Despite having one of the highest Internet penetration and smartphone usage in the GCC, mobile banking in Qatar remains low, but education on usage and security will play a key role to help boost uptake, according to industry sources.
Citing figures from the Ministry of Transport and Communications, Chandramouli Kundagrami, head Digital Strategy, Infosys Finacle, India, said 44% of the overall population in Qatar does not use e-Banking services due to security reasons.
He also said 62% of Qatar customers find mobile banking “difficult to access,” referring to another report by E&Y on GCC banking.
“Ease of use is another focus area for banks because today, to make [online banking] secure, the customer has to remember a user ID, a password, and then there is a strict question, as well as is an OTP (one-time password), among many other security features.
“We have to make banking frictionless. To do this, we have to make the best use of technology such as facial recognition, which can happen in both the Internet, as well as the smartphone. Qatar has a high smartphone penetration but it is not being leveraged as a technology,” Kundagrami told Gulf Times on the sidelines of a recently held summit on new age banking.
During his presentation, Kundagrami stressed that “education about usage and security [is the] key for uptake.”
“It is a matter of telling the customers what are the security mechanisms the bank has implemented, what are the factors that can lead to fraud, and what are the information that they should not be sharing. Banks have to get this across the media and to the people. They should have this continuous customer engagement and discussion with them,” he stressed.
This was corroborated by another speaker during the event, Neil Andrew Buckley, Group head of Technology & Operations at Doha Bank.
Citing an E&Y report, Buckley said the GCC has a tech-savvy population. He said up to 98% of surveyed baking customers are equipped with modern smartphones, and a large number of customers use various smartphone apps daily.
However, Buckley said “mobile banking penetration is very low mainly due to lack of convenience.” Topping the list of factors that inhibit digital customers in the GCC in the E&Y report is “difficult access” at 46%, he said.
Other factors include “unintuitive user experience” (31%), “not real time” (31%), “slow transaction speed” (36%), “not tailored, does not fulfil my needs,” (37%), and “non-availability of preferred channel” (43%).
“The key is education […] not just around banking products but also around security, social media, and the entire digital standpoint, so this is how banking is changing. It is not just about ‘I have an account’. It is all about the relationship. It is all around creating that ecosystem for the customer to live in that’s trustworthy, and they’re getting value,” Buckley said.
To increase their digital footprint, Buckley said GCC banks should prioritise on channels, payments, and process automation. “Among the benefits of these digital initiatives is reduced cost by 25% to 35%, enhanced customer satisfaction, and improved turnaround time by 50% to 60%.”
