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All Malaysian digital asset offerings will now need government authorization and will have to meet anti-money laundering and cyber-security guidelines. The Securities Commission is beginning to implement new regulations on Initial Coin Offerings (ICOs) and the trading of digital assets, this is because up to now this sector has been unregulated.
Malaysia’s Finance Minister YB Tuan Lim Guan Eng announced that cryptocurrencies and initial coin offerings have come under regulation on from Tuesday 14 January.
He said that the “Capital Markets and Services Digital Currency and Digital Token Order, 2019” would establish criteria for coin issuers and exchange operators and bring about disclosure of standards and best practices in pricing, trading and client asset protection.
Any future digital asset offerings will require Securities Commission authorization, will have to meet anti-money laundering and counter-terrorism financing rules and will have to demonstrate cyber-security and business continuity measures.
Mr Lim said that “The Ministry of Finance (MOF) views digital assets, as well as its underlying blockchain technologies, as having the potential to bring about innovation in both old and new industries. In particular, we believe digital assets have a role to play as an alternative fundraising avenue for entrepreneurs and new businesses, and an alternate asset class for investors.”
As per the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019, crypto currency service providers and exchanges are required to obtain authorization from the country’s Securities Commission, which will work with the central bank to ensure compliance. The Securities Commission Malaysia (SC) said it will issue guidelines to regulate offering and trading of digital assets.
The regulations are expected to be launched before the end of the first quarter in 2019. Any infringements of the new laws can lead to a fine of up to 10 million Malaysia ringgit and 10 years in prison.
The Securities Commission said that in order to implement the regulatory framework on digital assets, it will coordinate with the Bank Negara Malaysia, the country’s central bank, to ensure compliance with laws and regulations.
Since the announcement of the Capital Markets and Services Digital Currency and Digital Token Order, 2019”, the Securities Commission has been in contact with existing digital asset platform operators and arrangements have been put in place to enable these platforms to continue operating for a transitional period until 1 March 2019, as long as they fulfil conditions laid out by the SC.
During this period, these platform operators are not allowed to accept new investors and will only be allowed to facilitate the withdrawal or transfer of client assets with the written instruction of the investor.
Existing platform operators who failed to or did not attend the engagement with the SC on 17 January 2019 are advised to contact the SC immediately and not later than 25 January 2019, failing which they shall be deemed to be operating a market in breach of the securities laws.
Once the relevant guidelines have been issued, existing platform operators will be required to apply to the SC for authorisation if they intend to operate beyond the transitional period.
With regard to initial coin offerings (ICOs), the Securities Commission Malaysia has stated that ‘no person shall conduct an ICO without the prior authorisation of the SC. In this regard, the guidelines for ICOs will be issued by the end of Q1 2019. In the meantime, ongoing ICOs should cease all activities and return all monies or digital assets collected from investors.’
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An internationally recognised card service company, with a significant presence in the digital payments domain, released insights shedding light on Vietnam’s evolving payment landscape. Through its comprehensive consumer payment attitudes study, the company, highlights a surge in cashless transactions among Vietnamese consumers, signifying a progressive shift towards embracing novel financial technologies.
According to the study’s findings, a staggering 56% of Vietnamese respondents reported carrying less physical cash than they did a year prior, indicative of a growing inclination towards digital payment methods. Notably, the younger demographic is leading the charge in this transition, with a striking 89% having seamlessly adopted cashless payment solutions.
Furthermore, the company delves into the prevailing trends shaping Vietnam’s burgeoning non-cash economy, notably highlighting the ascendancy of mobile wallets. Vietnam stands among the top Southeast Asian markets witnessing rapid mobile wallet adoption, serving as the preferred avenue for payments and substantially contributing to the digital finance sector’s growth. Remarkably, four out of every five Vietnamese consumers utilise mobile wallets, positioning the country as a frontrunner in mobile finance adoption.
In tandem with the surge in mobile wallet usage, real-time payments (RTPs) have gained considerable traction in Vietnam, underscoring the nation’s receptiveness to cutting-edge financial technologies. The unparalleled convenience and efficiency offered by RTPs have fueled further digitisation of the economy, with at least two in five consumers leveraging these services for various transactions, including cross-border transfers, peer-to-peer payments, merchant transactions, and bill settlements.
