A month ago, Facebook announced that it is planning to release its digital currency dubbed Libra Coin in 2020.
If it goes through the regulatory hurdles, Libra could turn digital currency on its head and potentially obliterate existing cryptocurrencies such as Bitcoin and Ethereum.
Facebook said it plans to test Libra through Whatsapp before releasing to the rest of its 2.4 billion Facebook community which also includes Instagram.
With an increasing number of people owning smartphones and many more joining social media, these two complementary factors are the next battlegrounds to capture an estimated 2billion unbanked people – the same people that banks are trying to reach.
If Libra achieves the scale that Facebook envisages, it will give traditional banks a run for their money.
According to KCB Group CEO & MD, Joshua Oigara, banks have to be at the forefront of two critical factors to stay ahead of the game:
Innovation in FinTech
He reckons that banks that will invest more in technology will be big winners in the short to medium term.
“87 percent of our services are now being delivered through mobile technology as one way of enhancing services,” said Oigara.
Big Data Analysis
Banks are sitting on a gold mine of data yet they have not tapped into this data to respond better to the needs of customers by developing intuitive data-driven products.
Oigara gives an example of Facebook which recommends to users places to go and things to check out based on a user’s web history.
“In fact, banks have so much more information about customers it’s unfortunate that Facebook seems to be taking advantage to do business,” said Oigara.
“Banks need to use technology to deliver more and better services for their customers. As KCB Group, about 87% of all our transactions are delivered through mobile technology.” Our Group CEO @JoshuaOigara on the role of technology in Banking #AfroAsiaFintechFest pic.twitter.com/yNR8EBFOha
— KCB Group (@KCBGroup) July 10, 2019