- \n
- 70% of all FSI
\norganizations in Asia Pacific say innovation is now a ‘must’, and over 6 in 10
\nFSI organizations (66%) are accelerating digitization in response to the crisis<\/i><\/li>\n- FSI Leaders[1]<\/sup>, with the most mature culture of innovation, are more
\nresilient and expect growth despite the pandemic:<\/i><\/li>\n<\/ul>\n- –\u00a068% of FSI Leaders expect
\nthat their organizations will recover from the COVID-19 crisis in six months or
\nless<\/i>–\u00a0More than 1 in 2 FSI
\nLeaders (53%) expect to increase their market share despite the pandemic<\/i>\n<\/ul>\n- –\u00a0More than 1 in 2 FSI
\nLeaders (53%) expect to increase their market share despite the pandemic<\/i>\n<\/ul>\n\u00a0<\/b><\/p>\n
\u00a0<\/b><\/p>\n
SINGAPORE\u00a0–\u00a0Media OutReach<\/a>\u00a0– 7 December 2020\u00a0–\u00a0Despite the challenges and disruptions of COVID-19, the
\nregional Financial Services Industry (FSI) has continued to forge ahead and
\naccelerate the pace of digitization in response to the pandemic, according to
\nMicrosoft-IDC’s latest findings. <\/p>\n![](\"https:\/\/release.media-outreach.com\/release.php\/Images\/Thumb\/500x0\/109830\/1.jpg#image-109830\")
<\/p>\n\u00a0<\/p>\n
Unveiling the FSI findings of the culture of innovation study in
\nconjunction with Singapore Fintech Festival 2020, the Microsoft and IDC’s study[2]<\/sup>
\nfound that more than 6 in 10 (66%) FSI organizations are accelerating
\ndigitization of their businesses. This figure rises to 86% amongst FSI Leaders,
\norganizations who have the most mature culture of innovation, defining their
\nability to drive sustained innovation.<\/p>\n\u00a0<\/p>\n
Based on the survey of 597 regional business decision makers in FSI across
\n15 markets in Asia, within a 6-month period, before and since COVID-19, the
\nsector was found to be ahead in its ability to innovate in response to
\nchallenges. Specifically, 70% of all FSI organizations in Asia Pacific say that
\ninnovation is now a “must” and almost all FSI Leaders (96%) agree and are
\nactively putting this into practice.<\/p>\n\u00a0<\/p>\n
“One thing is clear: the industry’s rapid response, reflected in the
\nincrease of maturity in adopting a culture of innovation, across people,
\nprocess, technology and data practices, has paid dividends<\/i>,” explained Connie
\nLeung, Regional Business Lead, Financial Services, Microsoft Asia.<\/p>\n\u00a0<\/p>\n
“FSI Leaders, in particular, expect to thrive amid the crisis, with 53%
\nof them expecting to increase their market share despite the pandemic and 86% further
\naccelerating digitization in response to the crisis. We are definitely seeing
\nthis take shape within the industry, with organizations like <\/i>Bankwest<\/i><\/b><\/a>, investing in self-service solutions to
\nimprove the customer experience at a time where <\/i>customers are expecting meaningful connection despite
\nsocial distancing<\/i>,” continued Leung.\u00a0<\/p>\n
Apart from relying on innovation, the study also revealed that FSI
\norganizations are deriving high revenue shares from digital products and
\nservices — this stands at 39% currently and is forecasted to rise to 52% in three
\nyears.\u00a0 This is much more so for FSI
\nleaders, where this stands at 47% today and expected to rise to 57% in three
\nyears.\u00a0 <\/p>\n\u00a0<\/p>\n
This is evident in the examples of Indian fintech start-up, Paisabazaar<\/b><\/a>, which introduced a new digital service to digitally overhaul the
\npersonal loan application and approval process amid the pandemic, as well as banking groups like Standard Chartered
\nBank<\/b><\/a> and <\/b>National Australia
\nBank<\/b><\/a> which have taken steps toward a cloud-first digital
\nstrategy, to make virtual banking, next-generation banking and payment services
\na reality for customers.<\/p>\n\u00a0<\/p>\n
Assessing the Innovation Maturity of FSI Organizations <\/b><\/p>\n
During COVID-19, FSI organizations matured in their approach toward
\ninnovation. This has included the swift pivot of business processes to raise
\ncustomer experience and centricity and embracing data management insights to
\nenhance the speed and quality of decision making. In addition to that, FSI
\norganizations have integrated cloud technologies to ensure business continuity
\nduring a time of remote working and living. <\/p>\n\u00a0<\/p>\n
The study confirmed this, and found that in the span of six months, Asia
\nPacific’s FSI organizations have matured in the culture of innovation by 12%,
\nwhich indicates an increased ability to drive sustained innovation.<\/p>\n\u00a0<\/p>\n
\n![](\"https:\/\/release.media-outreach.com\/i\/109837\/2.jpg\")
\n<\/div>\nFig 1: Growth
\nin Culture of Innovation Maturity (%)<\/i><\/p>\n\u00a0<\/p>\n
FSI organizations have improved their sentiments on innovation with 61%
\nof FSI leaders agreeing that innovation is easier since COVID-19. Other FSI
\norganizations have also embraced a more positive stance, with 52% agreeing with
\nthis statement. <\/p>\n\u00a0<\/p>\n
“FSI has maintained its lead, based on our findings,
\nand was assessed to be the most innovative vertical[3]<\/sup><\/b>,
