Tehran(Bazaar): Luigi Wewege in interview with Bazaar News Agency said: Banks will close more physical branches and divert resources to enhance digital banking services.
Luigi Wewege is President of award-winning Belize, Central America headquartered Caye International Bank, published author of The Digital Banking Revolution - now in its third edition, and has co-authored economic research which was presented before the United States Congress. He currently serves as an Instructor at the FinTech School in California and as an Advisory Board Member of Fort Kobbe International Vaults. He holds an Italian MBA from The MIB Trieste School of Management with a major in International Business, as well as a BSBA with a triple major in Finance, International Business, and Management from the University of Missouri-St. Louis.
Following is the full text of the interview:
Bazaar: What effect does banking digitization have on the economic growth of countries?
Wewege:I believe that the growth and development of banking digitization contributes massively to the economic transformation of countries.Any innovation to a country’s financial sector in its current state will influenceits modernization in the future.
Information technology has gone from gigantic computers that could fill a room to handheld devices. With the advent of new banking technologies helping digitization this will create more innovative solutions. Thus, allow companies to optimize many of their financial services and make them easier, more accessible to the population and cheaper.
With banking becoming less expensive will allow more people to enter the banking system and in turn provide much more of the population with the ability to purchase products, receive financing, etc. thus in turn increasing the economic growth of the country.
Bazaar:How do you see the vision of digital banking for the coming year?
Wewege:Banks will close more physical branches and divert resources to enhance digital banking services. This builds on the trend of managing bank accounts online, up to and including fund transfers and deposits.
Enhanced services will allow transactions to be posted sooner and allow clients quicker access to deposited funds. Real-time customer support will remain but will be via online communication.
Besides less bank branches I envision the rapid enhancement of most digital banking experiences including mobile to get a lot better. Customers are looking for more features and more control over mobile appsin general, they want more access to a bank’s different products and services within one cohesive mobile experience. Millennials are aging; they will need more services, and their expectations will include a world-class mobile experience. And members of Gen-Z will have even higher expectations for mobile.
Bazaar:What steps should be taken by governments and financial institutions to accelerate this process?
Wewege:To accelerate this processgovernments, need to introduce legislationaiding the sandbox framework adopted by several leading jurisdictions so far. This is one mechanism for regulatory reform to support the development of innovative technologies and business models where the framework does not limit the area of regulations, but currently covers those in financial services.
How it works is that any company, including international companies, can apply to conduct demonstrations under this new framework in a particular country and test the possibilities of innovative technologies such as AI, IoT or blockchain for future business, especially if they cannot start new businesses using these technologies due to existing regulations.
These projects are then monitored, so the government can review the social and economic viability of the technology, how the technology fits in with current regulations, and what changes need to be made.
For financial institutions to accelerate they will need to be technologically innovative to keep up with the fast-moving and rapidly growing FinTech space. This means that banks will need to be nimble and more decentralized and must embrace new applications, platforms, and various web-based financial services.
Bazaar:What should be done by financial institutions to prevent the misuse of digital banking platforms?
Wewege: Financial institutions need to combine security with blockchain technology. Banks are moving into the space and beginning to explore disruptive technology around tokenization and transaction speeds. The protection that banks provide is still a valuable service, especially to retail investorsand this function, combined with the efficiency of blockchain technology, is a winning combination.
This will alleviate the concerns of many about security and misuse, because with blockchain technology there is a clear distinct ledger of all the changes/transactions which have taken place - the challenge is how quickly these banks can adapt.
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