Additionally, the buy now, pay later (BNPL) service has emerged as a popular choice among Vietnamese consumers, offering flexible payment options and driving increased consumer engagement. The company’s strategic collaborations with leading Vietnamese retailers for its instalment solutions exemplify the transformative impact of such services in fostering financial inclusion and spurring business growth.
While credit cards may witness comparatively lower usage for wallet top-ups and funding, they remain the preferred choice for BNPL plans in Vietnam. The ease of use, coupled with incentives like free vouchers, rewards points, and transparent payment tracking mechanisms, have been instrumental in driving the adoption of BNPL offerings.
Vietnam’s ongoing cashless payment revolution not only presents unparalleled opportunities for economic growth but also fosters innovation, unlocking new avenues for both consumers and businesses in the transition towards a cashless society.
The Country Manager for Vietnam and Laos at the card service company emphasised the company’s unwavering commitment to driving innovation and enhancing digital payment experiences for consumers. The findings from their study corroborate the growing trend towards contactless transactions, evidenced by a significant 53% increase in contactless transactions made on their cards, accompanied by a 19% surge in purchases and a substantial rise in the total value of cross-border transactions.
Supporting data from the State Bank of Vietnam (SBV) further underscores the positive trajectory of non-cash payment and digital banking activities in the country. As of the end of 2023, individual payment accounts surpassed 182.88 million, reflecting a notable 21.8% year-on-year increase. In January 2024, non-cash transactions surged by 63.3% in volume and 41.45% in value compared to the previous year, with transactions through the internet and QR codes witnessing exponential growth rates.
OpenGov Asia reported on Vietnam’s strides towards a cashless society, attributing the momentum to government policies favouring digital payments. Increased online transactions fuel competition among tech firms, advancing Vietnam’s digital economy. A survey showed that 43.8% of sellers accept bank transfers, and 15.3% use VietQR codes, indicating wide digital payment adoption.
Encouraged by these trends, the SBV continues to advocate for digitalisation within credit institutions, fostering collaboration across sectors to expand the digital ecosystem, while concurrently refining the legal framework, mechanisms, and policies governing non-cash payments.
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In a bid to tackle the growing menace of digital crime and leverage technological advancements to bolster law enforcement efforts, the Royal Malaysia Police (PDRM) has unveiled plans to establish a new department dedicated to cyber technology. The announcement was made by Inspector-General of Police Tan Sri Razarudin Husain during the 217th Police Day Commemoration Celebration 2024 held in Kuala Lumpur.
In his address, Tan Sri Razarudin highlighted the need for PDRM to adapt to the changing landscape of crime, which has become increasingly complex due to rapid advancements in digital technology. He emphasized that the proliferation of digital crime poses significant challenges to law enforcement agencies worldwide and requires proactive measures to mitigate its impact on society.
The proposed cyber technology-based department aims to address these challenges by focusing on the investigation and prevention of digital crime, as well as the development of strategies to combat emerging threats in the cyber domain. By harnessing the power of technology, PDRM seeks to enhance its capabilities in detecting, investigating, and prosecuting cybercriminals while safeguarding the digital infrastructure of the nation.
Tan Sri Razarudin underscored the importance of government support for this initiative, emphasising that the establishment of the new department would enable PDRM to operate at its maximum potential in combating digital crime. He expressed hope that the government would consider the proposal favourably, recognising the critical role of law enforcement in ensuring the safety and security of the country’s digital ecosystem.
The decision to create a specialised department reflects PDRM’s commitment to staying ahead of the curve in the fight against cybercrime. With the rise of digital technology revolutionising various aspects of daily life, including communication, commerce, and entertainment, criminals have also capitalised on these advancements to perpetrate a wide range of illicit activities online.
From cyber fraud and identity theft to hacking and online harassment, the spectrum of digital crimes continues to evolve, presenting new challenges for law enforcement agencies worldwide. In response, PDRM aims to equip its officers with the necessary skills and tools to effectively combat these threats and protect the interests of the public in the digital age.
The establishment of the cyber technology-based department underscores PDRM’s proactive approach to addressing the challenges posed by digital crime. By investing in specialised training and resources, the police force aims to build a team of experts capable of navigating the complexities of the cyber domain and staying abreast of emerging trends and tactics employed by cybercriminals.
