Integrating innovation, creativity & opportunity Dr. - - PowerPoint PPT Presentation
A Wema Bank Story on West Africas First Fully Digital Bank - ALAT Integrating innovation, creativity & opportunity Dr. Konstantinos Tsanis, Chartered FCSI Chief Innovation and Data Officer, WEMA / ALAT Future of Finance-West Africa
A Wema Bank Story on West Africa’s First Fully Digital Bank - ALAT
Chief Innovation and Data Officer, WEMA / ALAT Future of Finance-West Africa 2019, 25th Apr Lagos, Nigeria
Nigeria’s First and Oldest indigenous Bank since 1945. Perceived as a bank for Senior citizens A Western/Regional bank without the capacity to serve on a national basis Unattractive offerings/ propositions to young professionals and entrepreneurs Not easily or readily considered for banking or business relationships
Had one of the smallest branch networks in the country Had no differentiating proposition(s) and no chance to lead the pack Had some of its internal processes automated Less influential in the banking space
Profitability
CUSTOMER- ORIENTED SERVICE FOR BANKS
This led most banks (especially in Nigeria) to launch their businesses in other countries within Africa and some part of Europe.
Every institution’s desire is to scale up and ultimately make profit…but status quo doesn’t help
TO MAXIMIZE EFFICIENCY OF THE BANK
ISSUES IN BANKING
ELECTRONIC PAYMENT SYSTEM
Sources: Nigeria Bureau of Statistics, CBN, NIBSS, EFInA, EIU Viewswire, Jumia Report
30,000,000
Debit Cards in Nigeria
17,000 ATMs
Available in the Country
30,000,000
Unique Bank Accounts
180,000,000+
Population Size
148,398,425
Mobile Subscribers
60% Unbanked
Addressable Market
100,904,668
Internet Penetration
To become a leading retail bank in the medium to long term. We were tasked with the following; ▪ Grow its customer base, attract more investors and give more desirable ROI to all its stakeholders. ▪ Make the bank accessible nationwide without increasing physical branches ▪ Grow the brand to become competitive in the industry in terms of service offerings ▪ Provide offerings that will be attractive to be millennials – young and senior adults
We are Nigeria's first fully digital bank designed to meet the needs of the millennial lifestyle and promote saving. ALAT helps the customer save TIME and MONEY by taking away the need to visit a physical bank to open an account, put money in the account and get a bank card. Even more relevant to the millennial lifestyle, ALAT is an effective money manager for scheduling recurring bill payments and transfers. We are designed to be SIMPLE, RELIABLE and CONVENIENT to use.
Months before Launch
Process Design/ Reengineering & Automation Economic, Socio- Economic and industry study Research & Development Market Analysis and Intelligence gathering Personas & Customers Journey Design UXD, UI & Develo pment
Professional & Entrepreneur space
1 2
Integrate Loans, Loyalty & Rewards, AI, ChatBot, CLM
3
Driving eCommerce Superhighway with ALAT Pay
1
Young Professionals
2
Young Entrepreneurs
3
Students Partnerships, Referrals & Loyalty
350,000 Accounts + N5bn in Deposit Volume
IMPLEMENTATION STRATEGY
vin vin
ALAT for Individuals ALAT for Business ALAT for Tertiary Institutions ALAT for Clusters /Corporate
400,000+
Accounts opened
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N102bn
Transactions Executed
22,000+
Microloans disbursed ALAT is now recognized as the leader and benchmark for digital banks in Nigeria
100,000+
Savings Goals Created
15,000+
Virtual Cards issued N N N
Best Digital Bank in Nigeria 2017
World Finance
Best Mobile Banking Application 2017
World Finance
Top 40 Global – Best & Most Innovating Digital Solution (World Summit Awards)
Awards & Recognitions:
We don’t just see awards, we see reasons to do better.
Most Innovative Bank,Africa
World Finance
14 and still counting..
BEST E-Payment Website
NIRA
AWARDS 2018
Confidential, WEMA Bank
Establishing an Innovation Vision
Confidential, WEMA Bank
Strategic Innovation Choices
Open Component Product Close Radical/Disruptive Technology push Incremental Market Pull Process System
Confidential, WEMA Bank
Areas considered for Innovation within WEMA / ALAT
Large potential market for WEMA/ALAT. An untapped market for Nigeria and for Africa as a whole, and if done well it can raise our profile globally. There is a clear mandate for focus on this area and the stakeholders are already working to develop our offerings SME lending Alternative Credit Scoring Remittance market Branches/ATMs of the Future Betting Trade Finance Big Data and Analytics PFM POS Critical component for lending automation for both retail and SME lending. A newly emerging field which if done successfully can become regional or global standard and help WEMA build a very international profile Growing market, with large potential. Some existing work in progress, and a stronger focus will help achieve accelerated growth, while enabling penetration of a new market Designing the branches of the future, to be able to capture new markets and customer segments, through the combination of technology and branch innovation A growing market segment for the bank, which can also lead to strategic alignment in
models, best practices and offerings in different customer segments An area open for transformation and adoption for best practices, especially given its criticality for SMEs and the efficiencies arising through automation. Discussions already initiated Core capability for future operations of WEMA. Focus on multiple data sources, and innovative ways to help performance measurement, CRM, predictive analytics, and decision making, which is can have substantial impact on raising WEMA’s profile One of the main functionalities that increases customer engagement for all highly digitized banks. Investigation of needs, priorities and preferences, followed by benchmarking of best user experience, to help increase conversion rates A ripe area for innovation, to help the bank strengthen its presence in the SME and mSME markets across the country. If done successfully, it can also be a model of adoption for other markets/banks/countries
Confidential, WEMA Bank
Areas considered for Innovation within WEMA / ALAT
Digital currency is a type of currency available in digital form. It exhibits properties similar to physical currencies, but can allow for instantaneous transactions and borderless transfer-of-ownership. Digital Currency KYC Roboadvisors Insurance Blockchain Digital Wallet ERP Solutions Cybersecurity RegTech Refers to due diligence activities that financial institutions and other regulated companies must perform to ascertain relevant information from their clients for the purpose of doing business with them. It also refers to AML regulations and procedures. Self-guided online wealth management service that provides automated investment advice at low costs and low account minimums, employing portfolio management algorithms The use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. A digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly. A system that securely stores users' payment information and passwords for numerous payment methods and websites. A modular software system designed to integrate the main functional areas of an
The state of being protected against the criminal or unauthorized use of electronic data,
New field within the financial services industry that utilizes information technology to enhance regulatory processes. It puts a particular emphasis on regulatory monitoring, reporting and compliance and is thus benefiting the finance industry.
20
Enterprise Solution
Partnerships – Open Banking & API led Payment Warehouse
1 2 3
Enterprise – Business to Business (B2B)
Driving eCommerce Super Highway FMCG Payment Management Tool
4 5
Confidential, WEMA Bank
FinTech Collaboration is of Primary Importance for WEMA/ALAT