Khan Bank
Mongolia is a fascinating case study in digital banking. A handful of years back, barely anyone in this frontier market went online to track and pay bills, transfer cash to friends, or pay for goods and services.
All that has changed – and fast.
Khan Bank chief executive John Bell reckons the share of total retail transactions carried out in-branch at the counter fell to 6% in December 2017, from 60% three years before.
Lenders are falling over themselves to market their digital dynamism to customers; some, such as Trade and Development Bank of Mongolia, Arig Bank, and XacBank, offer a wealth of impressive online services.
But Khan Bank’s vast retail network – no other lender reaches more people, from shepherds to office workers, in more nooks and crannies of this vast country – gives it a healthy head start over the competition.
Khan Bank has grabbed its opportunity with both hands.
It was the first onshore lender to roll out phone banking, an around-the-clock call centre and drive-through ATMs.
It has more digital banking customers than anyone else. Its Qpay service allows customers to pay utility bills and taxes, make customs payments, open a new account and apply for a host of financial services, all via their smartphones.
Fingerprint identification technology, now widespread across the country, allows customers to log in to their accounts instantly and more securely. And in 2017, the bank rolled out its Khan Pay service, which allows customers to send money to their friends online, via Facebook.