Moreover, the initiative reflects PDRM’s recognition of the interconnected nature of modern crime, where traditional and digital forms of criminal activity often intersect. By integrating cyber technology into its law enforcement strategies, PDRM seeks to foster a holistic approach to crime prevention and detection, ensuring that no avenue for criminal exploitation goes unchecked.
The establishment of a new department focused on cyber technology represents a significant step forward for PDRM in its efforts to combat digital crime. With the support of the government and a dedicated team of professionals, PDRM is poised to harness the power of technology to safeguard the digital well-being of the nation and uphold the rule of law in the digital age.
Malaysia is taking proactive steps to ensure cyber resilience amidst the evolving digital landscape, with a focus on combating rising threats like fraud and ransomware. The government has enacted legislation to promote cybersecurity, including laws governing data protection and electronic transactions.
The Legal Affairs Division, led by Minister Datuk Seri Azalina Othman Said, is drafting the Digital Safety Bill 2023, aligning with Prime Minister Datuk Seri Anwar Ibrahim’s vision and highlighting the importance of proactive legislation to address cyber threats effectively.
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In a world where addressing climate change has emerged as one of the defining challenges, innovation and digital transformation have the potential to combat climate change and accelerate the transition to a sustainable future.
Government officials, academics, and business leaders gathered at the SGFIN Sustainability Summit in Singapore to delve into the intersection of technology and finance, aiming to combat climate change and expedite the shift towards a sustainable future.
Deputy Prime Macinaister Heng Swee Keat, in his opening remarks, underscored the urgent need for collective action to address climate change, emphasising its global repercussions. From extreme weather events to rising sea levels, the impacts of climate change are felt across borders, disrupting economies and threatening livelihoods. In Singapore, where temperatures have risen steadily over the past four decades, the imperative for action is particularly acute.
Singapore has positioned itself as a leader in sustainability, committed to achieving net-zero emissions by 2050 outlined in the Singapore Green Plan 2030. This comprehensive roadmap encompasses a wide range of initiatives, including increasing the deployment of solar energy, enhancing green infrastructure, and implementing measures to reduce water consumption and waste generation.
GovTech, as the public sector’s centre of excellence for info-comm technology and smart systems (ICT&SS), is spearheading efforts to decarbonise public sector technology as part of the nation’s commitment under the Singapore Green Plan 2030.
Among GovTech’s initiatives are ensuring environmental consideration throughout the lifecycle of products and services with the GovTech Sustainable Digital Value Chain. This involves assessing and minimising environmental impacts from creation to disposal.
Additionally, GovTech provides energy-efficient data centres and cloud hosting options certified with Green Mark Platinum to meet the consolidated needs of the entire government more efficiently through its Green Government Hosting initiative.
Key initiatives include offering digital alternatives to physical transactions such as tele-conferencing and digital business cards through the Digital Workplace, centralising energy-efficient data centres to support agency server room consolidation, and developing secure government cloud solutions to accelerate the adoption of modern cloud capabilities through Government Hosting Consolidation and Cloud Migration.
GovTech is also actively exploring Green IT tools to augment software development processes and reduce carbon emissions with its Green Software initiative. Furthermore, GovTech is developing an Open Digital Platform for smarter district planning in the Punggol Digital District. This platform is expected to reduce energy and water consumption by up to 30% compared to the national average, showcasing the country’s commitment to driving sustainability through technological innovation.
Deputy Prime Minister Heng highlighted the importance of embedding sustainability across all sectors of the economy, noting the role of initiatives such as mandatory climate-related disclosures for listed companies in driving progress.
Finance plays a pivotal role in driving the transition to a low-carbon economy, serving as a critical enabler of climate action. Deputy Prime Minister Heng outlined Singapore’s efforts to mobilise financial resources for green investments, citing initiatives such as the Finance for Net-Zero (FiNS) Action Plan and the Singapore-Asia Taxonomy for Sustainable Finance.
These initiatives aim to provide investors with clarity and transparency regarding sustainable investments, thereby reducing the risks of greenwashing and facilitating the flow of capital towards climate-friendly projects.
Deputy Prime Minister Heng outlined strategies to mobilise finance for climate action, emphasising talent pool enhancement in sustainable finance, robust regulatory standards, and urging the use of venture capital for innovative climate solutions, aligning with Singapore’s research and innovation focus.
