feel, on average, 11 years younger.

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Technology is making the world feel younger, healthier and more emotionally connected, reveals new research by Lenovo, suggesting a growing relationship between technological innovation and wellbeing.

The research, which surveyed over 15,000 individuals from around the globe, from the US, Mexico, Brazil, China, India, Japan, UK, Germany, France and Italy, not only found 40% of global respondents feel “a lot” or “somewhat” more youthful thanks to technology, but on average it made them feel younger by 11 years.

This rings most true in China, where 70% of Chinese respondents said technology made them feel more youthful, which could be perhaps due to technologies ability to build connections between generations, especially those who might have once felt disconnected from tech-savvy youngsters. For example, grandparents are now able to better communicate with their grandchildren via smart technology due to its growing ubiquity and ease of use.

The research suggests that this sentiment is felt world-over, across genders and ages. “To know how to operate newer technology makes me feel younger” one US woman, said.  Another woman, from France, also stated, “Compared to the younger generation who are born with all these technologies, my adaptability makes me feel younger”. On the other side of the globe, one female respondent in India cited tech as making her feel like she “can do anything with it which any youngster can do,” and one Chinese male respondent said: “It helps me catch up with the times – not only gaining more knowledge, but also feel that I’m on-trend; I feel younger”.

The research generally revealed that many older generations think using technology helps them to connect better with younger people as well as feel livelier and more knowledgeable. This is especially evident when it comes to the role smart devices (from PCs, tablets to smart home assistants and more) play in terms of relationships with family and friends. When asked to compare technology today to those of 20 years ago for giving them the ability to feel connected to what is going on in the lives of the people they care about, 65 percent answered it’s “getting better”. While 75% also said technology is improving their ability to stay in touch with family and friends who live far away.

The global research also revealed that tech is helping people when it comes to mental health and wellbeing, offering emotional gains, particularly in parents. Over three-quarters (78%) of working parents stated the ever-connected nature of technology helps them feel more emotionally connected to their children, even when they are away from home. An even larger portion (83%) of working parents agreed that emerging technologies are making it easier for them to feel confident that their kids are safe and secure while they are at work.

Over two-thirds (67%) of respondents in the survey stated they were optimistic about the future of technology and the role tech can play in our lives and society, especially in wellbeing, with 67% believing devices are currently having a positive impact on the ability to improve their overall health. And that’s hardly surprising, considering 84% also said tech has empowered them to make improvements in their lives overall.

Take for instance how one respondent, a 51-year-old woman from the US, highlighted how science is using technology to do great things for amputees, and enabling those suffering from mental illness to better connect with people from all over the world. “I think that the medical breakthroughs we’ve had are a tremendous statement on how we can have a positive relationship with technology,” she said.

The recognition that tech is helping to improve the quality of life could also be a result of the time it tends to save people. Half of respondents across all markets (50%) feel their smart devices save them 30 minutes or more a day by helping them do something faster or more efficiently. Similarly, over half (57%) agreed smart devices, such as computers and smart home devices like smart displays and smart clocks, are making them more productive and efficient, the highest perceptions of which were seen in China at 82% and India at 81%.

In terms of personal health, 36% of respondents said smart devices have made it easier for them to access health care providers and make doctor’s appointments, and a further 39% of those under 60 years of age stated modern tech makes it easier for seniors to contact emergency services.

A 23-year-old woman from India, for example, expressed her belief that the technological advancement of medical science is helping people better fight diseases and potentially cure them. “Lives of people are better off nowadays because they know ways of curing such health hazards,” she said. “Through technology, increasing the life span of an individual is very much possible.”

Psychologist and founder of Digital Nutrition, Jocelyn Brewer, said: “Keeping up with advancements in technology can feel like a full-time job, but it can have positive impacts on people’s sense of themselves and their age. While older people are stereotyped as being techno-phobic or inept at staying on-trend, this research points to the fact that maintaining currency in the digital space helps people feel more youthful, more connected to young people and youth culture, which in turn is a social currency for feeling valued and a sense of belonging or in ‘the know’.

“It’s this tech knowledge that drives the perception of feeling younger, without having to revisit the angst of our adolescence!

“Staying connected to the people we care about is a wonderful feature of technology. And while it is no replacement for face-to-face connection, it is a valuable supplement to communication for those who might be geographically divided. Parents can manage a range of responsibilities and provide increasing appropriate autonomy to teenagers through a variety of communication tools, reminders and systems that can help take the struggle out of the daily juggle.”

Dilip Bhatia, Vice President of User and Customer Experience, Lenovo, said: “There is a growing relationship between innovation and wellbeing as smart technologies are not only helping people globally to stay more connected but aiding wellbeing in the form of compassion and empathy by building better connections between them.”

“Technology has a transformational ability to unite people across generations and walks of life around the world, with the potential to help them to live healthier and more fulfilling lives. At Lenovo, we passionately believe in creating smarter technology for all, which is why we focus on making our technology accessible, blending into the everyday lives for the benefit of more people.”

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Advanced traffic management tech market hits $1bn

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A new report from Navigant Research analyzes the ongoing transformation occurring in the traffic management industry, providing global market forecasts, segmented by region and technology, through 2028.

Advanced traffic management systems (ATMSs) such as adaptive traffic control (ATC) are enabling greater efficiencies in the traffic management ecosystem and can help integrate the expected growth in vehicle populations without overwhelming existing infrastructure. ATMSs are also enabling the development of smart intersections, which are emerging as one of the most important data-driven backbones needed for solving core city challenges. Click to tweet: According to a new report from Navigant Research, the global market for advanced traffic management will be worth more than $1.1 billion in 2019. Annual revenue is expected to grow to nearly $3.8 billion by 2028, representing a compound annual growth rate (CAGR) of 14.2%.

“The global advanced traffic management market is expected to more than triple by 2028,” says Ryan Citron, senior research analyst with Navigant Research. “Over the next 10 years, the market is expected to achieve gradual but accelerating growth as cities prioritize reducing traffic congestion and greenhouse gas emissions, make improvements in safety and livability, and integrate ATMSs with other smart city initiatives (e.g., smart street lighting).”

Currently, cities vary in their level of maturity in using ATMSs. Collecting traffic and vehicle detection data is often the first step toward advanced traffic management. Then, in-depth traffic analytics enable traffic managers to develop mitigation strategies and make operational improvements to existing traffic signal timing systems. In cities with mature traffic management solutions, ATC technologies enable traffic signals to adjust based on real-time traffic conditions, traffic data is sent from traffic lights to connected vehicles, inter-agency data sharing is on the rise, and transport platforms are used to manage mobility ecosystems.

The report, Advanced Traffic Management for Smart Cities, analyzes the ongoing transformation occurring in the traffic management industry. The study focuses on ATC, traffic analytics, artificial intelligence, vehicle-to-infrastructure communications, and vehicle detection technologies. Global market forecasts, segmented by region and technology, extend through 2028. This report also explores regional trends in advanced traffic management strategy and highlights city case studies where innovative projects are being deployed. An Executive Summary of the report is available for free download on the Navigant Research website.

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