\n<\/p>\n
\n By Dev Dhiman, Managing Director of GBG Asia Pacific <\/p>\n
SINGAPORE –\u00a0Media OutReach<\/a>\u00a0–\u00a028 January 2021 –\u00a0<\/b>2020 catapulted financial institutions forward in their
When looking ahead at how financial institutions (FIs)
1. COVID-19 drove a dichotomy in fraud technology
There is a distinct difference in investment between
For countries that have yet to enter into a stable
For FIs in Asia Pacific emerging from or preparing to emerge from
2. Digital customer experience expectations will
\u00a0<\/p>\n
Global ecommerce powerhouses like Alibaba and Amazon
In 2021, the industry is already seeing FIs and fintechs race to
3. Cross-vertical collaboration and consumer data
\u00a0<\/p>\n
Collaborations amongst major enterprises in the digital banking
Looking at 2021 and beyond, this collaborative mindset is likely to
FIs have already reinvented partnerships to form new market
4. Expanding availability of shorter-term credit
\u00a0<\/p>\n
The rise of Buy Now, Pay Later (BNPL) businesses has
FIs need to remain vigilant in how BNPL products are
5. Mobile-first technology and data intelligence as
\u00a0<\/p>\n
Mobile devices are widely used to accelerate the
Today, mobile devices do more than enabling the
Mobile metadata, device usage patterns and SIM card
\u00a0<\/p>\n
6. Socially engineered first party fraud and
\u00a0<\/p>\n
Bringing together the above trends and predictions, the combination
Consequently, socially engineered first party fraud,
Organisations will need to reflect their commitments
By Dev Dhiman, Managing Director of GBG Asia Pacific SINGAPORE –\u00a0Media OutReach\u00a0–\u00a028 January 2021 –\u00a02020 catapulted financial institutions forward in their
implementation and optimisation of technology. According to 71%
of Asia Pacific (APAC) technology decision-makers the pandemic has caused
their organisations to step up digital transformation, while 70%
of financial services organisations in APAC \u00a0believe …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[60],"tags":[],"_links":{"self":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/11647"}],"collection":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/comments?post=11647"}],"version-history":[{"count":0,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/11647\/revisions"}],"wp:attachment":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media?parent=11647"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/categories?post=11647"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/tags?post=11647"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nimplementation and optimisation of technology. According to 71%
\nof Asia Pacific (APAC) technology decision-makers<\/a> the pandemic has caused
\ntheir organisations to step up digital transformation, while 70%
\nof financial services organisations in APAC<\/a> \u00a0believe innovation is now a “must”, reflecting
\nthe impact of COVID-19 in shifting consumers and businesses to being digital-first.<\/p>\n
\n
<\/p>\n
\nwill be impacted by these trends in 2021, there are six key ways in which FIs
\nare expected to evolve.<\/p>\n
\n
<\/p>\n
\ninvestment<\/b><\/p>\n
\n
<\/p>\n
\nFIs in countries still heavily impacted by COVID-19, and those in the stages of
\nemerging from the pandemic.<\/p>\n
\n
<\/p>\n
\nrecovery period, FIs will be making a more conservative approach to overall investment
\nand sustaining cashflow, but deprioritising investments in fraud technology
\ncould leave them unprepared for the potential rise in financial crime and fraud
\nduring financial hardship. FIs in Indonesia, Malaysia, Thailand, and the
\nPhilippines, which are seeing reinstatement or continued lockdowns in the
\ncountry, may become even more hard-pressed for stronger fraud prevention
\ntechnology to combat an increase in financial crime, as basic fraud systems may
\nnot adequately protect them against emerging and complex fraud typologies.<\/p>\n
\n
<\/p>\n
\nthe pandemic, such as Singapore, Australia, Vietnam, and Taiwan, while
\nconfidence will be relatively higher, spending will be cautious, as maintaining
\nsubstantial cashflow will remain a priority. Rather than overhauling fraud and
\ncompliance systems, FIs would likely choose to recalibrate, update and optimise
\ntheir digital onboarding as well as payments and transaction monitoring
\ntechnology. Investments would be specific to address prominent gaps and data
\nintelligence. Alternative data to onboard more challenging cohorts, creating
\nreadiness against cyber endpoint threats, and relationship analysis may be
\nconsidered to address acquisition growth strategy and growing volumes and
\ncomplexity of online fraud attacks.<\/p>\n
\n
<\/p>\n
\ncontinue to skyrocket<\/b><\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nand has normalised expectations around customer experience (CX) including same-day
\ndelivery services, real-time shipping tracking, and more, in turn significantly
\nimpacting customers’ CX standards for FIs. A recent
\nstudy<\/a> showed seven in 10 customers demonstrated a deeper loyalty to
\nfinancial services and insurance companies that heavily invest in CX.<\/p>\n
\n
<\/p>\n
\ndeliver instantaneous services through new financial products, with GBG’s
\nlatest research<\/a> finding 31% of FIs in APAC planning to offer instant bank
\naccounts and instant loans, 29% planning to offer instant credit cards, and 22%
