What is a Digital Bank?
Digital Banking to Youtap means embedding the technology in everyday life, in your back pocket or your handbag, replacing your traditional wallet with a digital wallet, eliminating the friction associated with dealing with a bank and delivering a feature rich experience to the customer that integrates their social, financial and everyday life.
Digital Banking extends the core banking platforms to the customers living room or place of business and enables the customer to interact with these platforms without the friction off visiting a branch or dealing with a contact centre.
When a challenger bank sets out to build a new bank, does it start with a traditional Core Banking System, or does it start with a Digital Wallet?
It means providing the customer with instant decision-making tools such as Artificial Intelligence or feature rich API’s connected to purpose built Digital and Agency platforms providing applications such as:
- Digital Banking,
- Digital Wallet,
- Digital Payments,
- SME Business Applications and
- Loyalty and Data and Analytics
The barriers and issues facing the adoption of Digital Banking include:
- Core banking systems, that require the bank to perform major upgrades ahead of going Digital
- The perception that implementing Internet/Mobile Banking is a stepping stone to being a fully Digital bank
- A poor understanding of a bank’s customer base and a disconnect between what customers require and what a bank is prepared to offer
- Lack of willingness to innovate
- Declining customer bases with customers moving away from the instruments that have traditionally locked them into a bank such as lengthy loan or mortgage agreements to floating rates or shorter terms
- Customer choice for financial-service providers
- New generations of 100% digital customers that are socially and financially aware and demand innovations such as social connection, automated savings, spending analysis, access to in-app low interest finance, a companion card for online and in-store shopping and above all zero fees.
Digital Wallet applications have almost 1 billion active users which accounts for 12% of the world’s population. This number is expected to increase to over 1.3 billion active users by 2023.
“The inevitable rise and rise of the digital wallet.”
– Payments Industry Intelligence, November 09, 2020
The Digital Core
Youtap has spent the past decade transforming banks and mobile operators transitioning them from physical money to e-Money providing the core systems required to cater for the new generation of banking customers.
During this time, our customers across multiple emerging markets have quadrupled their customer bases by starting with a full digital core and digital wallet. By integrating this core we have created a range of third party delivered financial services including e-Money and Mobile Money Wallets, Micro Financial Services and Supply Chain Services.
In the developed markets, the focus has been on migrating the banks’ customer base from traditional banking to mobile banking. Youtap’s focus has been to jump this step, rather than deploying mobile banking integrated to the core banking solution, our focus has been on providing a bank’s customers with a fully integrated digital core.
This core provides the customer with a Digital Wallet surrounding by Digital finance applications and services, enabling the customer a safe and secure transition from traditional banking to the new world of Digital banking.
Youtap has transformed multiple banks in Asia from cash to e-Money providing them with a variety of feature rich business and consumer applications. The process for a Youtap customer begins with the White-labelled Consumer and Small Business App.
UX designers and Customer experience engineers work to ensure that the Go to Market and release of these Apps are aligned with the goals and market for our new customer.
A business or consumer customer will download these applications from the Apple or Android App store and will go through a frictionless and automated know your customer process “e-KYC”.
This process collects standard information from the customer including their national identity, passport or driver’s license information, a photo, a fingerprint or a scan of the customer’s face.
This information is then validated against the banks AML database. Once the customer is validated, they are then provided with a Digital Wallet. This wallet forms the foundation for a variety of business or consumer related applications. In the case of a retail business, the Digital Wallet provides the business with a secure environment to manage their supply chain, inventory, sales, banking and micro finance requirements.
In the case of a consumer the Digital Wallet provides the consumer with a secure banking environment, automatically linked to their companion scheme card to perform all their financial services requirements including everyday payments, savings, micro-finance, online and in-store shopping, wage and salary management.
Integration to critical bank systems, Security, compliance and AML, ERP and CRM and a range of third-party platforms from settlement, through to scheme card and bill payment providers and platforms are also available.
- MSME Digital Banking platform and apps for traditional and progressive banks targeting this lucrative untapped segment
- Agency Banking platform and apps for banks seeking branchless banking services to new and existing customers
- Open Banking platform for provision of Open API’s for banks to serve 3rd party integrators
- Disbursements platform to provide banks, mobile operators, and their NGO and enterprise partners with stored value card and mobile services for efficient disbursements and managed use of funds
- Payments Aggregation platform to process alternative payments, e-money, and traditional Visa, Mastercard, Union Pay debit and credit card
- Retail Enablement platform and apps for in-store acceptance of mobile money and other e-money platforms
- Acceptance Devices and Apps that meet needs of Tier 1 to Tier 5 merchants
- Transport platform, devices, and apps for acceptance of mobile money and other e-money platforms on formal and informal transport
- MSME Point-of-sale platform, devices, apps, and IoT AI for acquirers and service providers wishing to bring the mass-market MSME’s from offline to online
- Host-to-host Point-of-sale platform for acquirers and service providers wishing integrate e-money and other alternative payments to Tier 1 and 2 POS networks
- Loyalty platform for acquirers, retailers, and service providers wishing to incentivize and reward merchants and consumers for digitally transacting at the point-of-sale
- Supply Chain platform for integration of supplier catalogues, ordering, and collections in Youtap MSME Point-of-sale services
- Data Analytics for retail and FMCG groups, service providers and acquirers wishing to understand the in-store sales performance and patterns of the mass-market MSME’s