As nations continue to exchange ideas and forge partnerships, collaboration is key, paving the way for transformative change and a more sustainable future powered by innovation and financial ingenuity. It is through such collective efforts that the world can hope to overcome the challenges of climate change and create a better world for future generations.
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In a move set to reshape Hong Kong’s fintech landscape, the Hong Kong Science and Technology Parks Corporation (HKSTP) and an international bank have embarked on a pioneering three-year strategic partnership. This collaboration marks the city’s largest innovation and technology (I&T) ecosystem joining forces with a leading global financial institution, representing a significant step forward in fostering innovation and fortifying the bank-fintech collaboration ecosystem.
The agreement, inked by the Chief Executive Officer, Hong Kong from the international bank and Albert Wong, Chief Executive Officer of HKSTP, signifies a milestone in driving Hong Kong’s startup, fintech, and I&T ecosystems to new heights. This transformative partnership is poised to revolutionize Hong Kong’s fintech landscape through a strategic focus on five key areas:
International Fintech Corridor: Facilitating seamless collaboration between Hong Kong-based fintech firms and global partners, with a keen focus on attracting international companies to establish a presence in Hong Kong. Through insightful market analyses and supportive services, the partnership aims to empower tech companies to expand their global footprint. Notable initiatives include business matching events and participation in international delegations to foster global connections.
Investment Opportunities: Identifying and nurturing promising technology companies by providing access to funding opportunities, investment insights, and mentorship. The partnership aims to support a minimum of 50 fintech companies proposed by HKSTP, offering tailored financing solutions and investment opportunities to fuel their growth journey.
Ecosystem Growth and Support: Offering coaching sessions, access to industry experts, mentorship, and networking opportunities to foster the growth of HKSTP’s fintech ecosystem. Through a series of workshops, fintech companies will receive guidance to ensure the safe operation of their solutions in collaboration with financial institutions. The partnership aims to invite up to 20 fintech firms annually to these workshops and provide customised financial services, including payment, lending, foreign exchange, cash management, and trade finance support.
Data Collaboration: Enhancing cross-industry data collaboration capabilities to drive innovation and improve accessibility to products and services.
Solution Scouting and Co-creation: Evaluating and potentially integrating HKSTP’s tech ventures’ fintech solutions into the bank’s products and services. Additionally, the partnership will explore opportunities for product co-creation with fintech companies to drive innovation and enhance customer experiences.
Albert Wong, CEO of HKSTP, expressed enthusiasm about the transformative journey ahead, emphasizing the collaborative effort’s potential to propel fintech innovation and scale up Hong Kong’s fintech ecosystem. He highlighted the partnership’s commitment to leveraging networks, funding, mentorship, and business matching opportunities to drive fintech growth.
Hong Kong’s emergence as a leading fintech hub, boasting over 1,000 fintech companies and nearly 4,000 startups, underscores the strategic importance of fostering innovation in the region. With a strong emphasis on technological innovation and development, reflected in the 2023 Hong Kong Policy Address, the government’s vision aligns with the partnership’s objectives to enhance Hong Kong’s long-term competitiveness.
In the banking sector, Hong Kong’s proactive approach to promoting fintech advancements across various domains, including Wealthtech, Insurtech, Greentech, and Regtech, underscores the region’s commitment to embracing digital transformation. With ongoing initiatives to explore the potential of artificial intelligence, blockchain, tokenization, and virtual assets, Hong Kong is well-positioned to drive fintech innovation on a global scale.
Continuing its commitment to fostering open banking innovation, the international bank will sponsor HKSTP programmes such as the Elevator Pitch Competition (EPiC) and API EcoBooster. EPiC 2024, which attracted over 600 leading tech startups from 47 economies globally, serves as a testament to the collaborative efforts driving fintech innovation locally and globally, further solidifying Hong Kong’s position as a key player in the digital economy arena.
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The rapid adoption of technological advancements and innovation in Singapore has spurred growth across various sectors, with the financial services industry (FSI) emerging as a frontrunner.
Recognising the importance of cutting-edge technology in a rapidly evolving digital landscape, the Monetary Authority of Singapore has partnered with banks and tech firms to develop an innovative Artificial Intelligence (AI) risk framework, exploring the multifaceted potential this technology offers the FSI.
