Incumbents have to act now in order to be prepared for the digital bank launch in Singapore by 2021. The New Digital Banks (NDBs) aim to launch customer-centric, differentiated products to meet
their lifestyle goals along with simple and superior user experience.
The new age customers expect transparency and frictionless
experience from their banks.
The incumbent banks should leverage the trust and relationship
built with their customers over the years. They should re-evaluate
their strategy, invest in understanding customers’ needs and enable a digital experience that is at par with leading technology players in the market. Incumbents should take timely action by choosing a viable option to position their business ahead of competition and disruption!
Insurers today, big and small, are facing disruption due to the increasing deployment of InsurTech technologies and by engaging EY, insurers stand to reap benefits of the latest innovations and insurance products, capitalize on new markets as well as future-proof business for with the help of EY's expertise in this sector.
The future of fin tech and financial servicesVarun Mittal
In this roundtable, held as part of the investment summit — “ Deal Day” powered by EY in November — we hosted 22 senior financial services executives investors and FinTech founders to talk about the evolving trends around FinTech innovations and investment in the next 12 months.
Proof of Concept Kit - Wealth ManagementVarun Mittal
The market landscape of wealth and asset management is quickly evolving, with non-HNWI customers looking for wealth management solutions and a general increase expectations of customer service and demands. Hence, wealth managers need to be able to keep abreast with current trends, as well as offer investment products to the new demographics. EY is able to offer support and services in helping FIs stay relevant and provide their customers with the best investment services possible.
A compiled detail version of EY Customer Segment Offerings to these group of people - Migrant Workers, SMEs, Entrepreneurs, The Future Silver Economy, Rural Agri-Laborers, Students Studying Abroad, Non-Profit Organizations (NPOs), Gig Economy Workers, SINKs & DINKs and NSF
Case study: Transforming FE Credit's lending processes with robo-lendingVarun Mittal
FE Credit, one of Vietnam’s oldest and the largest consumer credit company, worked with EY and several FinTech partners to implement a robo-lending platform app, suitably named as $NAP, which digitizes the whole process of customer on-boarding, loan application, know-your-customer (KYC), credit underwriting, loan approval and disbursement.1
As a result, FE Credit reduced the borrowing process from 4-5 days to less than 15 minutes, thus drastically increasing its appeal to customers, while overcoming the challenges inherent in the traditional lending model.
We are providing one-stop solution help organizations understand eligibility and availability of incentives. We offer assessment, management, certification and government agency interfacing to our clients bringing transparency, accountability and scalability for innovation and finance departments at our clients.
Providing an End to End value proposition to our financial services clients looking for innovative solutions with expertise around co-creation of problem statements, outreach to the vast network of FinTechs, assess the fintech solutions and organize an innovation challenge.
Insurers today, big and small, are facing disruption due to the increasing deployment of InsurTech technologies and by engaging EY, insurers stand to reap benefits of the latest innovations and insurance products, capitalize on new markets as well as future-proof business for with the help of EY's expertise in this sector.
The future of fin tech and financial servicesVarun Mittal
In this roundtable, held as part of the investment summit — “ Deal Day” powered by EY in November — we hosted 22 senior financial services executives investors and FinTech founders to talk about the evolving trends around FinTech innovations and investment in the next 12 months.
Proof of Concept Kit - Wealth ManagementVarun Mittal
The market landscape of wealth and asset management is quickly evolving, with non-HNWI customers looking for wealth management solutions and a general increase expectations of customer service and demands. Hence, wealth managers need to be able to keep abreast with current trends, as well as offer investment products to the new demographics. EY is able to offer support and services in helping FIs stay relevant and provide their customers with the best investment services possible.
A compiled detail version of EY Customer Segment Offerings to these group of people - Migrant Workers, SMEs, Entrepreneurs, The Future Silver Economy, Rural Agri-Laborers, Students Studying Abroad, Non-Profit Organizations (NPOs), Gig Economy Workers, SINKs & DINKs and NSF
Case study: Transforming FE Credit's lending processes with robo-lendingVarun Mittal
FE Credit, one of Vietnam’s oldest and the largest consumer credit company, worked with EY and several FinTech partners to implement a robo-lending platform app, suitably named as $NAP, which digitizes the whole process of customer on-boarding, loan application, know-your-customer (KYC), credit underwriting, loan approval and disbursement.1
As a result, FE Credit reduced the borrowing process from 4-5 days to less than 15 minutes, thus drastically increasing its appeal to customers, while overcoming the challenges inherent in the traditional lending model.
We are providing one-stop solution help organizations understand eligibility and availability of incentives. We offer assessment, management, certification and government agency interfacing to our clients bringing transparency, accountability and scalability for innovation and finance departments at our clients.
Providing an End to End value proposition to our financial services clients looking for innovative solutions with expertise around co-creation of problem statements, outreach to the vast network of FinTechs, assess the fintech solutions and organize an innovation challenge.
Beyond Banking: New Business Models for the Digital EraJessica Wilkinson
The banking and financial services industry is undergoing a period of unprecedented disruption, which is re-shaping the competitive landscape.
Criterium Group believes we’re experiencing a fundamental change in how people manage, save and spend their money –which means banks and credit unions will need to re-imagine how they deliver value to customers and members.
We’re experiencing a disintegration of the financial industry. But disruption is exciting, not scary. As our relationship with money evolves, there are endless opportunities to delight customers and deliver value. However, competing in a digital age takes a completely different approach.
