Viewpoints

Amidst the noise for mobile apps, generative AI, and online account opening, there's a vital but often overlooked player in the digital transformation journey – the Automated Teller Machine.

Let’s face it, in the payments industry, digital transformation is all we know. It’s everything we’ve been doing in some form or another for the last however many decades.

Nigeria's Islamic banking sector presents a substantial opportunity for growth, enabling financial institutions to expand their portfolios and contribute to financial inclusion. Overcoming challenges such as low awareness and a shortage of experts is crucial for banks looking to position themselves strategically in this evolving sector. The local climate is poised for growth, the question is, are banks ready to take advantage of it?

Buy Now Pay Later (BNPL) is taking the world by storm, with banks and financial institutions looking to ride the wave of success in the space that fintech’s have pioneered. But where do they start? In this podcast, Paul Chandler discusses how banks can break through the crowded market and take action now, and the models they can follow to get there.

With its exponential growth and potential impact, buy now, pay later (BNPL) is not just a passing trend but a transformative force in the world of payments.

Given the challenges related to infrastructure, interoperability, and financial literacy, the ongoing efforts to foster trust in digital financial services within South Africa's informal market have yet to see a reduction in cash transactions. However, it is within the informal economy that financial inclusion initiatives make the biggest impact. So, how can banks and Fintechs effectively incentivise individuals to transition away from cash and actively engage in the digital economy?

In this blog, we explore three key reasons why BNPL would be a valuable addition to any FI’s or PSP’s payments portfolio and the advantages they will see from incorporating it into their business strategy.

Buy now pay later (BNPL) is not a new concept, yet BNPL - as we know it today - has exploded globally over the last few years. In Southeast Asia, the alternative payment method is gaining ground, driven largely by the region’s high internet penetration as well as its substantial younger mobile-first generation. Here, the market is dominated by merchant-focussed offerings from specialised fintechs and established players. However, as a market expected to be worth US$92 million in Southeast Asia by 2025, it is not surprising that banks across the region are considering adding BNPL solutions to their arsenal - the question is, how?

With 97% of consumers in the region preferring to use digital channels to interact with their banks, and 60% of consumers open to switching to a digital bank, it is clear that digital banking can no longer be viewed by FIs as optional, but rather as an essential tool in reaching their current customers and tapping into new market segments.

As the appetite for all things digital increases to include everything cashless, banks in the GCC need to expedite their digital transformation strategies and take advantage of their already established customer bases, consumer trust and loyalty.