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The Top Digital Banking Mega-Trends to Keep in Mind for 2023

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Luis Monzon
Luis Monzon
Journalist. Reach me at

Super apps, banking-as-a-service, behavioural banking and cyber security.

These are just a few of the trends that promise to make the future of banking fast, frictionless, and personalised. The increasing prevalence of smartphones means that billions now have an entire banking system in their pockets.

For the over 10.1 million people that use the digital channels of South African banking group Capitec, a host of new innovations in the financial services sector means their banking experience is about to get a whole lot slicker.

“The financial services world is moving toward making more clients’ banking activities and relationships digital. In China, super apps like WeChat allow you to bank, shop and entertain yourself all from a single app,” says Wim De Bruyn, Capitec CIO.

“Across the world, banks are beginning to investigate similar functionality that will help clients to live better. We want to continue to be at the forefront of that – enabling digital by putting data to work helps our clients live better as it makes banking even more simplified and personalised.”

De Bruyn has identified the digital banking megatrends to keep in mind for 2023:

  • Hyper-personalised banking

It is estimated that the amount of data created over the next three years will be more than the data created over the past 30 years. This information allows organisations to analyse client behaviour and craft more personalised suites of products and services using Machine Learning. This means an end to unnecessary notifications about loans you may not want or need. Banks will use your data to create personalised prompts that serve you something that adds real value.

De Bruyn explains, “With over 10.1 million digital clients, we can collate immense amounts of data, which we then use to give hyper-personalised prompts to help our clients improve their banking behaviours – and ultimately, their lives.”

  • Creating trust

In May, the Ombudsman for Banking Services reported a 7% increase in complaints with most relating to fraud. Trust and security is always a top priority across the banking sector and are now more important than ever.

De Bruyn says, “Document fraud is a major issue in South Africa. Scammers often intercept invoices and then change the banking details to reflect their own. Others use fake pay slips to secure loans they may not be able to afford. By using Sky QR, Capitec has seen a reduction in the number of fraudulent documents in circulation, with over 85 million QR codes generated and scanned since the partnership started over a year ago. Capitec clients know that their bank statements and payment confirmations are trusted.”

  • Heavy on function, light on friction:

Convenience is everything and frictionless functionality is what happens when you elevate simplicity to a science. Through easy mobile transactions like contactless card payments, digital wallets and one-click payments, banks are getting better at making sure that clients always have uncomplicated and efficient access to their money.

Through the idea of banking-as-a-service, a concept that allows banks and non-banks to give clients a more seamless offering, many companies will soon be able to offer a wide range of retail banking services.

A good example of this is being able to take out a loan or payment services without needing to directly engage your bank. With the widespread use of smartphones, these types of transactions have become a cheaper, more convenient, and safer alternative to cash.

“Covid-19 has helped to accelerate adoption of these trends. We’re continuously innovating to make payments more frictionless. Our Scan to Pay and Pay Me features, for example, empowers clients to make or receive secure, cashless payments without their cards ever leaving their wallets. And better yet, all these features are completely free,” says De Bruyn.

De Bruyn says he expects a burst of innovation in the frictionless space this year. “A lot of attention will be given to ‘small’ innovations that create positive changes in our clients’ lives.”

Edited by Luis Monzon
Follow Luis Monzon on Twitter
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