Criterium Group has considered the changing landscape from a competitive, financial, technological and operational perspective to re-design the traditional banking business model to win in a digital world.
Fintech apps have a promising future. Technology trends in AI, AR, and #IoT can take fintech #app development to a new level. Here are some of the top trends you need to know.
"The ASEAN FinTech Census is a research initiative undertaken by EY to understand the key factors shaping FinTech and to bring to the forefront the voice of 251 FinTechs
highlighting key areas of growth, opportunities and potential challenges and an analysis of FinTech’s responses on revenue growth, capital requirements, regulatory support, operating environment and plans for future expansion."
Digital challenger banks are simplifying the financial world, creating a customer centric approach to services, and transforming the way banking is viewed by the public and the market
The journey from open banking to open finance+. The evolution of open banking based on API as of now and where it could go from here. Risks and opportunities for market participants.
Varun Mittal, Partner of EY Asia Pacific Financial Services Strategy and Transaction Services, talks about all things FinTech. We begin by going over the tech foundation that has been built up over the past decade, which is now enabling a wave of innovation. Varun scans both the start-ups and big tech companies, and details his views on payments, wallets, remittance, regulation, WealthTech, e-currency, and digital banks. We discuss the role of FinTech in levelling the playing field between the wealthy and not-so-wealthy investors, and between those who have access to banking services and those who don’t. As the co-author of "Singapore – Fintech Nation of the World,” Varun is particularly passionate about Singapore’s model of strict compliance and risk mitigation, which he believes is particularly suited for success in the regulated world of FinTech.
World Payments Report 2014 Key Findings PresentationCapgemini
Ten years after publishing the first World Payments Report, Capgemini and RBS continue to provide insight into global and regional non-cash payment trends. In this presentation from the World Payments Report 2014, we explore what is driving payments growth, the increasing overlap of key regulatory and industry initiatives, the increased cascade effect, and innovation and transformation in payments processing. Visit www.worldpaymentsreport.com for more information.
Financial Technology: Insights into an Exploding IndustryCory Brooks
Financial Technology will dramatically change your life; it may have already. This powerpoint gives the market overview FinTech as well as sector overviews concerning digital payments, online lending, and InsurTech.
In this presentation we look at the big trends likely to be seen in 2015 for retail banking. Will banks' obsession with customer centricity and user experience heighten? Will digital-only banks proliferate? We explore this and more...
2016 predicted to be breakout year for blockchain technology in corporate banking
New research from Mercator Advisory Group examines activity in blockchain technology and use cases for corporate banking expected to be piloted in 2016
Pay Master App is the mobile recharging and payments app in Sri Lanka. As part of their growth plan, this is the seed+ raise they have requested from possible investors. Paymaster is a fully owned subsidiary of FirstPay Pte Ltd
The Philippines’ fintech ecosystem is brimming with innovation with a vibrant mix of entrepreneurs attempting to fill in the gap within the financial system. Despite the strides that the country has made in this space, the Philippines’ narrative has often been overlooked by international media when examining financial innovations within South East Asia.
I was commissioned by Fintechnews Network to create this report, from research to layout.
For more service like this, reach me at LinkedIn@jocelyn18 or jocelyncy@gmail.com. Thanks!
FinTech outlook for 2017 report discussing trends, opportunities and challengesMEDICI admin
The report is intended for readers who want to better understand the dramatic changes that have begun to take place—and that are accelerating—in the global FinTech landscape. The payments industry, which is one of the focus areas of this report, has never been more exciting.
The report starts with the current state of FinTech and then provides an analysis of major emerging technologies and market forces that are shaping the FinTech market for 2017. It discusses the major opportunities and challenges faced by incumbents as well as FinTech startups. The report also provides a brief on the geographic split of payments volume, revenue and how they are expected to shift gradually by 2024.
Everyday Bank: A Journey to Digital TransformationBackbase
Accenture’s Senior Managing Director, Juan Pedro Moreno, shares the firm’s vision for banks in the digital age. During this free, one hour long webinar, Juan Pedro will highlight:
- How customer behavior has shaped a digital revolution for banks,
- How technology is blurring the boundaries that define customer service, and
- What threats and opportunities this emerging digital landscape presents for banks.
- Last but not least, he will go into the specific steps banks must take in order to become a successful Everyday Bank.
"Banks face a growing challenge from non-bank entities that are aggressively using digital innovations to take on functions traditionally part of banking. Think Amazon, which now offers loans to its merchants. Or the giant Alibaba, now the world’s largest payment provider. But banks have a huge competitive advantage in this digital world. With their vast digital data, payment know-how and deep understanding of compliance, security and financing, they are positioned to become an Everyday Bank, providing an unparalleled personalized customer experience that cannot be replicated by non-banks."
-- The Everyday Bank, Accenture.
Why Banks Must Become Smart Aggregators in the Financial Services Digital Eco...Cognizant
Financial institutions must embrace a partnership-driven approach to remain relevant amid fintech digital disruption, while evolving their capabilities to deliver against tomorrow’s market needs.
Building a truly digital banking model remains a challenge for most domestic banks. While it’s true that there is no such thing as a sure recipe for success, some key ingredients are essential to a successful digitized bank. They are the SIX imperatives of digital banking that we will discuss in this whitepaper.
