One of the banks in Kazakhstan aimed to create the most convenient mobile and online bank for small businesses. We conducted a competitive analysis of the local market for the company and, using the best fintech practices, we formed backlogs that would help achieve their goal.
In the segment of services for entrepreneurs, the Kazakhstani bank that approached us sought to become the bank of choice - a partner that helps launch businesses, establish processes, and start earning. The bank recognizes itself as a leader in terms of quality business services, but to achieve their goalto become the best bank for business in Kazakhstan, they needed new ideas that went beyond the local market. They turned to Markswebb for assistance.
The bank's product team was drawn to the idea of researching the Business Online Banking Rank and Business Mobile Banking Rank.
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To adapt our existing benchmarks to the specifics of Kazakhstan, our researchers conducted a series of interviews with product and customer service directors, studied the regulatory framework, and examined the specifics of product usage. It turned out that the B2B markets in Kazakhstan have much in common with other Asian and European markets, but some significant differences are hidden in legal details or specific practices.
For example:
Otherwise, the evaluation systems for mobile and online banking underwent minimal changes. Next, together with the client's team, we defined the research perimeter: it included our client and four other popular banks in Kazakhstan.
Business models:
Participants:
Mobile banking: 500 evaluation criteria
Online banking: 760 evaluation criteria, 130 user scenarios
Products:
The UX audit was conducted in-office, with entrepreneurs in Kazakhstan agreeing to provide access to the interfaces for each service. Researchers went through 130 user scenarios in each mobile and online bank, simultaneously evaluating the completeness of their implementation according to hundreds of criteria.
Each criterion had its own weight in the evaluation system, depending on the frequency and criticality of the task. The weights were distributed to total a maximum of 100 points - representing the level of an ideal digital service.
The final score indicated how close each bank came to this level. Scores for each digital channel were compiled into 12 rankings: one overall and 11 product-specific.
Rankings are a key tool for competitive analysis. They allowed us to compare the development level of all banks, understand the market average, and see in which niches the bank that approached us lagged or led, and then detail in which specific products and capabilities. This approach helped to create an objective market picture, independent of brand popularity and influence.
Our client's confidence in its digital leadership was confirmed - its services for entrepreneurs ranked in the top 3 in all product niches. The mobile bank stood out, appearing the most advanced in the market, offering the most convenient credit management, progressive foreign economic activity handling, payroll project, and accounting.
More growth points were found in the online bank, as the product was launched recently and the team had not yet implemented all development plans.
We reviewed interface prototypes and helped adjust the development course before the launch. Comparative analysis showed that in Kazakhstan, applications for entrepreneurs are generally more functional and advanced than web services.
In mobile banks, almost all financial services are available. Meanwhile, some online banks only have basic cash and settlement functions, and new products cannot be opened. In certain banks, entrepreneurs could not even send a payment: they could create it, but the signature had to be done through the app. Based on this, researchers proposed development strategies for different channels considering the development level of each.
Since the client's app already outperforms competitors in many product aspects, it is necessary to increase this lead. We formulated 120 recommendations, with the main goal being to cover as many additional customer scenarios as possible and create the most progressive experience.
The implementation of the majority of recommendations at the second level would promote digitalization and provide additional capabilities for entrepreneurs. For example, in the accounting module, the researched bank was the only one in the market that allowed tax calculations for individual entrepreneurs. To enhance this experience further, the addition of tax declaration generation and submission could be implemented. This would be the first implementation in the market that fully addresses the business's tax reporting needs.
At the third level, the focus was on working with new products. One such product in the mobile banking app was document management, which is a growth area for all applications in Kazakhstan. The bank that successfully and comprehensively integrates document management into its app will strengthen its reputation as the best choice for businesses and retain users for the long term.
For the client bank, researchers recommended initiating the development of document management with the most common and in-demand operation, which is invoice generation from within the app.
Researchers recommended using the gap between mobile banking and online banking in the market as an opportunity for growth. To achieve this, they prepared over 100 recommendations. The implementation of these recommendations aims to transform our client's online banking into a convenient starting point for small businesses.
Similar to mobile banking, all recommendations were divided into three levels. The first level covered basic tasks. For example, it addressed the need for user-friendly and functional forms for opening credit accounts, deposits, and ordering business cards, which were lacking in almost all of the researched online banking platforms. These products are crucial for operational activities and will assist entrepreneurs in developing their businesses using online banking.
On the second level, the focus is on developing additional capabilities. This includes enhanced management of connected products, fine-tuning of services, and digitization of new tasks.
For example, in document management, it involves convenient invoice generation at any stage of the transaction, whether it's from the contacts directory, the accounting interface, or the context menu of a contract. The researchers selected best practices from foreign services as exemplary models. These services seamlessly integrate document management into various products.
The new product in the online bank was supposed to be a banking marketplace. It aimed to transform the web service into a comprehensive entry point for the bank and start offering business bundles - package offers with multiple products. This recommendation aligned with the strategic direction of making the bank user-friendly specifically for business startups.
All the recommendations were grouped by the researchers into two backlogs - quick improvements and long-term ones. Each recommendation was accompanied by growth forecasts for customer experience quality based on benchmark assessments. The initial improvements elevated the bank's ratings in all product rankings by effectively addressing critical and frequently encountered tasks for entrepreneurs. The second set of improvements significantly widened the gap.
By the end of 2022, the bank that approached us had nearly fully digitized its office for entrepreneurs: now any regulator-approved product can be purchased online. For example, it became possible to obtain unsecured and subsidized loans. Opening an account for individual entrepreneurs and limited liability partnerships (LLPs) takes less than 4 minutes.
As a result, the conversion rate for individual entrepreneur onboarding increased tenfold, reducing the onboarding time from 17 minutes to 4 minutes. Approximately 90% of all payments, including foreign currency transactions, were automated. The digitization itself covered 95% of user tasks.
The areas that have not yet been digitized include secured lending, onboarding of non-residents, and businesses with multiple founders. The bank's product teams not only received recommendations for development, but also had objective metrics that they used to measure the impact.
The project's success was largely driven by the researchers' technological approach, as they quickly and comprehensively adapted the competitive analysis methodology to the specifics of the Kazakhstan market. This helped shorten the project's timeline from start to the implementation of the first recommendations and allowed for measuring results using adapted benchmarks.
Every year we conduct up to 15 studies of digital services. These are industry benchmarks that reflect the state of the market and trends.
