The future of finance is personal: Customer-focused finance
In today’s highly competitive market, customer-centricity is no longer a buzzword, it is a strategic imperative. Nowhere is this more evident than in financial services, where rigid processes and product-centric models once reigned. Today, modern customers, whether banking clients or retail shoppers, expect personalisation, transparency, and ease. If traditional financial institutions fail to meet these expectations, agile fintechs and even retailers are stepping in to do so. The message is clear: deliver what customers value most, or risk losing them.
The new mandate: Put the customer first
For decades, many banks and insurers were built around internal silos and legacy systems that prioritised products over people. This approach worked when customers had few alternatives. Historically, financial institutions operated in environments where limited competition and rigid processes did not significantly impact business success. However, this has changed dramatically. According to the Deloitte Digital Banking Maturity Report (2024), customer expectations are now shaped by digital-first experiences, and banks must evolve to remain relevant in a rapidly shifting landscape.
Today’s customers reward organisations that put them first, and they have little patience for those that do not. The old service delivery model is no longer fit for purpose and has become a prime target for disruption by agile, tech-enabled challengers.
Fintech innovators are using human-centred design to craft solutions focused on customer convenience and real-life needs. They move quickly, test frequently, and are not afraid to rethink long-held assumptions. Traditional financial institutions that remain product-led and slow to change are increasingly falling behind. What is needed now is reorientation: banks and financial services providers must move from pushing products to solving problems. That shift begins with reimagining services through the lens of the customer.
Data and personalisation: From insight to intuition
True customer centricity is impossible without data. While financial institutions possess vast amounts of customer information, it is often fragmented across departments and systems. The first step is integration.
For example, Standard Bank – Africa’s largest bank – recently unified its customer data onto a single platform to gain a 360-degree view of each client. As a result, customer queries were resolved 86% faster and customer satisfaction increased by 28%.
Once data is centralised, it must be transformed into actionable insight. Advances in artificial intelligence and analytics now make it possible to anticipate needs instead of just responding to them. According to research by The Financial Brand, 44% of global organisations are already scaling AI specifically to personalise customer experiences.
AI enables banks to analyse behaviour, financial patterns, and preferences to offer relevant solutions in real time. This is the foundation of hyper-personalisation, where offerings, advice and interactions are tailored to the individual. Personalisation, when done well, does more than drive sales. It builds trust. A banking app that proactively flags a budgeting tip, or offers a loan when the data shows it is needed, is delivering service that feels intuitive, not intrusive.
However, the foundation for all of this is clean, accessible data. A recent study showed only 6% of brands have fully centralised customer data environments. Overcoming this fragmentation is vital. A single view of the customer not only enables personalised engagement, but also streamlines internal processes, reduces duplication, and cuts costs. This creates not only a better experience but also improved data governance, privacy assurance, and long-term customer trust. In other words, data powered personalisation supports both the customer experience and the bottom line.
Fintech and neobanks: Redefining the playing field
If traditional financial institutions need further motivation to accelerate their transformation, they need only look at the competitive edge of fintechs and neobanks. Across Africa and globally, these players are redefining customer experience with digital-first, mobile-enabled, intuitive platforms.
Neobanks in particular have embraced AI and data analytics to deliver seamless, low-friction banking experiences. Their apps are as user-friendly as consumer social platforms, and their products are designed around lifestyle, not legacy. By offering services that are simple, fast and relevant, they have redefined what customers now expect from their financial providers.
Africa has seen explosive growth in this space. From the pioneering days of M-Pesa in Kenya, mobile money and fintech solutions have brought millions into the financial system. Today, digital-only banks, like Kuda Bank in Nigeria, and TymeBank in South Africa, continue to raise the bar.
TymeBank, for example, has onboarded over 10 million customers in under six years. It credits this success to a customer-first approach, intuitive technology, and an innovative “phygital” model that places banking kiosks in retail stores. This model meets customers where they are – digitally and physically. In 2023, TymeBank also became the first African neobank to reach profitability.