\nplanning to offer user voice activated fund transfers and bill payments. To
\ntake CX to the next level, there is a probability that the financial services
\nsector will explore replicating successes from other industries, such as retail
\nbusinesses that have effectively used augmented reality (AR) and virtual
\nreality (VR) technologies to re-create in-store experiences, which could be
\nused by banks to create virtual in-branch experiences.<\/p>\n
\n
<\/p>\n
\ndrill-down are re-shaping digitalisation standards <\/b><\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nspace demonstrated the investment across seemingly unlikely industries in
\nworking together to effectively serve customers at scale. Last year, for
\nexample, Trip.com
\nGroup partnered<\/a> with Standard Chartered, PCCW and HKT to launch a new
\nvirtual banking service and Asia’s first all-in-one numberless bank card, Mox,
\nwhile multinational ride hailing company Grab
\nteamed up with Singtel<\/a> to prepare to launch their own digital banking
\nlicense in 2022. While both of these examples span multiple industries, they
\neach highlight the impetus among businesses to use business partnerships to
\ngain truly 360-degree views of their customers’ needs.<\/p>\n
\n
<\/p>\n
\ncontinue as government and regulatory bodies work together to focus on
\naccelerating digital identity availability, while also teaming up with partners
\nlike telco providers, educational institutions and aggregators to create access
\nto more comprehensive and accurate data sets. FIs would become more active in
\nexploring the use and ingestion of incremental data sets, beyond the basic
\ninternal data and official sources, to feed into their core fraud engine and
\nenhance fraud detection and prevention.<\/p>\n
\n
<\/p>\n
\npropositions. This openness and innovation would spill over into fraud
\nmanagement and propel them to leverage on an expanded ecosystem to layer their
\ndata with intelligence from specialists in location, mobile data, devices,
\ncybersecurity, data co-relation, and IP. This broader and deeper approach will
\nmore effectively equip FIs with appropriate fraud prevention capabilities as
\nthe world becomes increasingly digital-first.<\/p>\n
\n
<\/p>\n
\nofferings across SEA<\/b><\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\ndisrupted the credit landscape with shorter-term credit services for everyday
\npurchases, faster or no credit checks, instant approvals, and “zero interest”. New
\nBNPL players across
\nAPAC<\/a> have been setup and are quickly catching onto opportunities to offer
\nnew and more agile types of loans.<\/p>\n
\n
<\/p>\n
\nrolled out, credits are distributed, and debts are managed. This ease in
\nobtaining credit can lead to more exposure to higher risk borrowers. FIs
\nfocusing on growing their BNPL offerings need to build in stronger measures to
\nonboard consumers who have the ability and intent to pay back what they have
\nborrowed while keeping the standards of BNPL experience to ensure this revenue
\nstream does not go sideways in the long term.<\/p>\n
\n
<\/p>\n
\nfundamental building blocks for dynamic digital onboarding and transacting<\/b><\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\ndigital onboarding and transacting process. FIs are automating the identity
\nverification journey and streamlining biometric and facial verification,
\ndocument verification and data match altogether in instant KYC.<\/p>\n
\n
<\/p>\n
\nidentity verification process. In Southeast Asia, seven
\nin 10 adults are either “underbanked” or “unbanked<\/a>“and excluded from many
\ntraditional financial services. FIs have begun to ascertain the quality of consumers
\nwith limited identity documentation, or thin file clients, leveraging their
\nmobile phones as a personal identity verification device.<\/p>\n
\n
<\/p>\n
\nrecords are alternatives to traditional verification methods, datasets and data
\nsources. These alternatives offer data intelligence that FIs could use to fill
\ngaps in physical records, providing assessment and validation to the authenticity
\nand quality of consumer profiles and borrowing intent of these untapped
\nsegments. <\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nidentity crimes taking on a new level of complexity<\/b><\/p>\n
\n
<\/p>\n
\n
<\/p>\n
\nof accelerated digital transformation among businesses, skyrocketing consumer
\nusage of social media, ecommerce, ebanking and online platforms, and increased collaboration
\nacross FIs and non-bank organisations result in growing opportunities for
\nfraudsters and crime syndicates to mine data.<\/p>\n
\n
<\/p>\n
\nidentity crimes like synthetic ID and impersonations would take on a new level
\nof detection complexity. FIs have a responsibility to counter these attacks,
\nproactively manage the growing volume of channels where bad actors can access
\npersonal information, and guard against financial crime and identity theft. As such
\nthreats continue to broaden alongside other industry-wide trends, consumers’
\nexpectations of FIs’ commitments to protecting and futureproofing their
\nfinancial services and products will also grow.<\/p>\n
\n
<\/p>\n
\nto customer satisfaction and retention with more sophisticated and agile
\napproaches to fraud prevention and fraud technology investments. <\/p>\n<\/p><\/div>\n\n
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