The Evolution of Digital Banking
Banking is one of the oldest trades in history dating back to the fourteenth century in the terrains of Renaissance Italy. From depositing produce, precious stones, and other valuables, the core of banking has revolved around deposit mobilization and lending. With passage of time, change has pushed Banks to stretch their operational model to performing other financial services beyond the historic traditional banking. Alignment with dynamic customer demands, cost optimization, regulatory shifts, and the need to build sustainable business models are some of the chief drivers to the major changes in the banking industry.
Back in the mid-sixties, the industry witnessed one of the key milestones to what is referred to as Self-Service banking when Barclays Bank commissioned the first Cash Machine (ATM) in the United Kingdom. The big idea: to allow customers perform some financial transactions (cash withdrawals as the main use case then) without going into a Bank Branch. The shortfall: It still required a customer to travel to a physical service access point. The gaps in convenience to the customer and cost implications to the Banks were apparent.
The mid-nineties marked another milestone to the banking industry: Online Banking – making banking services available online (on the web) then Digital Banking which presents Banking services through other options beyond just the web. The definition of convenience was enhanced. Customers were now able to do more on their personal gadgets from anywhere and any time of the day. With changing lifestyles, dynamic business models and shifts in the regulatory framework, Digital Banking has proven to be a sustainable approach that balances business drive and customer demands. It connects customers to opportunities beyond their geographical limitations through eCommerce capabilities and challenges the definition of banking to more than just deposits and lending. Payments and various Value-Adding-Services have proven to be integral to modern banking. Digital Banking is just the right invention that aligns with these trends. Besides that, intensifying competition means that Banks must continuously adapt their business models – the choice between embracing and innovating or close.
With over 50 years of existence in Malawi, Standard Bank understands these dynamics. Despite the numerous strides we have made in offering superior digital solutions over the years, we are certain to safeguard against complacency. The voice of our customers matters and forms the core of what we build. The Bank understands that customer needs vary and strives to impact them differently in line with their needs. As we continue to drive Malawi’s growth, the Bank commits to continue investing in the most relevant state of the art digital technology with the customer at the center of our strategic decisions.