In this dynamic landscape, the use of AI is paramount. Financial institutions are leveraging AI to distil crucial insights from vast datasets, enabling the development of highly financial products, services, and tools. Sectors like banking, trading, and insurance are modernising their operational frameworks with AI, utilising real-time insights to achieve superior outcomes, increased profits, and a competitive edge.
Further, the financial services industry is benefiting significantly from large language models (LLMs) – a specific type of AI algorithm. LLM applications utilise natural language processing (NLP) and machine learning (ML) methods to analyse extensive financial data, extract valuable insights, and facilitate well-informed decision-making. These applications are advantageous in diverse areas such as risk assessment, fraud detection, customer support, compliance, and investment strategies.
By automating recurring tasks and providing accurate and timely information, LLM applications improve operational efficiency, decrease the chances of human errors, and streamline decision-making processes. This technological advancement empowers financial institutions to stay competitive, adjust to dynamic market conditions, and offer personalised and efficient services to their clients.
Despite the significant competitive advantages offered by these advanced technologies, they also pose several challenges. One notable challenge is the integration of AI into the financial services sector, which raises complex issues concerning the security and privacy of data.
Given that the financial services industry deals with susceptible financial information, the use of AI, including LLMs, raises concerns about the safeguarding and confidentiality of this data. Navigating the delicate balance between harnessing the innovation and efficiency offered by AI and the crucial need to bolster defences against evolving threats remains a persistent challenge.
This necessitates continuous investment in security infrastructure, the implementation of rigorous data protection protocols, and strict adherence to regulatory standards, particularly in light of AI’s inherent challenge in the realm of data privacy within the dynamic landscape of the financial services industry.
Fostering sustainable IT is crucial in the FSI sector to mitigate environmental risks, enhance operational resilience, and align with growing expectations, ensuring long-term economic stability and regulatory compliance. AI is vital in helping organisations achieve sustainable IT through several means, including enhancing efficiency, reducing energy consumption, and optimising resource utilisation.
The OpenGov Breakfast Insight held on 22 March 2024 at Equarius Hotel Singapore explored the role of AI in addressing cybersecurity challenges in the financial services industry. The event highlighted the importance of AI in enhancing cybersecurity measures, particularly in detecting and responding to threats in real-time.
The conversation emphasised the vital role of public-private collaboration in crafting resilient cybersecurity strategies, highlighting the necessity of proactive measures and joint initiatives to protect financial institutions from emerging cyber threats amidst the AI-driven transformation. Participants and experts alike recognised the imperative of sharing information and working together to effectively counter cyber threats.
Opening Remarks
Mohit Sagar, CEO and Editor-In-Chief at OpenGov Asia, explained that platforms like OpenGov play a crucial role in enabling governmental bodies to evolve digitally, ensuring that governance is more efficient and accessible to the public.
“This digital shift is imperative as we stand on the cusp of a technological revolution, where the way we live, work, and interact is poised for dramatic changes,” he asserts.
The pandemic has underscored the significance of digital capabilities, thrusting the concept of remote work into the mainstream and accelerating technological advancements at an unprecedented pace.
The term ‘AI’ transitioned from a futuristic buzzword to a daily utility during this period. Towards the end of the crisis, AI technology had become democratised, making information derived from AI not only widely accessible but also remarkably accurate.
This surge in AI utility highlighted its potential in various sectors, notably in the banking and financial sectors, where intelligence and technology have become the primary drivers of differentiation. In an industry where trust is paramount, the integration of AI has opened new avenues for enhancing security, personalising customer experiences, and optimising operational efficiency.
“As we gaze into the future, the transformation powered by AI emerges as a definitive game-changer across all domains, including governance and public services. Yet, this transformation brings to the fore the critical challenges of data privacy and security,” Mohit cautions. “So how can societies become more innovative and efficient without open data sharing?”
The answer lies in navigating this journey with caution and care, underscored by the need for trusted partnerships that respect the delicate balance between leveraging data for advancement and safeguarding individual privacy.
Enhancing cyber resilience amid this AI-driven evolution is paramount. Data represents the lifeblood of our digital existence, akin to the biological imperative that one does not share blood with just anyone except in situations of utmost necessity.
“This analogy underscores the importance of meticulous data management and cybersecurity measures. In the digital age, as we march towards an increasingly AI-integrated future, the emphasis on cyber resilience cannot be overstated,” Mohit explains. “It involves protecting data against unauthorised access and ensuring that the digital ecosystem is robust enough to withstand and recover from any cyber threats or incidents.”
