written by Anton Van Zyl – CFO – SwitchPay
Banks, Credit Providers and large Retailers have over the years digitized many products and processes, but this has often been in silos and has not provided a seamless experience to Customers when dealing with different divisions or product departments.
These organisations have fallen behind on the customer experience gap due to their large size and compartmentalised approach. They have traditionally also built there systems around existing platforms, for example Banks who have been offering Card POS Terminals and Traditional Bank Accounts as the main payment switches for years, without looking at alternatives which are more cost effective, convenient and / or accessible to Customers. In many instances they have not leveraged their existing infrastructure and strong positions in certain areas to create other (non-interest) revenue streams with little to no direct costs.
Fintech companies have been able to bridge this divide very successfully and many Banks have responded by opening their back-end systems through an Open API Market Place. SwitchPay has specifically focussed to take advantage of this and was the first company in South Africa to launch its first products utilising the Open API Market Place of Nedbank.
For example, our switching technology has allowed us to provide a small Purpose Based Loan (“PBL”) on a Nedbank Card POS terminal at a FNB Merchant, to an ABSA Customer for a loan product offered by Capitec as the Credit Provider. The transactions are seamless to the Customer and the Customer, Merchant, Credit Provider and Nedbank can track the transaction from beginning to end using various integrated communication technologies. This is but one example but shows how technology has enabled a transaction to be completed in minutes at minimal direct cost. Such a transaction would have taken days (as opposed to minutes) and would have been too costly to even be considered.
Contact us to find out more about our innovative products and how we can help you by, “Linking you through Technology”!