Driving digital transformation across the financial transaction space
Digital transformat to educate customers
WRIT TEN BY
CATHERINE S TURM AN PRODUCED BY
JUS TIN BR AND
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Nedbank has sought to educate customers in the application of new digital solutions, revolutionising the payment and transactional industry across South Africa
P
resent in six countries in the Southern African Development Community (SADC)
and East Africa, Nedbank’s vast portfolio has seen the business acquire subsidiaries and banks in Namibia, Swaziland, Malawi, Mozambique, Leso04
tho and Zimbabwe, as well as representative offices in Angola and Kenya. Throughout its ongoing expansion, technology has continued to challenge traditional banking services, leading Nedbank to break down barriers, overhaul its processes and take a closer look at the way customers engage with its services. A chartered accountant by back-
in an organisation that houses a strong
ground, having audited a large number
passion for clients and embraces new
of automotive groups –such as BMW
ways of thinking. Appointed as Manag-
and Daimler – Dayalan Govender,
ing Executive in 2017, he has taken this
Managing Executive of Nedbank Card,
objective further by seeking to reform
Payments and Transactional, entered
the card and payments space and the
the fast-evolving world of financial ser-
transactional industry in South Africa,
vices with the aim to make a difference
leveraging technologies and capabili-
and transactional solutions to clients that fast, safe, reliable, convenient and cost effective all focused on enabling clients to achieve their goals and outcomes?’ That’s the first departure point that’s really important to us,” he explains. “We have two key challenges. One is around transforming the culture from ties in a fundamentally different way. “The first thing in our approach is,
an incremental mindset to an exponential disruptive mindset. The second is
‘Delivering delightful client experiences
around digital adoption and education:
and how do we transform not just our
once we get clients to start adopting
Nedbank Card, Payments and Trans-
these solutions, how do we ensure
actional business but also the indus-
sustainability in digital adoption? What
try? How do we reshape the industry
is accelerating digital adoption, not just
so that we are able to provide payment
in South Africa but globally, is that all w w w.ne dba n k. co. z a
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“ Behavioural biometrics is also something that we are exploring and believe it’s going to enhance customer experience” — Dayalan Govender, Managing Executive of Nedbank Card, Payments and Transactional
tication methods to bolster security across various digital applications to build trust and transparency. Investing in new fraud prevention mechanisms, Nedbank has gained increased awareof us live in an increasingly digitised
ness into fraudulent activity – some-
world and we are being influenced by
thing which has become a significant
digital solutions in our everyday lives.
threat across South Africa and globally.
The proliferation of applications that
“We are investing in tokenisation,
exist satisfy many of our needs that
enabling secure in store and online
we didn’t think possible. People are
transactions. Behavioural biometrics
being influenced by digital in many
is also something that we are exploring
aspects of their lives and we are at
and believe it’s going to give clients
a point where clients expect this from
a superior customer experience,”
financial services.”
says Govender.
Trust is going to be a key requirement
Accelerating digital adoption will go
underpinning digital adoption. Within
hand in hand with building trust, which
its Card, Payments and Transactional
will no doubt feed into Nedbank’s abil-
operations, Nedbank has therefore
ity to scale. However, despite such ef-
sought to invest in the latest authen-
forts, customers will only utilise smart w w w.ne dba n k. co. z a
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payment solutions if they are somewhat intuitive, in order to remove the fear of the unknown and fully engage with new digital services. “Far too often, there’s a perception that digital is complex. Not everyone understands these digital solutions and they get paralysed when they experience a digital solution for the first time, so we have invested significantly in how we design these solutions with the client at the very heart of this,” he says, Since the bank launched the Nedbank 08
Money app in 2018, the new digital platform has been met with acclaim by clients. Gaining significant traction with more than a million downloads, the app provides customers with financial access and services at the click of a button, fully empowering users and putting them in control of their finances. Harnessing a sophisticated design with ‘next level authentication’, the app enables customers to do a myriad of activities including viewing balances and statements, buy prepaid data and other value-added services, send money to a recipient or make payments to friends, family or providers. “Nedbank also launched scan to pay
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Tipping the scale on mobile payments By Mark Elliott, Division President, Mastercard Southern Africa The app economy has changed the way we live. We depend on our smartphone apps for everything from entertainment to photography, to messaging, personal productivity and ordering transport or accommodation. In South Africa, we’re increasingly using our smartphones for in-app, in-store and online payments.
“The promise of mobile payment services lies in creating safer, richer experiences for consumers and merchants.” We’re also seeing merchants use apps that turn their smartphones into point of sale devices or use QR codes to accept mobile payments from their customers. The mobile device brings the convenience, safety and customer choice associated with cashless transactions to spaza shops, flea market stalls, trades people like plumbers and electricians, and other sectors where traditional card terminals are not a practical or affordable solution.
