Alat and the Emergent of Digital-Only Banking Customers

Yinka opened a parcel that was delivered to his office by the delivery man from UPS on Friday afternoon. He was singing the popular Korede Bello’s single, I don get alert. God win.  I don get alert. God winI don get alert. God win...

We wondered whether Yinka has just won a jackpot from one of the sports betting or lotto. In ecstasy, he announced that Wema Bank has just delivered his Alat debit card which he requested three days ago when he opted to open an account with Digital Bank’s account through his smart phone.

As he opened the envelope to expose the Alat bankcard, Seye quipped, “let see how you will activate this card without visiting the ATM deployed by Wema Bank. Yinka promptly followed the instructions printed at the base of the letter on how to activate his card. The  letter was signed by Dele Adeyinka, head of Alat Digital Bank. In eight steps, Yinka activated his Alat card.

Inadvertently, he, just like thousands of other who have signed on Alat platform, has successfully become a digital-only banking customer.

Who are digital-only banking customers? PwC’s 2017 Digital Banking Consumer Survey described them as “omni-digital.” This segment uses only digital channels such as mobile phones, PCs and tablets to conduct their banking, avoiding traditional physical channels and call centres altogether.

So, how should banks adjust their priorities and product designs to respond to this transformational shift in the way consumers do their banking?

According to this report, “At the very minimum, this should be a wake-up call for many financial institutions. They may think that they’ve got more time to adapt than they really have.”

To keep pace with consumers’ expectations, PwC suggests that banks and credit unions will need to do a much better job of:

  1. Selling to buyers at the time, place and channel they prefer
  2. Using digital strategies to make products easier to use (think ‘one-click’)
  3. Offering personalized products and services that are both timely and relevant
  4. Moving to a real-time delivery of information that can help consumers manage their finances

While the strategies and priorities of each financial institution may be different based on their digital maturity, all organizations must speed up their digital transformation efforts to keep up with the rapidly changing expectations of the digital consumer.