Beyond Banking: New Business Models for the Digital EraJessica Wilkinson
The banking and financial services industry is undergoing a period of unprecedented disruption, which is re-shaping the competitive landscape.
Criterium Group believes we’re experiencing a fundamental change in how people manage, save and spend their money –which means banks and credit unions will need to re-imagine how they deliver value to customers and members.
We’re experiencing a disintegration of the financial industry. But disruption is exciting, not scary. As our relationship with money evolves, there are endless opportunities to delight customers and deliver value. However, competing in a digital age takes a completely different approach.
Criterium Group has considered the changing landscape from a competitive, financial, technological and operational perspective to re-design the traditional banking business model to win in a digital world.
Fintech apps have a promising future. Technology trends in AI, AR, and #IoT can take fintech #app development to a new level. Here are some of the top trends you need to know.
"The ASEAN FinTech Census is a research initiative undertaken by EY to understand the key factors shaping FinTech and to bring to the forefront the voice of 251 FinTechs
highlighting key areas of growth, opportunities and potential challenges and an analysis of FinTech’s responses on revenue growth, capital requirements, regulatory support, operating environment and plans for future expansion."
Digital challenger banks are simplifying the financial world, creating a customer centric approach to services, and transforming the way banking is viewed by the public and the market
The journey from open banking to open finance+. The evolution of open banking based on API as of now and where it could go from here. Risks and opportunities for market participants.
Varun Mittal, Partner of EY Asia Pacific Financial Services Strategy and Transaction Services, talks about all things FinTech. We begin by going over the tech foundation that has been built up over the past decade, which is now enabling a wave of innovation. Varun scans both the start-ups and big tech companies, and details his views on payments, wallets, remittance, regulation, WealthTech, e-currency, and digital banks. We discuss the role of FinTech in levelling the playing field between the wealthy and not-so-wealthy investors, and between those who have access to banking services and those who don’t. As the co-author of "Singapore – Fintech Nation of the World,” Varun is particularly passionate about Singapore’s model of strict compliance and risk mitigation, which he believes is particularly suited for success in the regulated world of FinTech.
World Payments Report 2014 Key Findings PresentationCapgemini
Ten years after publishing the first World Payments Report, Capgemini and RBS continue to provide insight into global and regional non-cash payment trends. In this presentation from the World Payments Report 2014, we explore what is driving payments growth, the increasing overlap of key regulatory and industry initiatives, the increased cascade effect, and innovation and transformation in payments processing. Visit www.worldpaymentsreport.com for more information.
Financial Technology: Insights into an Exploding IndustryCory Brooks
Financial Technology will dramatically change your life; it may have already. This powerpoint gives the market overview FinTech as well as sector overviews concerning digital payments, online lending, and InsurTech.
In this presentation we look at the big trends likely to be seen in 2015 for retail banking. Will banks' obsession with customer centricity and user experience heighten? Will digital-only banks proliferate? We explore this and more...
2016 predicted to be breakout year for blockchain technology in corporate banking
New research from Mercator Advisory Group examines activity in blockchain technology and use cases for corporate banking expected to be piloted in 2016
Pay Master App is the mobile recharging and payments app in Sri Lanka. As part of their growth plan, this is the seed+ raise they have requested from possible investors. Paymaster is a fully owned subsidiary of FirstPay Pte Ltd
The Philippines’ fintech ecosystem is brimming with innovation with a vibrant mix of entrepreneurs attempting to fill in the gap within the financial system. Despite the strides that the country has made in this space, the Philippines’ narrative has often been overlooked by international media when examining financial innovations within South East Asia.
I was commissioned by Fintechnews Network to create this report, from research to layout.
For more service like this, reach me at LinkedIn@jocelyn18 or jocelyncy@gmail.com. Thanks!
FinTech outlook for 2017 report discussing trends, opportunities and challengesMEDICI admin
The report is intended for readers who want to better understand the dramatic changes that have begun to take place—and that are accelerating—in the global FinTech landscape. The payments industry, which is one of the focus areas of this report, has never been more exciting.
The report starts with the current state of FinTech and then provides an analysis of major emerging technologies and market forces that are shaping the FinTech market for 2017. It discusses the major opportunities and challenges faced by incumbents as well as FinTech startups. The report also provides a brief on the geographic split of payments volume, revenue and how they are expected to shift gradually by 2024.
Everyday Bank: A Journey to Digital TransformationBackbase
Accenture’s Senior Managing Director, Juan Pedro Moreno, shares the firm’s vision for banks in the digital age. During this free, one hour long webinar, Juan Pedro will highlight:
- How customer behavior has shaped a digital revolution for banks,
- How technology is blurring the boundaries that define customer service, and
- What threats and opportunities this emerging digital landscape presents for banks.
- Last but not least, he will go into the specific steps banks must take in order to become a successful Everyday Bank.
"Banks face a growing challenge from non-bank entities that are aggressively using digital innovations to take on functions traditionally part of banking. Think Amazon, which now offers loans to its merchants. Or the giant Alibaba, now the world’s largest payment provider. But banks have a huge competitive advantage in this digital world. With their vast digital data, payment know-how and deep understanding of compliance, security and financing, they are positioned to become an Everyday Bank, providing an unparalleled personalized customer experience that cannot be replicated by non-banks."
-- The Everyday Bank, Accenture.
Why Banks Must Become Smart Aggregators in the Financial Services Digital Eco...Cognizant
Financial institutions must embrace a partnership-driven approach to remain relevant amid fintech digital disruption, while evolving their capabilities to deliver against tomorrow’s market needs.
