The banking industry grappled with unheard-of disruption in 2020: from responding to COVID-19 to the stampede for ESG investment, there was a voracious appetite for new answers to financial risk. But the journey – particularly for some – has been especially tough. As is, in some cases, the pressure bearing down from regulators and government: get the service offer right first time or risk punishing fines and media humiliation. Equally, the opportunities and reward for a relevant product that captures the consumer’s confidence are still there. Innovate or die is a tired axiom but behind the fatigue of the words lie huge prizes.

 

Fintech scrutiny is rising
Where does the present adversity leave us as we look back upon what has been, for some, an anxious year? Millions are on furlough and the survival of many businesses hangs in the balance. Despite out-of-this-world technology, the pitfalls of the banking market still expose the inexperienced to bleak realities. New entrants want growth and customer trust. They also need to put capital to good use. This double pressure is new ground for some banking fintechs. Out-of-this-world tech may not be enough for all. Then there is the issue of the economy, wherever your banking clients are in the world. A report from McKinsey & Company recently documented the changing face of opportunity and how switched on organisations are in managing it. “Citizens everywhere are demanding more of companies and reminding them, with due respect to Milton Friedman, that the business of business is now more than just business.”

 

Importance of Gen Z
In terms of banking, this will put more consumers in control of their financial journey and financial wellbeing. But which banking businesses, specifically, stand to gain? For example, both digital and non-digital banking players are desperate to build long-term relationships with Generation Z. How many of these banks know how to talk to Gen Z, let alone employ and keep them?

Gen Z grew up in an era of soaring asset prices where families struggled to keep up. A savings culture is deeply instilled for many Gen Z’ers. A lack of work and all-round options due to the pandemic is hitting this generation hard. But it’s also a generation that’s digitally native, adept at creating value out of little. Barring the essentials, an internet connection is all many need to flourish. Stock options and fancy add-ons are not so interesting, but old-style stability is.

In the background lies the remainder of a dark winter and a global health crisis still gathering pace. Many banks and financial players have come through multiple lockdowns and massive financial uncertainty with better earnings than expected. But the true economic fall-out of COVID-19 is still incalculable. One thing is certain: there are more global jolts to come.

The World Finance Digital Banking Awards 2020 arrive at an alarming time, for just about everyone. But bringing what is ‘good’ – things such as sustainability – to the fore will help. In fact, PricewaterhouseCoopers (PwC) predicts it may be the opportunity of the century, declaring that more than 50 percent of European fund assets will be ESG-denominated by 2025.

Environmental, social and governance funds (ESG) have moved well away from their narrow ‘do-good’ straitjacket. But financial players who underestimate the meaning of ‘good’ or ‘bad’ investment do so at their peril because these values now travel well beyond, for example, decarbonisation or arms sales.

‘Good’ might address racism, both covert and overt. The massive take-up of Black Lives Matter proves this. Or transgender and LGBT issues. Even what you eat – meat or vegan burgers, for example. And be aware, this list is lengthening. Just how these issues are measured is fraught with risk and complexity. Ratings systems are in their infancy (and set to spawn their own sub-industry). But the central tenet is fairness.

 

Old order upended
In other words, the deployment of capital, digital or otherwise, is being shaped by agendas that stretch well beyond the narrow confines of price-to-earnings values, cash flow and liquidity-solvency metrics. Even traditional asset allocation models. While those values still matter, credibility, empathy and transparency are now also part of the mix – and a growing one. The new social-financial contract is also being driven by regulation. PwC says the emergence of a new sustainable finance policy in Europe will see “a significant impact not only on products but on financial agents – MiFID firms, insurance brokers – and fiduciary investors – insurance companies, pension funds – at the same time.”

So a massive wall of ESG money is on the march – and digital banking players will want to attract as much of it as they can. The opportunities are staggering, as is the potential for out performance. While the new landscape enlarges and consolidates, unsustainable industries may rapidly wither as non-compliant sectors of the economy are rammed by legislation, fines and taxation. Institutional investors, you can be sure, will not want to risk being caught in the wrong place at the wrong time.

 

Digitally redefined
The digital banking concerns of 2019 were increasingly focused on biometric and AI-based issues, not to mention big data – trends that World Finance has trenchantly covered for some time. But all of these issues have now been supercharged by COVID-19.

For financial digital players, this has meant an opportunity to use AI to evaluate a business’ ability to withstand a pandemic – or even supply relief to other businesses. Some of this new thinking has been powered by social distancing. But much of the creativity has simply been down to the need for capital redistribution and compliance in an easy-to-access digital format. In Africa this has been going on for years in the form of micro and mobile payments; M-Pesa is a good example.

