Conquering the peaks of digital banking in Nepal

Benefits of digital banking solutions

The global pandemic has accelerated the adoption of digital banking in Nepal, prompting a widespread understanding of the necessity and significance of utilising digital platforms for financial transactions. This transition is not merely a short-term response to the challenges posed by the pandemic but represents a fundamental shift in how individuals perceive and engage with banking services in the digital age. Let us look at how it benefits both customers and banks.

Development of digital banking and pain points

Nepal’s burgeoning landscape of digital banking is undeniably on the rise, presenting a promising trajectory. Yet, amidst this progress, challenges persist that and if left unaddressed, could hurt the country’s overall development.

Nepal, with its emphasis on fostering home-grown products stands as an example for the global community. However, this unique approach has led to a dearth of robust competition within the market. Let’s try and break down how this lack of healthy competition is stifling innovation.

Despite the bank’s initiatives to foster a digital lifestyle, Nepal’s digital banking trends signal towards monopolistic practices. So much so that the banks’ collaborations have led to a substantial 60% of merchants in the nation adopting QR-code payment systems. While this seems like a step in the right direction, the reality on the ground paints a more nuanced picture.

• The existing technological capabilities provided by banks are limited to the offerings of a singular service provider, owing to the monopolistic state of affairs. Due to the lack of healthy competitors that are capable of introducing unique and innovative solutions, banks find themselves constrained to legacy-rooted offerings. What the digital banking landscape in the country truly needs is an advanced service provider that can usher banks into the next generation of tech adoption.
• Countrywide, banks offer diverse solutions, yet they all are from the same digital banking service provider. As a consequence, the user interface (UI) of all these banking applications bears a striking resemblance. This lack of diversity or rather, uniqueness leaves little room for individuality or brand differentiation among the various banking platforms, making brand recall an impossible chore!
• In the era of AI/ML and data analytics, a noticeable shift has occurred in how insights are generated and how banks harness data. Currently, banks face a limitation—they struggle to provide hyper-personalised solutions to customers, hindering their ability to upsell or resell. This challenge arises from the digital banking service provider’s incapacity to transform raw numbers into actionable and meaningful data.

The choice Nepal must make is more clear now than ever before!

Nepali banks are at a crucial juncture in their digital banking journey, facing several pain points that hinder their progress. To overcome these challenges and foster a thriving digital banking ecosystem in Nepal, several key interventions are needed.

Transitioning into next-gen era of digital revolution with Clayfin

For more than two decades, we have been at the forefront of revolutionising digital banking solutions, empowering banks to adapt to evolving demands and elevate the customers’ standard of living. Our stack of digital banking solutions has everything to help Nepal overcome their challenges, from mobile application UIs that grab attention to seamless and fast transactions!

What we offer:

Effortless digital banking transformation:
Elevate your institution to digital banking excellence through Clayfin’s smooth omnichannel system. Improve customer experiences with a user-friendly interface, incorporating advanced technology for comprehensive self-service digital banking across retail and corporate sectors.

Enhanced engagement through PFM system:
Boost customer engagement with our Spinach Personal Finance Management (PFM) system. Utilise customer insights to enhance product and marketing strategies with the power of data analytics. Employ highly personalised campaigns to unlock tailored upselling opportunities.

Clayfin empowers banks to navigate the challenges of the digital age on their own terms. Our solutions are advanced and allow banks to uphold their values while providing the services customers demand in the modern era. Want to be at the forefront of Nepal’s digital transformation? Get in touch with us today.