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Co-creating digital banking solutions is a win-win situation


Co-creating digital banking solutions is a win-win situation

Wednesday July 26 2023

Digital banking is evolving quickly driven by a surge in demand for convenient, affordable, accessible, and secure financial services. PHOTO | SHUTTERSTOCK

Digital banking is evolving quickly driven by a surge in demand for convenient, affordable, accessible, and secure financial services. Lenders have to put the customer at the heart of innovation.

This is known as co-creation, meaning a customer-centric innovation strategy where products are responsive to the unique needs of clients.

It involves working with customers and other stakeholders of the business in coming up with tested solutions to existing problems in the market.

This is not exactly a new concept and has been applied by some of the most successful companies in the world. Iconic brands have perfected the art of tapping into customer insights to create richer consumer experiences.

It also entails crafting a shared journey with the customer. The proven benefits of digital banking to the consumer are convenience, efficiency, and transparency.

Collaboration significantly lowers the risk of failure by creating a product that delivers these benefits. In addition, this enables secure banking services anytime, anywhere.

For example, Faulu Bank started receiving requests from its business customers sometime back, for a digital banking solution integrated into their financial operations.

The proposed product was also expected to deliver a faster banking experience while ensuring the integrity, confidentiality and privacy of sensitive financial information.

We worked closely with our customers in understanding their needs after, which we came up with a host-to-host (H2H) digital banking solution meeting all these parameters.

The end result was a digital interface offering customers greater control over their financial operations including cash flow management and real-time monitoring of transactions.

The H2H product is an example of a financial solution linking the bank and its corporate clients, yet scalable and flexible enough to meet evolving business needs.

Unlike traditional product development, co-creation lets the customer influence the final product outcome, thus instilling a sense of shared value. This makes them feel connected thus strengthening brand trust.

There is a huge opportunity for banks to provide seamless online platforms and channels for individuals and businesses.

The flip side is the many potential pain points leading to unsatisfactory user experiences such as slow systems and processes.

There are also concerns about the security and privacy of customer data. All these could be resolved with cutting-edge technology.

Inspired by our customers, we have successfully rolled out innovative digital banking solutions, e-Banking and Host-to-Host. The future of banking is digital.

As an innovative and socially responsible financial institution, Faulu Bank continually seeks to empower its clients to harness opportunities, invest in their future and contribute to economic growth.

This is part of the broader vision for the bank to create a more inclusive and accessible financial ecosystem for the future.

Mr Ouma is the acting chief executive officer of Faulu Microfinance Bank. [email protected]