Predicted Disappearance of Bank Cards Within the Next 5 Years?
In the heart of Eastern Europe, Belarus is witnessing a significant shift in the way its citizens make payments. The debit card market in the country is experiencing a surge, driven primarily by the global and regional shift towards electronic and cashless payment methods.
Bank BelVEB, a key player in this landscape, is focusing on personalization to better understand client needs and offer relevant products. This approach is reflected in their pension cards, which offer a higher interest rate on the current account balance, making them a convenient tool for savings.
The debit card market in Belarus is expected to continue digitalizing, with virtual cards, installment cards, and wearable devices playing a significant role. Digitalization, including virtual cards for online purchases, convenient mobile apps, and contactless payments, is a key driver in the growth of demand for cards.
Belarusians consistently show interest in debit cards, with many opening additional cards for attractive conditions. Clients open new debit cards for various reasons, including clear additional benefits, separating personal and business expenses, travel, savings, and corporate projects.
However, clients still prefer to get banking products online but often visit branches for a plastic card. Omnichannel communications, including contact centers, online chats, and mobile apps, are important for client convenience.
Competition in the debit card segment is expected to intensify, with banks offering more cashback, new digital services, partnership programs, and attractive bonuses to attract customers. There are over 19 million debit cards in circulation in Belarus, representing nearly 90% of the population.
At Bank BelVEB, a basic account for receiving a salary can be opened regardless of the company's bank. The loyalty program with high cashback in real money is a significant factor at Bank BelVEB.
The national payment system is gaining popularity in Belarus, particularly due to its relevance for transactions within Russia. A significant number of clients (53.3%) hold cards from more than one bank, affecting the bank's communication strategy.
Artificial Intelligence will become a significant assistant, analyzing expenses, suggesting budget distribution, and offering personalized financial advice. Cashless payments now account for over 70% of all transactions in Belarus, up from 55% five years ago.
As Belarus continues to embrace digital payments, banks must compete for client attention due to client loyalty no longer being reliable. The prevailing international debit card market trends suggest that Belarusian banks are likely adopting similar strategies to meet rising demand driven by digital payment adoption and consumer expectations for secure, convenient, and rewarding card usage.
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- The banking-and-insurance industry in Belarus is undergoing digital transformation, with technology playing a crucial role in the evolution of the debit card market.
- As the market for debit cards in Belarus continues to expand, finance companies are offering more incentives such as cashback, digital services, and attractive bonuses to attract clients in the business sector.
- The growing interest in cashless payments and the increasing prevalence of technology in daily transactions indicate that the technology sector could contribute to the overall success of the banking-and-insurance industry in Belarus.
