The future of retail banking


The core of financial services has evolved from mere solutions that do not get to serve the needs of the consumers to innovating around the complex dynamics of modern day consumers with varied needs of financial solutions. The so-called millennials are fast, impatient and always on-the-go and therefore banks must anticipate and innovate in order to meet up with the complex behaviors of these 21st century consumers. One would note that banking services in this generation must provide a simple ecosystem that encompasses an innovative new-generation banking group and partner companies to provide client-oriented financial services.

Modern day banks must be personalized, real-time and 24/7 financial services that utilize the open banking architecture to provide unmatched level of services and guarantee high reliability, speed, and security to the consumers. The ability to guess the consumer’s needs is key to the survival of any financial technology firm in this generation.

Innovations around traditional banking processes leaves banks with no option than to reduce the work force. Deutsche bank has taken the bold step to reduce her workforce by 18,000.

What this implies is that large number of highly qualified skilled labour force shall be pushed out of the labour equation in the coming years. Robots and Artificial Intelligence shall combine to perform routine tasks that currently are being done by humans. The ability to guess and anticipate the needs of the highly dynamic individuals of these days will determine the nature of financial solutions to be provided by institutions of finance.


According to the EFIna report :The informally served Nigerians make up 9.8% (9.4m) of the Nigerian adult population of 96.4m: • 8 3 . 2 % (7.8m) are based in rural areas • 55% (6m) are female • 54% (5.1m) are under 35 years • 66% (6.2m) earn less than N18,000 monthly • 52.5% (4.9m) own a mobile phone. On the average, the informally served save 42.9 billion monthly. If formal financial institutions target 50% of what is being saved by the informally served, N21.45 billion could be injected into the formal financial sector. This is a huge opportunity which is currently financially excluded from the formal financial institution.

By innovating around the services offered in the retail banking sector such as savings and checking accounts, mortgages, personal loans, debit/credit cards and certificates of deposit (CDs), banks can be at the forefront of financially including these informally served.

One has seen arrays of products being released by Fintech companies in the recent times. Take for instance quick loans solution from Carbon(formally Paylater) the company prides itself as being able to provide instant loans without collateral in Nigeria. According Crunchbase, the company has raised $15.8M in a four series funding. Carbon, a mobile-only digital bank, provides innovative financial services to the financially underserved mass retail segment.