Mobile innovations need to improve the consumer experience As we think about the rapid adoption of mobile payments, the promise of mobile payment services lies in creating safer, richer experiences for consumers and merchants. The key is not to simply recreate what you could do before, but to make paying for things simpler, safer and faster. That’s why connecting with consumers wherever they are and whenever they want is critical. Imagine, for example, a world where people don’t need to queue for hours to send money to their families in the rural areas or where no one needs to withdraw cash from an ATM and then stand in a long queue at a retailer on a Saturday to pay a rates bill. They don’t even need to log in to online banking and input a lot of payment information. Instead, they’ll be able to scan a QR code on the statement and pay from an app. This is a world where merchants don’t need to keep large amounts of cash on their premises. It’s one where consumers demand convenience and control, and
FIND OUT MORE: VISIT WWW.MASTERCARD.CO.ZA
expect payment experiences to make their lives better. We are not talking about a distant future, either. In South Africa, more than 900,000 ratepayers in the City of Ekurhuleni can pay their municipal bills online with their smartphones, using Masterpass, our global digital payment service. Masterpass is also accepted online by a growing list of merchants of all sizes as well as in-app for convenient air and data mobile top-up.
Partnerships key to drive mass digital payment adoption The consumer experience is simple, but there is a lot of complexity in the background. Without collaboration across industries to ensure that digital payments systems are secure and interoperable, it will be impossible to deliver the experiences consumers demand or to scale mobile payments. That’s why we are collaborating with key players to develop and deliver new consumer propositions that span multiple industries across multiple channels – in-store, in-app and online. One example is the partnership between Mastercard and Entersekt to enable Nedbank’s customers to make QR payments to Masterpass, Pay@, SnapScan, and Zapper merchants and billers through the Nedbank Money app, whether they are paying online or at a physical point of presence. This market-first development means that Nedbank Money users need just one smartphone app for all major domestic scan-to-pay services, rather than needing to store card data in multiple apps, and they will be able to use biometrics as an authentication method.
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within the Nedbank Money App which
“Being able to give clients control over
is the first banking app in the South Af-
their debit orders, where they could
rica that allows clients to scan a Mas-
go through their accounts, recognise
terpass, Snapscan or Zapper QR code
a debit order to be fraudulent or inac-
for making retail and utility payments.
curate and be able to reverse that
This is convenience at your fingertips
– this has been an extremely powerful
that no longer requires clients to carry
service. Also, simple things like freez-
cards or cash.
ing and unfreezing cards are being
“A number of other services in the app are extremely popular, which debit order reversals are a prime example.
used by customers all over the world, especially when travelling.” However, with such a diverse
In South Africa, we have an issue from
demographic, it has been imperative
a customer perspective around debit
for Nedbank to ensure financial
order abuse,” explains Govender.
inclusion throughout the development w w w.ne dba n k. co. z a
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“ Nedbank also launched Scan To Pay within the Nedbank Money App which is the first banking app in the South Africa that allows clients to scan a Masterpass, Snapscan or Zapper QR code for making retail and utility payments. This is convenience at your fingertips that no longer requires clients to carry cards or cash” — Dayalan Govender, Managing Executive of Nedbank Card, Payments and Transactional
of its banking applications. Based on USSD (unstructured supplementary service data) technology, Nedbank’s transactional product MobiMoney has also seen customers gain access to financial services via smartphone and feature phone, where they can deposit money into the account for free as well as send money to recipients for free. Other value-added services include purchasing prepaid electricity and more. “There have been examples of people wanting to buy prepaid electricity, they had to take transportation to get to a mall or vendor and it would cost them R60-80 to buy R100 worth of prepaid electricity. Now, it is at their fingertips and will cost next to nothing,” Govender adds. “We are solving problems that really matter to clients and address some of these key pain points. Through this particular platform we will build a lot more services that resonate with clients. It is also a free banking account that does not attract a monthly service fee.” Remaining aggressive in developing new digital tools and solutions for those in all walks of life, Nedbank is w w w.ne dba n k. co. z a
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Banking and Payment services in Africa are experiencing a digital transformation, putting the customer experience at the core of innovations. New technologies such as ID verification and behavioral risk management will enrich banks customer engagement strategy. Behavioral Risk Management: Gemalto Assurance Hub employs AI to assess user behavior patterns and determine the potential for fraud. Anything out of the ordinary can be identified and additional authentication will be requested, to ensure maximum security. ID verification: Gemalto’s ID verification solution enables financial institutions to deploy a fast and compliant identity verification. Customers can self-enroll to online banking services by simply submitting a scan of their ID along with a selfie to facilitate secure, real-time enrolment. TO LEARN MORE VISIT GEMALTO.COM
IN AN INCREASINGLY CONNECTED SOCIETY GEMALTO IS THE LEADER IN MAKING DIGITAL INTERACTIONS SECURE AND EASY. LEARN MORE AT GEMALTO.COM
Š Gemalto 2018. All rights reserved. Gemalto, the Gemalto logo, are trademarks and service marks of Gemalto and are registered in certain countries. November 2018 - CC
Banking and Payment (r)evolution
CLICK TO WATCH : ‘OPPORTUNITIES BEYOND THE OBVIOUS’ 15 also set to launch a solution that is
“From travel to household require-
tailored to the student customer that
ments, the app will find you a service
will be truly disruptive and be the first of
provider that meets your needs and is
its kind in South Africa, as well as offer
testament to the focus on client experi-
entrepreneurs with the tools and skills
ence and enabling client outcomes,”
that they need to succeed.