\nwith the highest culture of innovation maturity score, and the highest
\nproportion of leaders and verticals,” said Michael Araneta, Head of IDC
\nFinancial Insights, Asia Pacific.<\/i><\/p>\n“What has been most interesting is that large FSI organizations — the
\nincumbents — are not necessarily laggards in the space but on occasion, credible
\nleaders with a mature culture of innovation.<\/i> On the flipside, t<\/i>he prospects of some
\nchallenger banks are already dimming in some markets, as they have not been
\nable to address sources of funding despite previously having good prospects
\nwhen it came to their services in payments, and lending<\/i>,” continued Araneta.<\/p>\n\u00a0<\/b><\/p>\n
Putting a Culture of Innovation into practice — best practices from FSI
\nLeaders for the new year <\/b><\/p>\nThe study revealed the best practices that organizations can adopt,
\nreferencing the culture of innovation framework, for progress across people, process,
\ndata, and technology. <\/p>\n\u00a0<\/p>\n
Specifically, organizations are encouraged to: <\/p>\n
1.\u00a0\u00a0\u00a0\u00a0
\n<\/b>Leverage platforms
\nto drive transformation <\/b><\/p>\nAs FSI organizations continue to forge ahead and integrate technology in
\ntheir operations as well as products and services, moving mission-critical
\nbusiness processes and workloads onto cloud platforms will be key to ensure
\nthat innovation scales. Technology architecture will also need to be
\nwell-integrated to effectively enable transformation, which will be a key
\nmeasure of technology Return on Investment (ROI).<\/p>\n\u00a0<\/p>\n
2.\u00a0\u00a0\u00a0\u00a0 <\/b>Enhance People’s capabilities through enterprise-wide
\nskilling initiatives <\/b><\/p>\nA diverse cross-industry, multicultural and multi-generational talent
\nwill be key in generating new and disruptive ideas. Beyond that, FSIs need to
\nchampion a culture that embraces collaboration, especially with third parties,
\nto create new value.<\/p>\n\u00a0<\/p>\n
3.\u00a0\u00a0\u00a0\u00a0 <\/b>Utilize Data for extreme personalization and rapid
\nvalue creation <\/b><\/p>\nInvesting in data will not only enable FSIs to enhance and differentiate
\nproducts and services, but with trust, privacy, and security paramount for
\ntheir businesses, a well-integrated data architecture will enable the building
\nof accurate, trusted and secure data sources for reliable decision-making when
\nit is needed most. This will enable personalization and real-time insights. <\/p>\n\u00a0<\/p>\n
4.\u00a0\u00a0\u00a0\u00a0 <\/b>Integrate automation within Processes to empower
\ncontinuous innovation <\/b><\/p>\nAutomation will be key especially for business processes that have high
\nimplications to customer experience, to accelerate the enablement of
\nenterprise-wide collaboration and knowledge sharing. Processes will also need
\nto account for a way to ensure a formal and systematic approach to driving innovation
\nand incorporating this within operations for sustained impact.<\/p>\n\u00a0<\/p>\n
“As FSIs continue to forge ahead in a post-pandemic world, lasting
\ntransformation will only take place if FSIs alongside investments in
\ntechnology, prioritize people and culture, as they are key to ensuring greater
\ncollaboration and continuous transformation. At Microsoft, we are committed to
\nworking with the regional FSI ecosystem to unlock the value of innovation, and
\nreimagine the industry for the future, together,”<\/i> concluded Leung. <\/p>\nAPPENDIX<\/b><\/p>\n
![](\"https:\/\/release.media-outreach.com\/i\/109844\/3.jpg\")
<\/i><\/p>\nAppendix A:
\nStages of Culture of Innovation<\/i><\/p>\n\u00a0
![](\"https:\/\/release.media-outreach.com\/i\/109851\/4.jpg\")
<\/p>\nAppendix
\nB:\u00a0 Culture of Innovation Framework<\/i><\/p>\n![](\"https:\/\/release.media-outreach.com\/i\/109858\/5.jpg\")
<\/i><\/p>\nAppendix C: Innovation Capability as a Key Theme in Post-Pandemic
\nBanking<\/i><\/p>\n\u00a0<\/i><\/p>\n
\u00a0<\/i><\/p>\n
\n
<\/p>\n
\n\n[1]<\/sup> FSI Leaders, or leading organizations, fall into the most mature stage
\n(Stage 4) of the culture of innovation model comprising the areas of people, process,
\ndata, and technology<\/p>\n<\/div>\n\n[2]<\/sup>Research
\nbackground for Culture of Innovation:<\/i><\/b> Foundation for business
\nresilience and economic recovery in Asia Pacific<\/i><\/b>:<\/b><\/p>\n*\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
\nThe study was conducted in two phases —
\nPhase 1 (Pre-COVID; Dec 2019-Jan 2020) and Phase 2 (Since COVID-19; July 2020)
\nPhase 1 – 257 business leaders; Phase 2 – 340 business leaders. Participants
\nfrom organizations with more than 250 staff were polled. 15 Asia Pacific
\nmarkets were involved: Australia, China, Hong Kong, Indonesia, India, Japan,
\nKorea, Malaysia, New Zealand, Philippines, Singapore, Sri Lanka, Taiwan,
\nThailand, and Vietnam.<\/p>\n<\/div>\n\n[3]<\/sup> The Culture of Innovation study covers 5 key verticals in Asia: FSI, Manufacturing,
\nEducation, Retail and Healthcare.<\/p>\n<\/div>\n<\/div><\/div>\n\n
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