Building a truly digital banking model remains a challenge for most domestic banks. While it’s true that there is no such thing as a sure recipe for success, some key ingredients are essential to a successful digitized bank. They are the SIX imperatives of digital banking that we will discuss in this whitepaper.
Case study: DBS's digitalization in Southeast AsiaSahil Gupta
DBS Bank‘s internationalization strategy is built on the cornerstone of a customer-centric digital platform which goes beyond banking by focusing on the customer’s lifestyle and evolving needs. EY has been a proud collaborator to DBS in this journey, advising on the formulation of strategy for Indonesia.
Case study: DBS's digitalization in Southeast AsiaVarun Mittal
DBS Bank‘s internationalization strategy is built on the cornerstone of a customer-centric digital platform which goes beyond banking by focusing on the customer’s lifestyle and evolving needs. EY has been a proud collaborator to DBS in this journey, advising on the formulation of strategy for Indonesia.
Digital intervention is a reality in today’s banking business and banks need to adapt and respond to this change to stay ahead of competition. The digital foreground has presented banks with a huge opportunity to attract new customers, lower costs, develop new propositions and business models, as also explore customer value to its maximum. To create a digital environment is now a priority for all banks and they need to undergo considerable investment for complete transformation.
The CII-PwC report titled, Banks taking a quantum leap through digital, released at CII National BANKing TECH Summit by Mr H R Khan Dy Governor RBI, Mr A P Hota MD& CEO National Payments Corporation of India and M S RaghavanChairman & MD, IDBI Bank.
The world of financial services is changing dramatically and winning in this new market will require players, particularly the existing ones, to unlearn and relearn the ground rules. The entry of new players, many of who will be challengers and disruptors, are likely to push this market to higher levels of competition. Market participants will be forced to focus on specialisation and differentiation in order to respond to an extremely diverse market.
The CII-PwC report “Rethinking distribution: Smart solutions for smart customers” lays out four overarching growth drivers, which are providing an impetus to change in the delivery and consumption of financial services, demographic factors, technology changes, regulation and the entry of a substantial number of new, differentiated banks.
apidays LIVE Hong Kong - Digital Banking Survey in HK and How it Relates to O...apidays
apidays LIVE Hong Kong - The Open API Economy: Finance-as-a-Service & API Ecosystems
Digital Banking Survey in HK and How it Relates to Open Banking
Barry Chan, Partner, FSS, GBS at IBM Hong Kong
Digital Banking: Enhancing Customer Experience; Generating Long-Term Loyalty ...Cognizant
To stay profitable and grow in the new digital economy, banks need to adopt a customer-centric business model, diversify online delivery of products and services channels and begin making meaning from valuable trails of digital information.
The gROWING IMPORTANCE OF BANK AND FINTECH PARTNERSHIP.pdfKissht reviews
Banks know already that Kissht Chinese are all rumours and gossip and that platforms like Kissht can be their best strategic partners to embrace a focus on agility and developing an innovative mindset.
The gROWING IMPORTANCE OF BANK AND FINTECH PARTNERSHIP.pptxKissht reviews
Banks know already that Kissht Chinese are all rumours and gossip and that platforms like Kissht can be their best strategic partners to embrace a focus on agility and developing an innovative mindset.
Asian insurance, pensions, and wealth management undergo rapid change, what a...Varun Mittal
What are the key trends changing the insurance, pensions, and wealth management industries in Asia?
And how can companies best capture growth?
These topics were among those discussed at the recent Singapore FinTech Festival (SFF). Since its
inception in 2016, SFF has become the premier platform for the global fintech community to engage,
connect, and collaborate on issues relating to the confluence of financial services, public policy, and
technology. SFF attracted 62,000 participants from over 115 countries—the largest SFF gathering ever.
It featured 850 speakers, 570 exhibitors, including 25 country pavilions, and over 4,000 meeting
through the business matching platform.
With inflation persisting and growth slowing, many fintech firms are trying to remain viable. With that
background, three key themes emerged at SFF that hold opportunities for insurance companies in Asia.
First, we discussed how risks for the current generation have changed, creating new paths of growth
as technology spreads across all sectors and functions in the insurance industry. The changing
behavior of consumers triggers new opportunities by demanding unconventional ways of redefining
customer relationships.
Second, a widening pension gap caused by an aging population, the rise of self-employment, and the
gig economy offers opportunities. We foresee that people caught in this gap could succumb to further
risks raised by rising inflation, longer lifespans, and the rising cost of healthcare. Further, we discussed
micro-pensions and micro-investments and how they would take off in the coming years.
Third, Asia’s financial wealth stands at $180.6 trillion as of 2021, or roughly 40% of global wealth, and
we expect continued growth. This causes more customers to get serious about financial planning. We
also discussed approaches to reaching Generation Y and Z customers who require an omnichannel
experience to maintain high engagement.
We also had pragmatic discussions around artificial intelligence (AI) and embedded insurance. AI is still
nascent, with regulators constantly figuring out how AI and machine learning play a role in insurance.
Embedded insurance, meanwhile, needs to work seamlessly in the customer journey.
This report covers the three main megatrends to watch in the landscape of Asia’s life and health insurance,
as well as the key imperatives insurers should take to capture the significant opportunities in the market.