These new entrants are not just taking market share – they are reshaping expectations. Increasingly, customers expect their banks to be as easy to engage with as their favourite shopping apps. Finance is being reimagined as a service, not a system; something fluid, intuitive, and responsive to individual needs.
Where retail and finance converge
Retailers are not waiting on the sidelines, either. Many have begun embedding financial services directly into their customer journey, creating frictionless experiences that blur the lines between commerce and banking.
This trend, known as embedded finance, is reshaping the consumer landscape. Whether it is “buy now, pay later” options at checkout or in-store money transfer services, customers increasingly expect finance to be integrated, invisible, and convenient.
A leading example is Shoprite’s Money Market Account. Designed for inclusivity, it allows customers – even those without smartphones – to access basic banking services using feature phones. Deposits, transfers, and withdrawals can all be done at store tills. By combining retail convenience with financial access, Shoprite is responding to customer needs in a practical, low-barrier way.
This is a challenge to traditional banks. If a retailer can offer a basic, intuitive, cost-effective financial service at the point of need, what is stopping the bank from doing the same? The answer often lies in outdated systems, siloed thinking, and a failure to see through the customer’s eyes.
Encouragingly, South Africa’s regulators are supporting this shift. The South African Reserve Bank’s Digital Payments Roadmap promotes interoperability, innovation, and financial inclusion across the national payment system. Meanwhile, the Financial Sector Conduct Authority (FSCA) is advancing the Conduct of Financial Institutions (COFI) Bill, which aims to modernise market conduct regulation and foster consumer-centric financial services. These frameworks signal a clear direction: customer-focused finance is not just a competitive strategy – it is becoming a regulatory expectation.
Strategies for a customer-focused future
Becoming truly customer-focused requires more than new technology. It demands a cultural and operational transformation. For leaders seeking to act, here are five critical strategies:
- Unify customer data: Invest in platforms that provide a single view of the customer, enabling faster, more personalised service.
- Use AI to personalise intelligently: Leverage analytics to anticipate needs and deliver tailored experiences; not generic campaigns.
- Streamline journeys: Simplify every touchpoint, from onboarding to service queries. Intuitive design builds trust.
- Educate and empower: Provide customers with tools and insights that improve financial literacy and wellbeing. Success should be mutual.
- Blend digital and human: Automate routine interactions, but ensure customers can access skilled, empathetic support when needed.
Customer-focused finance is a journey that few organisations can walk alone. Strategic partnerships play a vital role. For instance, at BCX, we work with leading banks and retailers to implement AI-driven platforms, intelligent customer analytics, and digital ecosystems designed to serve people better. The aim is to deliver transformation that is both strategic and operational, creating intuitive, efficient services that customers value.
Looking ahead: Relevance is the real currency
In a world where disruption is constant and expectations are rising, the true differentiator is not product range, branch network, or size. It is relevance. The organisations that will thrive are those that continuously align with their customers’ evolving needs and preferences.
Whether through fintech innovation, retail partnerships, or data-driven personalisation, the imperative is the same: build systems that understand, respond to, and anticipate the customer.
Meet expectations, exceed relevance, and do it before someone else does.
References
- Deloitte (2024). Digital Banking Maturity Report. https://www2.deloitte.com
- Salesforce (2023). Standard Bank Customer Story.
- Froment, L. (2023). Banking on Personalised AI for Customer Experience, The Financial Brand.
- Fintech News Africa (2024). TymeBank Surpasses 10 Million Users, Becomes First Profitable African Neobank.
- Shoprite Holdings (2020). Shoprite Launches Money Market Account to Increase Financial Access.
- South African Reserve Bank (2024). Digital Payments Roadmap. https://www.resbank.co.za
- Financial Sector Conduct Authority (2024). Conduct of Financial Institutions (COFI) Bill Overview. https://www.fsca.co.za