Amidst ongoing market fluctuations, the Financial Services Industry (FSI) finds itself in a transformative phase, compelling organisations to prioritise intelligence, efficiency, and security. With digital innovations reshaping the landscape, FSI entities are embracing advanced technologies like artificial intelligence to remain competitive and address evolving customer needs.
Large Language Models (LLMs), a specialised type of artificial intelligence (AI) algorithm, offer substantial benefits to the financial services industry (FSI). These benefits are crucial in enhancing operational efficiency, improving decision-making processes, and ensuring regulatory compliance:
- Extensive Financial Data Analysis:LLM applications leverage advanced natural language processing (NLP) and machine learning (ML) methods to analyse extensive financial data, providing valuable insights across various domains. These include risk assessment, fraud detection, customer support, compliance, and investment strategies.
- Operational Efficiency and Error Reduction:Automating recurring tasks and delivering timely information by LLM applications improve operational efficiency within the financial sector. By minimising the chances of human errors and streamlining decision-making processes, LLMs enhance overall operational effectiveness, positioning financial institutions to adapt to dynamic market conditions while staying competitive.
- Singapore’s Recognition of Tech Advancements:This collaborative effort reflects the nation’s recognition of the significance of cutting-edge technology, explicitly focusing on exploring the multifaceted potential that AI offers to the financial services industry (FSI).
Despite these benefits, integrating AI into the financial services sector presents challenges, particularly concerning the security and privacy of sensitive financial data. As the industry deals with highly confidential information, concerns arise about how AI technologies handle, safeguard, and ensure the confidentiality of economic data, necessitating a careful balance between innovation and data protection.
AI and ML are pivotal in bolstering cyber resilience within the Financial Services Industry. These advanced technologies can analyse vast amounts of data in real-time, enabling early detection of cyber threats and vulnerabilities, thus enhancing the industry’s ability to address security challenges proactively.
Mohit believes that fostering sustainable IT is imperative in the FSI sector to address environmental risks, enhance operational resilience, and align with rising expectations for corporate responsibility.
AI is crucial in helping FSI organisations achieve sustainable IT, he says. Prioritising sustainable IT practices contributes to long-term economic stability and ensures compliance with evolving environmental regulations, reflecting the industry’s commitment to environmental stewardship.
“Singapore’s commitment to technological innovation and the adoption of advanced technologies like AI have positioned the financial services industry for continued growth and competitiveness,” Mohit concluded. “However, addressing cybersecurity challenges and ensuring the responsible use of AI remain critical priorities for the industry as it navigates an increasingly digital landscape.”
Welcome Address
Singapore’s Financial Services Industry (FSI) has seen remarkable growth year after year, notes John Ng, Director & General Manager of Sales at Hewlett Packard Enterprise. With its substantial contribution to the economy and reputation as a global financial hub boasting diverse institutions, Singapore has cemented its position as one of the top five fintech hubs worldwide. The country is home to over 1,000 fintech firms and attracted a record US$1 billion worth of investments in 2019.
The Singapore government’s commitment to supporting technology adoption, innovation-driven growth, and cybersecurity capabilities has further enhanced the capabilities of existing firms and led to the creation of new industry sectors, such as digital banks and mobile payment providers. Over the past five years, the government has committed over US$250 million to these initiatives, contributing to Singapore’s status as a leading fintech hub.
Artificial Intelligence (AI) has played an increasingly integral role in the FSI sector in Singapore, mainly through the adoption of Large Language Models (LLMs) and Natural Language Processing (NLP). These technologies have been leveraged to enhance various aspects of the industry, including fraud detection, risk assessment, customer service, regulatory compliance, and predictive analytics.
LLMs and NLP analyse large volumes of data to detect fraudulent activities, assess credit risk, improve customer service through chatbots and virtual assistants, ensure regulatory compliance, and predict financial trends and market conditions. These technologies enable financial institutions to make more informed decisions, improve operational efficiency, and stay ahead of the competition.
Hewlett Packard Enterprise (HPE) can assist Singapore’s Financial Services Industry (FSI) sector. He underscores the significance of HPE GreenLake for Large Language Models (LLMs), a cloud service facilitating businesses of varying scales to train, refine, and implement machine learning models. Leveraging HPE’s Cray XD supercomputer, this service delivers an AI software suite, including the HPE Machine Learning Development Environment, to simplify the remote training and deployment of machine learning applications.
