EXPERIAN’S 2021 BUSINESS AND CONSUMER REPORT in EMEA brought out the leading trends in the financial sphere
During the last two years the pandemic has made it more difficult to understand the true picture of the financial health of consumers and sole proprietors and on the other hand has accelerated the digital transformation and introduced new ways for consumers to use financial services. The fast mass spreading of the use of internet and online shopping and interacting has paved way to a new, disruptive trend in the banking services, which are embarking into the full-mobile journey.
These are conclusions of the latest EXPERIAN’S 2021 BUSINESS AND CONSUMER REPORT in EMEA. It reveals that 62% of businesses believe they need more data to fuel their analytics needs, while 65% are exploring different types of data sets to improve accuracy of their analytics (e.g. use of non-traditional data sources such as open banking), and 67% of businesses are prioritising investment in the digitalisation of core business processes. 62% of businesses have seen an increase or a significant increase in credit applications from new customers over the past 12 months.
Organisations that still suffer from delays due to manual workarounds or customer checks that slow the process down will be affected and lose business.
The commissioned study conducted by Forrester Consulting on behalf of Experian, August 2021, included over 598 senior decision-makers in financial services and telecommunications firms in EMEA region.
The disruptive mobile banking is already seizing chunks of market share from traditional banks according to key managers of fintech and mobile banks speaking during the Experian Innovation Week that took place at the end of 2021 and reconfirms the key findings of the report During the event Experian has invited and gathered for the first time on a joint discussion platform the most innovative organizations in the Balkans and in CEE: Postbank, buddybank powered by Unicredit, Credefi, Kontomatik.
For example, The UniCredit Group has launched buddybank, currently available for Italian customers only, a mobile-only bank accessible solely via smartphone, available on iOS, Android and newly on Huawei platforms. According to Massimo Bondanza, Head of marketing & products at buddybank, mobile banking “allows the use of small formats, due to the use of smartphones for interaction, instead of desktops. We also had to eliminate all round-trip outside the smartphone. It all starts and ends within the mobile phone”. Buddybank is using Experian solutions, and this allowed fast deployment, without branches, completely paperless, and the customer care is running through chat.
For the business environment, SMEs especially, the mobile banking is useful since it allows clearance for loans within 48 hours. The use of algorithms has taken the mobile banking to an unprecedented level, making Ivo Grigorov - CEO, Credefi Ltd to estimate to 300 billion the number of alternative online transactions (outside traditional banking) worldwide last year, with a forecast of doubling until 2026. “The whole process from the application all the way to the disbursement of funds is done on the platform and is digitalized.”, he said.
Consumers generally trust banks with their data, but their needs and expectations are changed after the pandemic and this have accelerated the digital transformation process. According to Tsveta Nikolova, Head of Credit Risk Methodology and Capital Adequacy Control Department, Postbank” the challenge comes not only as a result of the crisis but also as a result of the expanding banking products and systems during the banking process. “That is why we are willing to expand the data sources, improve data quality and take as much possible advantage of the data by using more innovations”, she said.
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