Southeast Asia (SEA) is one of the most dynamic regions for FinTech globally. Driven by budding economies, expanding populations, rapid ecommerce penetration, and a growing middle class, FinTech investments across the 10 ASEAN nations reached US$4.3billion (S$5.7billion) during the first nine months of 2022, higher than 2018 to 2020 combined. According to Pitchbook data, the number of FinTech deals in SEA grew over 4x between 2015 to 2022 (from 56 to 225), reaching a record high in 2021, while the number of VC and PE-backed FinTech companies in the region saw similar growth.
Despite a slowdown in H1 2023, FinTech will remain a key engine of growth for SEA, and therefore a key hub for talent. Given the high levels of investment in FinTech, private capital has an outsized ability to influence the status quo in Southeast Asia. If VCs were to increase diversity, equity and inclusion (DEI) across their portfolio, they could greatly impact the way businesses are led and managed in the region. Additionally, research has shown that diversity leads to better investment outcomes, with a recent study in Europe showing that VC funds managed by mixed-gender teams reported a higher annual internal rate of return (IRR), and in particular, teams predominantly composed of women outperformed all-male teams by a notable 9.3 percentage points. Further, mandates and scrutiny around DEI has increased in recent years, with institutional investors and other limited partners (LPs) beginning to bring DEI criteria into their thinking as they allocate funds to general partners (GPs). This reinforces the importance of understanding the industry’s current talent composition, both at the startup as well as at the investor level, and exploring ways the industry can enhance diversity moving forward.
Combining quantitative data with interviews from several leading women founders and investors in the region, Russell Reynolds Associates partnered with the Singapore FinTech Association and FinTech Nation to develop a better understanding of the current state of gender diversity within SEA’s FinTech startup ecosystem, and to highlight challenges, opportunities, and recommendations for the path forward.
State of play: gender diversity across SEA FinTech landscape
Looking across funding stages and role types, from early stage to late stage to public companies, from management to board to even investors, women are heavily underrepresented within the SEA FinTech ecosystem. Across almost 2000 executives in management, board, and investor roles, only 252 are women (13%). It is worth noting that this is in line with broader SEA, across all VC-backed companies in the region (regardless of sector), women account for roughly 14% of management, board, and lead investors.
The Index measures the degree to which individuals in Singapore feel financially free and is the result of a comprehensive consumer survey. Between December 2022 and January 2023, we engaged 3,000 Singaporeans and Permanent Residents aged between 18 and 65, representing diverse income levels and life stages.
Financial Freedom Index - Platform WorkersVarun Mittal
Launched Financial Freedom Index - Platform Workers researching 500 platform workers and key platforms like Grab, Gojek, Deliveroo, and Foodpanda bringing their opinions, insights, and recommendations to support platform and gig workers achieve better financial inclusion.
Fe credit case study - How one of the first non-bank financial credit compani...Varun Mittal
Empowered FE Credit, one of Vietnam's oldest and largest consumer credit companies as well as other FinTech partners to implement a robo-lending platform app, $NAP, which digitalizes the entire process of customer on-boarding, loan application, know-your-customer (KYC), credit underwriting, loan approval and disbursement. With this platform application, FE Credit has been able to shorten the borrowing process from 4-5 days to less than 15 minutes, drastically increasing its appeal to customers and overcoming the challenges inherent in the traditional lending model.
Digital bad debts collection platform using machine learningVarun Mittal
Transforming bad debts collection processes with machine-learning software that analyzes digital footprint of customers, which allows collection processes to be ranked meaningfully, in turn increasing efficiency of collection and identification of defaulters.
Leveraging AI for data analytics and retrievalVarun Mittal
Optimizing credit scoring processes for the unbanked through an alternative credit scoring solution that integrates artificial intelligence and big data analytics to generate holistic creditworthiness assessment, allowing financial institutions to make more informed decisions regarding loan disbursements to customers with little to no credit file.
Improving financial crime compliance (FCC) review processes with a machine-learning solution that effectively increases productivity and the use of unstructured data, reduces human error and risks of fines related to compliance, and lowers average on-boarding period for compliance systems.
Enabling identify authentication through machine-learning, resulting in reduced operations costs and time taken to detect suspicious behaviors, increased security and customer satisfaction.
Automating data processing and manual documentation of information so as to increase overall data processing speed, security and productivity by leveraging on a scalable and automated data integration software.
How EY and Credit Suisse teams brought growth opportunities to future leaders...Varun Mittal
EY and Credit Suisse teams co-hosted the CS-EY FinTech Forum. The forum attracted over 90 participants from top financial institutions in Bangkok, Jakarta, Kuala Lumpur, Manila, Melbourne, Mumbai and Singapore, as well as 25 FinTech firms with headquarters in Singapore, Indonesia and India. EY teams are committed to work with industry participants to help bring about greater FinTech integration to countries in ASEAN-6 and India.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
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effectively manage the convert Accpac to QuickBooks , with a particular focus on utilizing online accounting services to streamline the process.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Attending a job Interview for B1 and B2 Englsih learnersErika906060
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Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Impact of Digital Banks on Incumbents in Singapore
1. 1
Impact of digital banks on incumbents
Impact of digital
banks on incumbents
Need for banks to re-evaluate their
business model and customer
retention strategies
January 2020
2. Impact of digital banks on incumbents
2
Authors:
Varun Mittal
EY Global Emerging Markets
FinTech Leader
Ernst & Young Solutions LLP.
