How can a time-tested traditional bank survive the new wave of Neobanks?
The story is as old as time: as new ideas and technologies dawn, the old order scatters to thrive. As discussed in Part I of this blog, the once unwavering dominance of traditional banking institutions now finds itself at crossroads as the advent of Neobanks challenges established norms
This continues in South Asian countries like India, Bangladesh, and Nepal, where the rapid growth of Neobanks presents traditional banks with an ultimatum: evolve or face obsolescence. The market volume of Neobanking in Nepal, India, and Bangladesh is expected to grow by $3 billion, $156 billion, and $87 billion by 2027, respectively.
The momentum gained by Neobanks in these areas poses a pressing question to the traditional banks: how swiftly can they adapt to the changing tide?
Leveraging the digital to compete with the digital-only
Imagine a bank that is a seamless blend of cutting-edge digital innovation and decades of industry experience.
Traditional banks in India, Nepal, and Bangladesh have this advantage over Neobanks. It’s the same globally, but let us delve deep into these regions to understand how traditional banks can leverage the digital to get ahead of the digital.
Banks in these regions currently possess the unique strength to offer their customers an unparalleled banking experience by leveraging technology while capitalising on their extensive expertise and experience in the domain.
So the question is, how can financial institutions in these regions bolster their digital evolution to enhance their offerings and vie with the emerging Neobanks?
At any bank’s core, the vision always is to deliver a seamless digital experience. But traditional banks won’t be able to do that with their monolithic banking system. When you modernise your banking, you enable customers to access their accounts, perform transactions, and manage their finances from the comfort of their smartphones or computers anytime, anywhere. You also ensure a seamless digital experience by offering a user-friendly interface and intuitive mobile app. User experiences go beyond just aesthetics – it’s about crafting an environment where banking becomes a hassle-free and enjoyable activity which is why it’s essential for banks to partner with digital banking solutions providers who understand innovation, creativity, and craftsmanship, someone like Clayfin.
Modernising also means unlocking digital wallets and self-service empowerment.
You have to understand customers are not just clients; they are empowered participants in their financial journey!
In Bangladesh, Clayfin enabled BRAC Bank’s mobile application, which also works as a digital wallet, to become Bangladesh’s number-one banking app. How did Clayfin make that happen?
We offered robust self-service features that allowed customers to make decisions and manage their finances independently. Whether opening new accounts, applying for loans, or setting up automatic payments, customers have the tools and information they need at their fingertips.
Furthermore, Clayfin has achieved notable successes in India, such as its collaboration with Bandhan Bank which focused on refining and streamlining the customer onboarding process for corporate and SME clients. The introduction of advanced functionalities greatly facilitated the efforts of both front-end and back-end teams, enabling the seamless integration of new customers and the timely updates of existing ones within the system.
This strategy empowers customers, granting them greater control and fostering a heightened connection to their financial health. By partnering with solution providers with a proven track record of executing such projects, your digital transformation journey can be elevated to a superior echelon!
Visionary banks believe in harnessing the power of digital transformation to enhance their traditional strengths, and that is what traditional banks in Nepal do by partnering with Nepal Electronic Payment System (NEPS). It is an authorised Payment System Operator collaborating with a consortium of prominent national and developmental banks in Nepal that embraces technological advancements to offer innovative financial products. Since its inception, it has allowed transactions to be faster than light, whether it’s paying bills, transferring money, or sending money to friends; the speed and efficiency have set a new industry standard.
Clayfin also partners with NEPS to take cutting-edge digital banking solutions to our customers in Nepal.
What is stopping you from leveraging the digital?
Time to break free with digital, not breaking up the piggy bank!
Clayfin has established strategic partnerships with various institutions, aiming to facilitate the seamless digital transformation of banks across the dynamic landscapes of India, Bangladesh, and Nepal. We empower you to unlock complete potential and adeptly compete alongside the burgeoning neobanks. In an era where the financial industry is rapidly evolving, we firmly advocate that banks in these regions should seize the opportunity to engage with our seasoned experts without delay proactively but never without letting the essence of craftsmanship go!
Our collaborative efforts with prominent institutions underscore our dedication to fostering innovation, enhancing customer experiences, and retaining the ever-glowing childlike curiosity. By harnessing our expertise, you can also shift paradigms of the financial sector and emerge as formidable contenders against the tide of emerging neobanks.