notes Govender.
Fully supporting customers beyond
However, with the rise of hyperper-
traditional banking services, Nedbank’s
sonalised services, data will become
partnership with Hey Jude has even
a key differentiator in delivering relevant
seen the bank integrate a new lifestyle
services to clients including merchants.
solution into the Nedbank Money app
Nedbank’s end-to-end business man-
for ease and simplicity. The solution
agement solution, POSplus, provides
works to enable customers to book
advanced data analytics and enhances
travel services, obtain support for find-
a business’ presence not only in ecom-
ing various services, and much more.
merce, but to gain a significant growth w w w.ne dba n k. co. z a
in the physical environment. “This innovation and solution allows business and business owners; especially small business services and entrepreneurs to focus more on growing and running their business, as opposed to managing multiple vendors and other distractions within their environment.” Successfully reaching R125bn (US$8.8bn) market capitalisation throughout its operations is no easy feat, but building strong partnerships has remained key to Nedbank’s 16
upward trajectory in supporting 8mn clients across Africa and beyond. Recently, the bank’s alliance with pan-African banking conglomerate Ecobank Transnational Inc has seen Nedbank cater to the growing for cross border remittance solutions in Africa. Additionally, by effectively embracing collaboration to bring solutions to life, Nedbank’s partnership with FEXCO has seen the business harness its global, dynamic currency conversion solution for customers visiting South Africa, and pay for services in their home currency. “We’ve leveraged FEXCO’s expertise and capability, which gives our merchants the ability
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Building Borderless Business Fexco are proud to partner with Nedbank to provide Dynamic Currency Conversion (DCC) and Multi-Currency Pricing (MCP).
Read more online
For more information, contact: Gavin O’ Sullivan | Fexco Country Manager - South Africa | Tel: +27 66 478 9450 | Email: gavosullivan@fexco.com
CLICK TO WATCH : ‘“SEE MONEY DIFFERENTLY” WITH NEDBANK | 90” TVC’
to offer tourists coming to South Africa
which will provide jurisdiction over all
a value-add by paying in their home
financial institutions. This, he explains,
currency, where they don’t have to ex-
will enable the ongoing transformation
perience the volatility in the currency or
of financial services and the delivery of
the exchange rate,” explains Govender.
further advantages in terms of inter-
Long term, looking at the future of
acting, servicing as well as delivering
Nedbank and its position in South Africa, Govender believes a flood of new
innovative value propositions. “Enabling regulations are going to be
opportunities are set to be unlocked
key in achieving the reserve bank’s vi-
as the country undergoes significant
sion for 2025 which is tackling some of
regulatory change. The Financial Sec-
the social issues that we have in South
tor Conduct Authority and Prudential
Africa,” he says.
Authority are set to be located in the
“The move could also unlock trade,
South African Reserve Bank (SARB),
growth and create employment. The inw w w.ne dba n k. co. z a
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5705 Wetpaint
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formal sector in South Africa facilitates
mindset, Nedbank has transformed
huge amounts of economic activity but
its capabilities to deliver solutions
it’s fundamentally based on cash. How
that are convenient, secure and scal-
do we, through regulation, also go and
able. With Govender certain that the
solve facilitating trade and entrepre-
finance industry in South Africa will
neurship? That’s where we’re going to
become wholly digitally led, data will
see a significant amount of transforma-
support decision making and provide
tion take place over the coming years
key insights into the way customers
in South Africa.”
engage beyond banking services, as
Housing an exponential and disruptive
well as provide essential insights which w w w.ne dba n k. co. z a
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“ We are solving problems that really matter to clients and helping address some of these key pain points� — Dayalan Govender, Managing Executive of Nedbank Card, Payments and Transactional
will fundamentally change the way in which financial institutions design and bring solutions to market. Fully revolutionising its corporate culture to think more innovatively and client centered, as well as adapt a commercially savvy mindset, Nedbank will continue to place significant investment in its people and new exponential technologies to take banking services in South Africa into a whole new era.
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135 Rivonia Road Sandown, 2196 South Africa, NEDSZAJJ T +27 (0) 11 294 4444 www.nedbank.co.za