Deploying HPE’s supercomputers and AI software, organisations can efficiently train large language models for critical applications in various industries, including finance, healthcare, and legal services. This technology enables businesses to unlock new insights, improve decision-making processes, and drive innovation in their respective industries.
John observes that Singapore’s Financial Services Industry (FSI) sector flourishes due to its dedication to innovation and technology integration. He agrees that the government’s backing of fintech and cybersecurity endeavours has fostered an environment conducive to industry advancement and innovation.
“HPE firmly believes that by embracing AI technologies like LLMs and NLP, Singapore’s FSI sector is primed for continued growth and innovation, solidifying its status as a leading global financial hub,” he concluded. “I an confident that we will get a lot of insights from this meeting that can be implemented in your respective fields.”
Power Talk: How Can FSI Organisations Safeguard AI Capabilities for a Competitive Advantage in the Ever-Evolving Digital Landscape?
As the Executive Director of Data Science at OCBC Bank, Enguerran Dallet has seen the significant potential of artificial intelligence (AI) in the financial services industry (FSI), driving its transformative stages amid market fluctuations.
AI’s advanced capabilities empower FSI entities to modernise operations and secure a competitive edge in the evolving digital landscape.
However, challenges, particularly regarding data privacy and security, persist. Enguerran proposes several strategies and considerations to effectively harness AI and data within Singapore’s Financial Services Industry:
- Data Security: Implement strong data security measures and identity and access management (IAM) protocols to protect customer data.
- Data Quality and Infrastructure: Clean and structure data to mitigate risks and lay a foundation for AI applications.
- Expert Partnerships: Collaborate with third-party experts to bridge technical expertise gaps.
- Comprehensive Assessment: Assess current capabilities thoroughly to identify improvement areas.
- Ethical AI: Emphasise responsible AI practices, ethical considerations, and algorithmic transparency.
- Regulatory Compliance: Implement AI-powered RegTech solutions for compliance.
Implementing these strategies can help Singapore’s financial institutions leverage AI and data effectively, drive innovation, enhance decision-making, and achieve superior outcomes in the FSI sector.
“In today’s highly competitive financial services industry, personalisation is not just a strategy but a necessity for achieving customer satisfaction, loyalty, and overall business success,” believes Enguerran. “Personalisation allows institutions to go beyond generic offerings and tailor products, services, and interactions to meet individual customers’ unique needs and preferences, thereby building trust and loyalty.”
Enguerran acknowledges that AI plays a pivotal role in enabling this level of personalisation. In OCBC Bank, AI-powered algorithms can analyse our vast customer data, including their transaction history, browsing their behaviour, and even their demographic information, to gain valuable insights into their preferences and behaviour, elaborates Enguerran. This kind of analysis allows institutions to provide personalised recommendations, offers, and services that are more likely to resonate with customers, enhancing their overall experience.
One of the key areas where AI is transforming personalisation in the financial services industry is using chatbots and virtual assistants. These AI-powered tools can interact with customers in real-time, providing personalised support and assistance based on individual needs. This improves customer service and frees human agents to focus on more complex tasks, improving overall efficiency and productivity.
By leveraging AI, financial institutions can differentiate themselves, attract new customers, and retain existing ones. AI’s ability to analyse data, predict customer behaviour, and optimise operations leads to increased efficiency, reduced costs, and improved customer satisfaction.
“AI-driven personalisation is key in today’s financial services industry. It enables institutions to meet customer expectations, stay competitive, and drive business growth in a rapidly evolving digital landscape,” ends Enguerran.
David Sharratt, Global Head of Data Product Monetisation at Standard Chartered Bank, highlights the transformative impact of technological advancements on financial services. Over the past few decades, these advancements have reshaped how people interact with money and what they expect from financial institutions, leading to simplified processes, reduced error rates, improved communication, and altered consumer perceptions of money.
Financial organisations are poised to benefit significantly from these advancements, particularly through chatbots and automation. David emphasised that these innovations can reduce labour hours, enhance client connections, and boost profitability. The impact of these technologies varies across functions, but many institutions can adapt and gain from them.
