South African banks need a complete app overhaul - Sergio Barbosa — The author, Sergio Barbosa

It’s not just technology that is changing at breakneck speed. How different groups of customers engage with new technology is also shifting. While banks have spent fortunes on protecting their customers against fraud, this has slowed spending in other areas – and the cracks are beginning to show.

Currently banks release a single app for their entire customer base, ignoring the opportunity to adapt it for different market segments that each have their own unique preferences, technology inclinations and financial priorities. A good example of this is the one-size-fits-all approach when it comes to catering for the shifting preferences of different age demographics.

According to a WP Engine report, the gap between how the generations respond to technology is widening. About 64% of Gen Z (those born between 1996 and 2015) believes that AI will positively impact the world, compared to 46% of Baby Boomers (those born in the 1950s). Gen Z also expects websites to be predictive of their needs, with 41% willing to leave a site that fails to do so.

There should be a completely different app for the older generation, where transacting is simplified, options are abstracted and security is paramount. Banks should also consider a gamified kids banking app, or an interactive Gen-Z app for young adults. The problem is that banks are often tied into a solution they bought that they can’t customise. And the current stale user experiences are quickly becoming a real problem.

South African banks are missing out on customer experience (CX) opportunities with banking apps that lack the ability for customers to personalise the interface and views to suit their individual needs and preferences. This can lead to cluttered and confusing experiences, especially for older or less tech-savvy customers, increasing the risk of accidental transactions and other issues.

Hyper-personalisation

Most banks will create hyper-personalisation around a specific product offering, but overlook cross-cutting CX concerns. User interfaces should be customisable to specific audience segments across all products and all features for a better overall CX. Few big banks are getting this right. Some have created youth banking apps, but most have missed the mark completely, essentially just creating more basic versions of the parent app and not properly thinking through the experience.

A complete overhaul needs to be undertaken by the larger banks to create entirely separate apps and channels for large, cross-cutting concerns, such as age, demographics and language, among others. From there, one can start the hyper-personalisation process, and then within these broader segments developers can look to create more engaging experiences with the help of AI.

Read: TymeBank’s big growth plans: Q&A with CEO Karl Westvig

And it’s not just the user interface that needs to be addressed. Customer service departments need to be retrained to deal more emphatically with customers. This is especially important in times of high stress such as a fraud incident.

To address these challenges, South African banks will need to adopt a more outside-in, customer-centric approach to designing and delivering their services, leveraging technology and data to anticipate and meet the diverse needs of their customer base.

Personalisation is key. Banks must allow customers to personalise the app layout, views and widgets to show only the information and features they need, reducing clutter and the risk of accidental transactions. They should also let customers hide sensitive information like loan balances from the main dashboard if they prefer.

Offering a streamlined and integrated dispute process directly into the app, allowing customers to quickly flag and report fraudulent transactions, is also immediately beneficial.

Personalisation should also extend to customer support and banks must have agents with empathy. Banks should also use AI-powered chatbots or virtual assistants to provide initial support and guidance, escalating to human agents as needed to meet the digital preferences of younger generations.

TCS | Reserve Bank’s big payments shake-up – an interview with Tim Masela

Banks should consider a build-and-buy approach to plug in services or solutions. There are now API platforms with fintech marketplaces available that allow banks to benefit from the rapid integration and roll-out of new capabilities.

The key is to look at the unique needs and pain points of different generations and design the banking experience accordingly, rather than a one-size-fits-all approach. And, with Generation Alpha (those born between 2010 and 2025) about to become the next discerning digital banking customer, banks have no time to waste.