February 22, 2024

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Digital payments usage to increase in 2019

An analytics software firm predicted that the usage of emerging digital payments solutions is expected to pick up further in 2019.

The increase in its usage will displace legacy payment options such as cash and credit cards.

According to a recent report, emerging payment solutions such as mobile wallets and peer-to-peer payment networks are incorporating themselves in the day-to-day lives of consumers, particularly the younger generations.

Fair Isaac Corp. (FICO) explained that big strides have already been made in Asia Pacific with mobile payment usage climbing 30% in 2018.

The trend, they predict, is only going to accelerate this year.

2019 will see a more mature emerging payments solutions. The companies will pay attention on educating their customers and adapting their fraud controls in order to counter threats from cybercriminals.

The Bangko Sentral ng Pilipinas (BSP) has been promoting the shift into a “cash-lite” economy to which the banks and other financial institutions in the country have responded by enriching and foraying into electric payments.

A “cash-lite” economy is where financial transactions veer away from cash and check and move toward electric fund transfers and digital wallets.

The main goal is to increase the share of electronic payments to 20% of all transactions by 2020, coming from a merely 1% share in 2013.

The organisation also predicted that apart from the maturing payment solutions, banks will invest on deposit pricing strategies as lenders might face issues from growing or at least sustaining their deposits base, given the “current rising rate environment.”

Several tools will give banks the ability to deliver smarter and more granular pricing that will enable them to compete effectively in this increasingly frenetic environment.

These sophisticated analytics tools, like optimisation, and the ability to rapidly deploy the models developed by these tools will definitely benefit the banks.

Banks that are undergoing digital transformation will eventually realise that they have a silos problem, as isolated business units and technology stacks for credit risk and fraud, work poorly when it comes to large-scale transformation.

Banks will increasingly recognise this and work to improve on the negative effects of silos as they shift from product-centric to customer-centric business strategies.

As reported, a global consulting firm released a paper with findings that banks are starting to partner with financial technology (fintech) companies because they have realised the potential of these emerging firms in the financial services industry.

McKinsey & Co. recently released a paper titled “Synergy and disruption: Ten trends shaping fintech”.

It showed that an increasing number of legacy financial institutions, or the incumbents, are recognising the benefits of combining their strength with fintech companies through partnership models.

Moreover, fintech firms are seeing the value of partnering with the incumbents as they reach the saturation point in their native digital marketing channels.

They have realised that the compliance and regulatory competencies of banks can be valuable to them.

Partnerships of financial institutions as well as fintechs are getting more common, with almost 80% of financial companies already into partnerships with fintechs.

Global venture capital fintech investment in 2018, meanwhile, has already reached US$ 30.8 billion from just US$ 1.8 billion in 2011.

Amid increasing partnerships, the incumbents are starting to lead the charge to upgrade digital experiences in their core banking products in order to match services provided by fintech firms.

The firm noted that as legacy financial institutions are stepping up to improve their digital platforms, the better user experience provided by fintechs is no longer enough to capture more customers.

Today, most financial institutions have transformed their retail user experience, offering full mobile functionality with best-in-class design principles.

Customers, as a result, require more reasons to switch to new fintech offerings.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

PARTNER

CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

PARTNER

Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

PARTNER

HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

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