Digital Banks, Digital Payments, and Digital Lending – The Unifying Factor?

In recent years, digital financial services have become an important driver of financial inclusion in emerging markets and developing economies. Digital finance has the potential to provide affordable, convenient, and secure banking services to poor individuals in developing countries

Digital banks, digital payments, and digital lending certainly have a unifying factor: they are digital financial services. Digital financial services are financial services provided through mobile phones, computers, the internet, or cards linked to a secure digital payment system.

According to Gomber, Koch, and Siering (2017), digital finance encompasses a magnitude of new financial products, financial businesses, finance-related software, and novel forms of customer communication and interaction – delivered by FinTech companies and innovative financial service providers.

While no universal definition exists, there however is some general agreement that digital finance incorporates all products, services, technology, and infrastructure that enable individuals and organizations to have access to payments, savings, and credit facilities digitally without the need to visit a bank branch or without dealing directly with the financial service provider.

Digital payments have proved to be central to recent advances in financial inclusion in many African countries. Fintech firms, such as neo-banks (non-bank fintech), peer-to-peer lending platforms, online lenders, and customer-specific platforms are major players in digital financial services. The demand for these services continues to grow due to mobile-enabled consumers, particularly younger generations who increasingly demand more convenient financial services through digital channels. In sub-Saharan Africa, smartphone penetration was 39 percent by the end of 2018 and is estimated to rise to 66 percent by 2025.

CWG has partnered with VERICASH to offer complete digital OmnichannelPLUS transformation of all your financial services across all channels delivered remotely and instantly to all your customers.

Through digital channels, customers can start creating bank accounts for onboarding through simple steps collecting data using VERICASH technologies and third-party technologies involved in digital identity management.

VERICASH platform integrates and aggregates financial services from different service providers and aggregators allowing the customer to browse, search, mark as favorite, and set schedules and reoccurrences for these payments from one centralized marketplace.