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The digital revolution is transforming the banking and financial services sector in Asia, with Southeast Asia becoming a global hotspot for innovation. The adoption of and digital banking technologies by Asian banks and financial service providers is accelerating in response to market demands and fueled by the pandemic.
Bn Company's data indicates that the penetration rate of banking services in Southeast Asia stands at around 50, creating a significant opportunity to drive financial inclusion. This underbanked segment consists primarily of micro-enterprises, small and medium-sized enterprises SMEs, and rural populations with immense potential for digital financial service adoption.
The Monetary Authority of Singapore has facilitated this transformation by granting four digital bank licenses in December last year - two full banks and two wholesale banks. Malaysia and the Philippines have recently adopted licensing frameworks, planning to award up to five digital banking licenses.
Tan Bin Ru, CEO at OneConnect Southeast Asia, highlights that customer experience stands as a key differentiator for successful digital banking services. users expect new products tlored to their lifestyle, she states, noting that many banks struggle with outdated apps and limited service offerings.
The rapid adoption of digital banking has been observed not just in terms of technology provision but also organizational changes within financial institutions. The shift towards digital banking requires a comprehensive transformation, from talent acquisition to technological integration and management support.
OneConnect, established since 2015, supports the digital journey of over 20 countries' financial institutions with its range of market-ready, modular, and customizable solutions. As a strategic technology partner for banks, OneConnect offers expertise that bridges traditional banking knowledge with advancedcapabilities.
The company boasts domn expertise across data science, cloud computing, blockchn, Internet of Things IoT, and user experience design. It is an associate of Ping An Insurance, a Fortune Global 500 company with over three decades in the financial industry.
OneConnect's approach emphasizes understanding the unique pn points of banks to tlor its services effectively. The firm invests heavily in research and development for continuousmodule enhancement, which has led to more than RMB3.8 billion being dedicated to RD from 2017 to 2020.
When selecting a fintech partner for digital banking support, Tan suggests looking for companies with strong domn knowledge, extensive solution portfolios that can scale as your business grows and evolve alongside advancements in technology.
was originally published on Business Reporter. Image Credit: iStock id827843530
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Southeast Asia Digital Banking Revolution AI Adoption in Asian Finance Sector Financial Inclusion Opportunities in ASEAN BainCompanys Banking Penetration Insights Singapore Digital Bank Licensing Policy Customer Experience as Key Differentiator