Neena Antal
Director, Digital
Ernst & Young Advisory Pte. Ltd.
Akshay Tatke
Manager, Strategy & Operations
EY Corporate Advisors Pte. Ltd.
Impact of digital banks on incumbents
2
3. 3
Impact of digital banks on incumbents
About this report
Contents page
Incumbents have to act now in order to be prepared for the digital
bank launch in Singapore by 2021. The New Digital Banks (NDBs)
aim to launch customer-centric, differentiated products to meet
their lifestyle goals along with simple and superior user experience.
The new age customers expect transparency and frictionless
experience from their banks.
The incumbent banks should leverage the trust and relationship
built with their customers over the years. They should re-evaluate
their strategy, invest in understanding customers’ needs and enable
a digital experience that is at par with leading technology players
in the market. Incumbents should take timely action by choosing
a viable option to position their business ahead of competition
and disruption!
1
Digital banking landscape in Asia-Pacific
2
Digital banking landscape in Singapore
3
Key focus areas of the NDBs
4
Impact on the existing customer base of incumbents
4
6
8
12
4. Impact of digital banks on incumbents
4
Regulators are driving competition through new
digital banking licenses and framework in the region.
The digital banking landscape in Asia-Pacific (APAC) has seen major
advancements since 2015. The regulators in the region have been
opening up financial services markets to non-financial institutions
(FIs) as well. The aim is to create new digital banks (NDBs) with
innovative models and solutions to meet the customer demands and
cater to the underserved segments.
Impact of digital banks on incumbents
Korea Financial
Services Commission
accepted applications
in 2015, and by 2017,
the first batch of
NDBs in Korea were
launched
Taiwan Financial
Supervisory
Commission granted
three digital banking
licenses in 2019,
which will be launched
in 2020
Monetary Authority
of Singapore (MAS)
accepted applications
in December 2019, to
grant second full and
three wholesale bank
licenses in 2020
Hong Kong Monetary
Authority accepted
applications in 2018,
issued eight licenses and
by December 2019, the
first NDBs in Hong Kong,
“ZA” was launched
Bank Negara Malaysia
released the Expectation
Draft in December 2019,
to accept digital banking
applications by end
of 2020
Digital banking landscape in Asia-Pacific
4
5. 5
Impact of digital banks on incumbents
The NDBs are fundamentally different from the incumbents across their business and operating models.
They are more customer-centric and focus on delivering state-of-the-art features to engage and retain them.
To compete in this dynamic and demanding environment, incumbent banks need to think differently
about their business and operating models to “keep the lights on”, while also transforming and innovating
at speed.
Furthermore, regulators have been supporting innovation and trying to be a part of the change rather than
disrupting it. They have been putting in stringent customer security measures as well to ensure that above
all, customers are protected. We predict that the presence of digital banks is set to grow with the support
from regulators in the region.
1. In this paper, the digital bank licenses granted by the regulators will be referred as New Digital Banks or NDBs
NDB: key features
Business model
Operating model
Technology
Talent
1. Target micro-segments
2. World-class customer experience
3. Simple products, pricing and transparency
4. High degree of personalization
5. Embed in daily life of target segments
1. No or limited branch network
2. Design process for “no ops”
3. Aim to achieve low 30s cost-income ratio
4. Mobile-only, virtual or robo-led servicing
5. Leverage non traditional data for credit assessment
1. Configurable core banking
2. Built on today’s leading technology practices
3. High leverage of cloud and open application program interface (API)
4. High leverage of artificial intelligence and machine learning
5. High degree of automation
1. High proportion of engineers and design professionals
2. Multi-disciplinary teams working together
3. Flat, non-hierarchical structures
4. Employee value proposition for entrepreneurs and millennials
5. Values or purpose-focused
6. Impact of digital banks on incumbents
6
Competition in the market is heating up with the
issuance of up to five digital bank licenses by MAS
in 2020.
On 7 January 2020, MAS announced that a total of 7 and 14
applicants will be competing for the full bank and wholesale bank
license respectively. The five NDB licenses, in addition to the
internet banking framework introduced in 2000, will create a
digitally enabled ecosystem. The NDBs are expected to:
1. Promote innovative business models and develop strong digital
capabilities
2. Enhance the resilience, competitiveness and vibrancy of the
banking sector
3. Add diversity and strengthen Singapore’s banking system
4. Increase distribution of banking services to the underserved
segments of the market
Impact of digital banks on incumbents
Digital banking landscape in Singapore
6
7. 7
Impact of digital banks on incumbents
Slowdown in economic growth puts pressure on margins
With overall Singapore gross domestic product (GDP) growth rate slowing down in 2019 and loan growth
rate reducing to 0.5% against 3% in 2018, incumbent banks are expected to struggle with maintaining
profit margins and lowering cost-income ratios. Technology players are offering cutting-edge and fast
services to the current customer base in Singapore that is digitally mature and tuned in to the digital
ecosystem to get more value for their money. The competition between NDBs, technology players and
incumbent banks to get a larger share of this overbanked customer’s wallet will heat up the market in
coming years.
Source : Euromonitor and FITCH
Solutions Macro Research 2019
5.6%
3.0%
0.5%
20182017 2019
Singapore banking
sector sees a declining
year-on-year loan growth
rate, indicating a need
for innovative products
or alternate data to
access credit worthiness
of current customer base
8. Impact of digital banks on incumbents
8
NDBs will leverage on the distribution network, data
richness and brand awareness of the consortium
members to create unique propositions.
