THE POWER OF PEOPLE IN NBK’S DIGITAL BANKING TRANSFORMATION
Rita Makhoul | @rampurple
In the banking industry today, the question no longer is whether the industry will be transformed and disrupted, but how it will be transformed. Until recently, most people would have not imagined that people would be transferring money through their mobile phones, depositing cheques at smart ATMS, and completing shopping transactions without carrying plastic cards or cash.
The international digital security company, Gemalto, estimates that mobile banking users in the Middle East and Africa will exceed 80 million by 2017, and according to “The Digital Banking Adoption in MENA” report, conducted by OMD and Arabnet, in collaboration with OMD Device Research, discloses that 62% of overall bank account holders in the region are adopters of digital banking.
With customers expecting consistent service across all channels, banks across the region have felt the need to step up to the plate and streamline their processes when it comes to customer interaction.
We sat down with Tariq Al-osaimi, Assistant General Manager Head of Innovation & Digitalization at the National Bank of Kuwait’s (NBK) Operations & IT Group to gain valuable insights on the digital banking sector, in particular to Kuwait. How are advancements in technology affffffecting the banking industry, and in particular to Kuwait? If I may quote Mr Pierre Nanterme, CEO of Accenture ‘Digital is the main reason just over half of the companies on the Fortune 500 have disappeared since the year 2000.” This is a major indicator of the impact digitalization and technology has played in all aspects of businesses. This transformation that was initiated in the 1990s with the birth of the Internet until today, had us all adapting.
No industry can escape digital disruption—and banking is in the thick of it especially in Kuwait considering that mobile penetration is extremely high, and 70% of our population is made up of tech savvy youth. Customers want omnichannel banking options. Digitally savvy new entrants are shaking up the service proposition. Digital disintermediation has become the norm. And it is accelerating at a rapid pace. We at NBK have been reinventing ourselves to the new era of technology.
Our mobile channel is exceeding our online banking channels, which is not surprising in Kuwait. This has become our number one channel that our customers use. NBK Management recognizes this and have set up the mobility strategy to better serve our customers.
Tariq Al-usaimi Assistant General Manager Head of Innovation & Digitalization at the National Bank of Kuwait’s (NBK) Operations & IT Group. He is responsible for leading the Bank’s digital strategy and managing Innovation operations. His initiatives include improving service delivery through embracing effective and efficient use of technology; creating business models for delivering new services such as digitalization of business processes; private cloud; virtual desktops; virtual servers; promoting online development opportunities to increase self-service capabilities; mobility; and leading strategic initiatives to transform the technology department to be flexible, adaptable and responsive to customer needs.
Daily time spent watching videos will increase by 19.8% in 2016, while mobile video consumption is growing at roughly five times the rate of non-mobile devices, comprising more than half of online video consumption, according to a recent Zenithoptimedia report. As more and more people increasingly live out their lives online, digital video is serving as a key means for people to satisfy their information and entertainment needs and it is no wonder that advertising has followed suit. Since the 1940’s and the first TV commercial, video has shown its efficiency in the field of advertising and has been claiming its dominance in the ongoing digital era.
Today, advertisers are pumping more money into social video, which seems to stem from the rise in video on various platforms: Youtube & Facebook to name the obvious, as well as Snapchat, Periscope, and Instagram on mobile. Cisco claims that, by 2017, video will account for 69% of all consumer internet traffic. Online video has been changing the way audiences engage with content, ads, and brands, so it comes as no surprise that small businesses and enterprises alike are starting to take advantage. As more devices are placing cameras in the hands of consumers, videos are becoming a new way for people to communicate, as well as a way for businesses and brands to communicate to their audiences.
While videos provide the perfect complement to online marketing, video advertising does not come without its challenges which range from measuring campaign performance and achieving sufficient reach to targeting, creativity, cost and monetization. Keeping up with Fragmentation Video advertising was once confined to a single box. Today, it is fragmented across multiple screens. Since the introduction of the Internet, there has been a dramatic shift in consumer viewing behavior resulting in a steady decline of time spent watching TV, and an increase in digital viewership. According to Accenture’s Digital Consumer Survey, globally the TV has lost 13% of its audience for long-form video content in the past year. Moreover, 87% of consumers are now using TV and a second screen (smartphone, tablet, ebook, or laptop) together. While digital video is helping to build reach that is complementary to traditional TV viewing, this shift in digital viewing has caused several forms of fragmentation that include content, screen, technology and data fragmentation.
Content fragmentation has fractured audiences’ attention across tens of thousands of websites and devices, creating a more complex media planning process with many more channels to consider. ‘It’s a whole lot complex now, because you’ve got one too many choices from a platform perspective. Video is no longer just being consumed on Brands should plan cross-screen, but think of mobile first. Amongst all devices, consumption of video is shifting towards mobile devices as users upgrade to higher quality devices, screens grow and networks support larger data loads. According to the Interactive Advertising Bureau or IAB (an association for the advertising industry that develops industry standards, conducts research, and provides legal support for the online advertising industry), 48% of consumers use mobile and mobile apps to view video. ‘People are watching and enjoying a lot more video on many difffffferent platforms but particularly in mobile and we know that as much as 25% of mobile time will be video within the next couple of years’ said Ian Manning, Head of Agencies at Facebook MENA.
While mobile accounted for more than half of digital ad spending in 2015,
agrees, adding that ‘A creative agency’s business models are really built around longer format…and they haven’t really shifted quickly enough to understand that they need to make more snackable content, shorter version content that consumers can engage in a short space of time’.
In addition to tailoring content to devices, marketers must also tailor content to their audiences through targeting. With more and more brands creating and distributing video ads, audiences have grown impatient and less receptive towards video ads, especially those that are irrelevant to them. While this applies to all mediums, the time frame for success is much shorter on mobile devices. Targeted advertising that fits consumers’ interests and browsing habits increases the chance that they will pay attention and watch a video ad in full. In addition, location-based marketing, which is gaining traction, provides marketers with the technology to deliver content to consumers based on where they are at any given moment. The Pursuit of Monetization Targeting and consumer engagement also play a big role in the monetization of video advertising. In order to generate money, video advertisements need to be relevant to both the audience viewing them as well as the content of the page on which they are located. This is even more applicable to in-stream video, where ads need to work with the length, style and subject of the video with which they are served. To ensure maximum relevance and viewability, publishers need to provide demand sources with as much demographic and contextual data about their audiences as possible, as well as details of the content around which the video ads will be served. In addition, video ad placement and functionalities such as auto-sound (which can be potentially irritating) need to be taken into consideration to avoid alienating audiences.
Perhaps one of the biggest challenges faced by publishers is finding the balance between creating monetization opportunities (and more elaborate advertising solutions) while adding value to the consumer experience. One common problem with video advertising is pre-rolls that can be quite intrusive and are one of the major reasons people install ad blockers. However, ‘if you use that media in a way that promotes exclusive new branded content like you use a teaser inside your pre-roll these can actually trigger and drive traffic to your actual branded content’, said Victor Ho, Global Marketing Manager of Daily Motion. Advertisers can also make use of native video ads which are seamlessly integrated in the feed of the content rather than forced to the user.
The solution, according to Manning, is as simple as creating content that is relevant to viewers while giving them the choice of watching the ad or not. ‘It’s quite easy to skip advertising…but if you make the advertising targeted to that individual, you use the data that you have available to ensure that you’re targeting the right people…and coming up with the right type of creative messaging to target that information’. Giving the user the choice with how they want to engage in the ad (whether