Where things have become more advanced is in the possibility of fintech in healthcare or in lending for larger sums, like mortgages. “Examples of these innovative partnerships already exist, like the ones Walmart has with PayPal and Green Dot [world’s largest pre-paid debit card company],” said a recent Deloitte report, Beyond COVID-19, New Opportunities for Fintech Companies. “There are myriad opportunities,” the report added, “for fintech to collaborate with partners in other areas – for example with the big technology firms – especially on a global scale.”

 

Stability 2.0
But no amount of financial innovation thrives without a stable domestic environment. If economic governance is robust then business, even in the grip of a worldwide pandemic, has more opportunity to succeed and grow.

Smartphone technology, meanwhile, is helping many people take charge of their lives, widening opportunity with access to capital at reasonable cost, throwing off tiresome legacy limits that once held so many back. Wherever we live, innovation and competition is repurposing almost every banking service there is. The World Finance Digital Banking Awards 2020 celebrates this progress in all its diversity, those at the epicentre of this digital banking turmoil. Their response to unprecedented challenges is impressive and innovative and deserves to be celebrated.

 

World Finance Digital Banking Awards 2020

Best Mobile Banking Apps

Andorra
MoraBanc App – MoraBanc

Armenia
Ameria Mobile Banking – Ameriabank

Botswana
SC Mobile – Standard Chartered

Brazil
CAIXA Tem app – CAIXA Tem

Brunei
Baiduri b.Digital Personal – Baiduri Bank

Bulgaria
m-Postbank – Postbank

Chile
BBVA Chile – BBVA Chile

China
Ping An Pocket Bank app – Ping An Bank

Costa Rica
Banca Movil BAC Credomatic – BAC Credomatic

Dominican Republic
Banreservas – Banreservas

El Salvador
Banca Movil BAC Credomatic – BAC Credomatic

Germany
DKB-Banking – Deutsche Kreditbank

Ghana
SC Mobile – Standard Chartered

Greece
NBG Mobile Banking – National Bank of Greece

Guatemala
Banca Movil BAC Credomatic – BAC Credomatic

Honduras
Banca Movil BAC Credomatic – BAC Credomatic

Hong Kong
DBS digibank app – DBS Bank

Indonesia
OCTO Mobile – PT Bank CIMB Niaga

Ivory Coast
SC Mobile – Standard Chartered

Kenya
PesaPap – Family Bank

Mexico
BBVA Mexico – BBVA Mexico

Myanmar
KBZPay – KBZ

Nicaragua
Banca Movil BAC Credomatic – BAC Credomatic

Nigeria
OneBank – Sterling Bank

Pakistan
HBL Mobile – HBL

Panama
Banca Movil BAC Credomatic – BAC Credomatic

Portugal
ActivoBank – ActivoBank

Qatar
QIB Mobile – Qatar Islamic Bank

Spain
EVO Banco Movil – EVO Banco

Sri Lanka
People’s Wave – People’s Bank

Switzerland
UBS Welcome – UBS

Tanzania
SC Mobile – Standard Chartered

Turkey
Garanti BBVA Mobile – Garanti BBVA

UAE
Mashreq Neo – Mashreq Bank

Uganda
SC Mobile – Standard Chartered

UK
Lloyds Bank: by your side – Lloyds Banking Group

USA
Bank of America Mobile Banking – Bank of America

Zambia
Atlas Mara Zambia Mobile Banking – Atlas Mara

Zimbabwe
SC Mobile – Standard Chartered

 

Best Consumer Digital Banks

Andorra
MoraBanc

Armenia
Ameriabank

Botswana
Standard Chartered

Brazil
Caixa Tem

Bulgaria
Postbank

Chile
BBVA Chile

China
Ping An Bank

Costa Rica
BAC Credomatic

Dominican Republic
Banreservas

El Salvador
BAC Credomatic

Germany
Deutsche Kreditbank

Ghana
Standard Chartered

Greece
National Bank of Greece

Guatemala
BAC Credomatic

Honduras
BAC Credomatic

Hong Kong
DBS Bank

Indonesia
PT Bank CIMB Niaga

Ivory Coast
Standard Chartered

Kenya
Family Bank

Mexico
BBVA Mexico

Myanmar
KBZ

Nicaragua
BAC Credomatic

Nigeria
Sterling Bank

Pakistan
HBL

Panama
BAC Credomatic

Portugal
ActivoBank

Qatar
Qatar Islamic Bank

Spain
EVO Banco

Sri Lanka
People’s Bank

Switzerland
UBS

Tanzania
Standard Chartered

Turkey
Garanti BBVA

UAE
Mashreq Bank

Uganda
Standard Chartered

UK
Lloyds Banking Group

USA
Bank of America

Zambia
Atlas Mara

Zimbabwe
Standard Chartered

 

Best Use of Social Media

Pakistan
HBL