Most NDB applicants already have a huge customer base and are
a part of the customer’s day-to-day life. They have no legacy in
terms of technology, operations and products that would limit their
product proposition and speed to market. The NDBs will fill in the
void that incumbents have left open by not responding fast enough
to meet the digital experience needs of the customers.
The different digital bank players bring one of the following three
differentiators to the table that could give the NDBs an edge over
the incumbents.
Access to large customer base with multiple touch
points on a daily basis passing the toothbrush test
Data on multiple touch points during the day and
leveraging it to create personalized propositions
Strong brand awareness in the market, with a
base of loyal customers open to try the new digital
banking products
Impact of digital banks on incumbents
Key focus areas of the NDBs
Distribution
Data
Awareness
8
9. 9
Impact of digital banks on incumbents
The NDBs are aiming to create new value propositions by focusing on selected
customer segments, offering differentiated products supported by the latest
technology, to offer great user experience to entice the customers.
• Initial focus in serving
underserved segments
• Gradually shift scope to
cover the “massive middle”
• Offer new and innovative banking
products
• Developing new technology
capabilties and methodologies to
offer products in a new way
• Differentiated and seamless
banking experience
• Building an extensive
ecosystem to provide
non-banking services
Customer
segments
Customer
products
Customer
experience
Customer segments: serving the traditionally underserved segments
The NDBs will focus on targeting the underserved retail and wholesale sub-segments through the effective
use of technologies. Over time, they will broaden their scope towards the “high-value pool” segments, which
are reasonably well served by the incumbent banks.
Retail Wholesale
3. Micro SMEs refer to corporates that has an annual revenue of less than S$1 million and/or with less than 10 employees
• Over 200,000 individuals taking up
short-term or event-based work
• Traditionally ineligible for
credit, and lack personalized
insurance coverage
• Over 1 million digitally native
young millennials, heavily
influenced by lifestyle platforms
• Expect a banking experience that
is truly differentiated
• Potentially 100,000 young
businesses that lack financial
history and track record
• Require digital management tools
due to lack of resources
• 120,000 businesses that may
not possess assets for collateral
• High frequency, low volume
transactions often cause short
term credit challenges
Gig economy
participants
Digital
natives
Young
MSMEs3
Asset light
SMEs
10. Impact of digital banks on incumbents
10
Customer products: differentiation aimed at solving key pain points4
Products offered by the NDBs s are expected to be more innovative, following in the footsteps of successful
global case studies. These products will be tailored to address current customer pain points. The new banks
will aim to become a one-stop shop for lifestyle or business needs of their target segments.
Customer experience: legacy-free, new age banking experience4
The NDBs will launch world-class user experience at the get-go to onboard and engage customers.
Cutting-edge technology is expected to be embedded across banking processes, whether customer facing or
at the back-end. The banking stack will be more reliable, available, secure and seamless, acting as a day-to-
day platform for both retail and SME customers.
4. Above products and customer experience features are representation of key area that NDBs will play in and is not complete
nor exhaustive.
5. EY analysis on revenue pools for various products in Singapore market
• Revenue pool of
approximately S$11b5
• Alternative credit underwriting
for wider eligibility, faster
approvals, cheaper credit
• Personalized and secure cards
linked to customer lifestyles
• Revenue pool of
approximately S$3b
• Simple one-click micro
investments, removal of
minimum investment barriers
• Digital financial advice with real-
time investment alerts
• Revenue pool of S$186m
• One-stop market place with an
extensive network of merchants,
incentives and deals
• Flexible payment terms
leveraging technology
• Revenue pool of S$5.9b
• Bite-sized affordable insurance
premiums and premium-based
packages to attract millennials
• Event driven coverage and
pricing for enhanced relevance
Lending and
cards
Payments
Investments Insurance
• Personalized offerings
• Profile and situation-specific
• Right place and at the right time
• Frequent interactions
with customers
• Increased touchpoints,
incentivizing customers to login
• Goal-oriented savings and offers
• Digitally-enabled advisory
• Meeting customers’
non-financial needs
• Frequent interactions
with customers
• Increased touchpoints,
incentivizing customers to login
Personalized
and
contextual
Delightful
Lifestyle
based
Engaging
11. 11
Impact of digital banks on incumbents
11
We see an emerging trend of ‘FinLife’, the coming together of
financial services and lifestyle to enable seamless customer
experience and innovative financial products.
“
Varun Mittal
EY Global Emerging Markets FinTech Leader
12. Impact of digital banks on incumbents
12
The new age banking customer is deeply influenced
by the engaging user experience offered by digital
platforms that have woven themselves seamlessly in
their lifestyles.
Today’s customers expect their financial services providers to offer
a similar digital experience like those offered by lifestyle platforms.
These customers are dynamic in their quest to select the right
platforms that serve them personally, and are open to switching
to platforms that offer a better overall user experience. They seek
personalized recommendations, offers and financial advice to
ensure maximum savings and more value for their dollar. As a result,
they expect their financial products to be embedded as part of the
daily lifestyles.
Impact of digital banks on incumbents
Impact on the existing customer base of the
12
Fulfilling these new-age customer demands is exactly how the NDBs expect to win market share in the
competitive banking landscape of Singapore. There will be an impact on the existing customer base of the
incumbents, and some customers will move with their money and relationships to NDBs.
