BFC Bulletins Monthly News Digest
Ekaterina Tolmacheva, the author of Go Mobile’s annual report on mobile banking, recently highlighted 6 major mobile banking trends expected in Russia in 2021.
- Biometrics – an increasing base of consumers that have provided biometric data means that financial institutions can, with more confidence, increase cash withdrawal limits and lower interest rates on loans for these consumers.
- Smart(er) apps – financial institutions not only collect a ridiculous amount of data on consumers, they are also using it to provide them with insightful analyses of their spending habits as well as help them to plan a workable budget. As technology continues to develop, the utility of apps will no doubt also keep growing.
- Increasing role of the Central Bank – the Central Bank is continuing to influence the development of digital assets in Russia. Although some see this as a hindrance to development, the Central Bank does have the power to mandate the use of certain technologies as well as how they are applied.
- Growth in the number and usage of superapps – superapps (e.g. those launched by Sberbank and Tinkoff) facilitate connections between financial institutions and non-banking services, ultimately making life easier for consumers. With success being seen in the first such apps launched, it seems likely that the era of superapps may be upon us.
- Financial institutions and new media – while the importance of new media apps like TikTok and Likee may not be immediately evident to financial institutions, early adapters are finding success. Expect financial institutions to join new media apps en masse in 2021.
- Changing the role of the branch location – with most banking processes having switched to remote in 2020, the importance of branch locations is fading. But some financial institutions are going “phygital” to provide consumers with experiences that are more akin to a visit to a coffee shop than a visit to a financial institution.