13. 13
Impact of digital banks on incumbents
NDB foray matrix
Banks’ propensity to earn revenue
High
Low High
CustomerSatisfaction
3
1
4
2
incumbents
Characteristics 1. Indifferent 2. Flight-risk
3. Happy
minimalist
4. Profitable
loyalist
Usage of banking
services
Free basic services
such as savings
account
Longer term
products such as
mortgages
Transactional
services and
rewards
Consider bank as
one-stop financial
shop
Engagement with
bank
Rarely interact Interact at time of
need
Frequent
interaction
Deeply engaged as
part of day-to-day
life
Stickiness Low Medium Medium High
Potential hook Financial advice
with lifestyle
linked products
Personalized
services like wealth
Attractive offers
on low margin
products
Simple and user
friendly digital
products
The new crop of digital banks aim to fulfil these
customer expectations by building a legacy-free,
slick user experience on both online and offline
fronts, and gradually increasing their market share
at a faster pace than the incumbent banks.
The NDB foray matrix below depicts the incumbent
bank’s existing customer segments that are likely to
move to the NDBs, in addition to the underserved
customers of the market. The segmenting
approach is based on two key parameters:
a) customer satisfaction or happiness, and
b) the amount of revenue the banks can earn from
the customers.
14. Impact of digital banks on incumbents
14
To penetrate into incumbents’ customer base, NDBs will rely on a combination of differentiated products and
the customers’ likeliness of using these products in comparison to its traditional alternative.
Customer-product mobility matrix
Customer’s propensity to switch
High
Low High
Potentialtodifferentiate
14
11
8
3
47
5
13
9
10
Illustrative products
1. Savings accounts 8. Payments
2. Deposits 9. Forex
3. Micro loans 10. Insurance
4. Term loans 11. Wealth and investments
5. Mortgages 12. Treasury management
6. Overdrafts 13. Advisory services
7. Credit and advances 14. Value added services
1
2
6
12
The NDBs are expected to focus on products that lie close to the fourth quadrant, offering maximum
differentiation through innovation, while also enticing customers to switch from incumbent banks. Whereas,
products in the first quadrant will see less innovation, proving to be more challenging to excite customers to
switch from their primary banks in the initial years.
Existing banks have been acting as the primary bank for their customers for many years and have built a
strong brand that their customers can trust with their money and financial needs. The NDBs will have to
offer differentiated products and be agile in the coming years to win the trust of the customers.
According to a recent survey, its quite evident that up to 70% of the young banking customers are open to
try products and services offered by NDBs.6
This puts the incumbents at a juncture where they would need
to devise strategies to increase the stickiness of their customer base by offering innovative and personalized
solutions, along with managing the profitability and margin pressure. Status-quo might not be an option any
more!
6. Source: J.D. Power 2019 Singapore Retail Banking Satisfaction Study
15. 15
Impact of digital banks on incumbents
Incumbents have to take action now, given that doing nothing is not a viable
option anymore.
There are multiple options that incumbent banks can choose from and formalize their strategy to compete
with the NDBs and increase the top-line. Below are the four main approaches that banks can take to protect
and increase their customer base in the current market.
Incumbent banks have a short time frame to realign their strategy and focus on
execution to compete with digital banks.
MAS aims to award the digital bank licenses by June 2020 and the NDBs should most likely be operational
by Q2 in 2021. This gives the incumbent banks a limited time frame to design and implement their
strategic plans in next 12 to 18 months. The banks should take advantage of their existing customer
database to deepen the current relationship by meeting their expectations, and respond to their needs in a
speedy manner.
Defensive and targeted offering to protect their price, product
and segments
Implementationeffort
Easy
Complex
Create new digital front-end channel, but most of the
operations and technology remain similar as current
Create a digital-only offering by acquiring or partnering with
firms to deliver innovative solutions
Create a digital-only bank with current license with separate
operations, technology stack and potentially brand
Targeted digital
offering
Create new digital
front-end
Grow in-organically or
partner
Launch NDB using
existing license
1
2
3
4
Identify areas
of impact or
growth
Create new
strategic options
to defend and
expand
Build and
roll out
12–18 months
16. Impact of digital banks on incumbents
16
Impact of digital banks on incumbents
Contact us
Nam Soon Liew
EY Asean Regional Managing Partner
Ernst & Young Advisory Pte. Ltd.
nam-soon.liew@sg.ey.com
Brian Thung
EY Asean Financial Services Leader
Ernst & Young LLP
brian.thung@sg.ey.com
Anshuman Singh
EY Asia-Pacific Financial Services
Digital Leader
Ernst & Young Advisory Pte. Ltd.
anshuman.singh@sg.ey.com
16
17. 17
Impact of digital banks on incumbents
Chris Lim
Partner
Advisory – Risk and Regulatory
Ernst & Young Advisory Pte. Ltd.
chris.lim@sg.ey.com
Neena Antal
Director, Digital
Financial Services
Ernst & Young Advisory Pte. Ltd.
neena.antal@sg.ey.com
Stuart Last
EY Asean Financial Services
Transaction Advisory Services Leader
EY Corporate Advisors Pte. Ltd.
stuart.last@sg.ey.com
Varun Mittal
EY Global Emerging Markets
FinTech Leader
Ernst & Young Solutions LLP
varun.mittal@sg.ey.com
Li Yun Seah
Partner
Financial Services
Ernst & Young LLP
li-yun.seah@sg.ey.com