One such transformative technology is blockchain, a digital ledger of transactions distributed across a network of computers and secured through cryptography, David explains. Initially designed for tracking digital currency, blockchain has the potential to revolutionise aspects of the financial services industry. For example, it can streamline processes involved in executing and clearing securities trades, reducing costs and errors associated with manual bookkeeping.
“Artificial Intelligence and Machine Learning have also led to significant improvements in financial services by helping banks automate processes and make informed decisions,” asserts David. “AI is used to identify fraud and illegal activity, while ML helps banks develop new products and services. Based on my experience, those technologies reduce costs and improve the customer experience.”
Cloud banking is another significant trend, enabling institutions to store and process financial data in remote locations. This cost-efficient approach allows access to robust technologies from anywhere in the world.
Embedded finance is a technology that improves the efficiency of financial services, potentially reducing costs for banks by automating processes. RPA automates tasks and processes, reducing manual work and improving organisational efficiency.
“However, these technologies also pose cybersecurity risks,” he warns. “Despite we know that technology is emerging anywhere, we have to be aware of its risk too.”
To safeguard data against threats and ensure data availability, businesses should implement robust security measures, conduct regular security audits, and provide data security in AI systems. Compliance with regulations, employee awareness, diverse dataset testing, error analysis, and backup and disaster recovery plans are essential for protecting sensitive data.
Amit Krishna, General Manager, Compute Southeast Asia at Hewlett Packard Enterprise (HPE), emphasised the company’s readiness to support the financial services industry (FSI) sector in overcoming its technological challenges. HPE offers a range of innovative solutions tailored to the specific needs of the FSI sector, with a focus on enhancing data security, automation, and operational efficiency.
One of HPE’s flagship solutions is GreenLake for Large Language Models (LLMs). This cutting-edge cloud service empowers businesses to train, fine-tune, and easily deploy machine learning models. This service, powered by HPE’s Cray XD supercomputer, provides a comprehensive AI software stack to streamline machine learning application training and deployment processes.
“Organisations can efficiently train large language models for critical applications across various industries, including finance,” believed Amit.
HPE also implements robust security measures to safeguard sensitive financial data. As AI and machine learning adoption continues to grow within the FSI sector, ensuring data security and compliance with regulations becomes increasingly vital.
“HPE’s security solutions, which include encryption, multi-factor authentication, and secure development practices, are tailored to help organisations mitigate cybersecurity risks associated with AI systems,” he reveals.
Moreover, HPE’s technologies enhance operational efficiency and customer service for financial institutions. For instance, HPE’s AI-powered solutions enable the development of chatbots and virtual assistants that improve customer interactions and reduce costs by minimising the need for human intervention in routine banking processes.
These technologies also enable financial institutions to gain deeper insights into customer behaviour and market trends, empowering them to make more informed decisions and maintain a competitive edge in the market.
“HPE’s innovative solutions and expertise can deliver significant benefits to the FSI sector, addressing key challenges and unlocking new opportunities for growth and efficiency,” Amit concluded. “By leveraging HPE’s technologies, financial institutions can enhance their competitiveness and deliver superior services to their customers in today’s rapidly evolving digital landscape.”
Closing Remarks
John Ng expressed gratitude for the participants’ enthusiasm during the session, considering it the beginning of their journey to explore various ideas and innovations poised to reshape the financial industry. He acknowledges the importance of collaboration among companies and stakeholders in fostering innovative and sustainable solutions.
A key topic of discussion centered around the incorporation of AI technology into Singapore’s Financial Services Industry (FSI), with John reaffirming HPE’s commitment to aiding the sector in overcoming its technological challenges. HPE stands prepared to offer customised solutions tailored to meet the distinctive needs of the FSI, particularly focusing on aspects like data security, automation, and operational efficiency.
HPE offers the GreenLake for Large Language Models (LLMs) solution, a cloud service that allows businesses to train, tune, and deploy machine learning models. Powered by HPE’s Cray XD supercomputer, this service provides an AI software stack that simplifies the training and deployment of machine learning applications. By leveraging HPE’s supercomputers and AI software, organisations can train large language models for critical applications in various industries, including finance.
Additionally, HPE provides expertise in implementing robust security measures to protect sensitive financial data. With the increasing use of AI and machine learning in the FSI sector, ensuring data security and regulation compliance is crucial. HPE’s security solutions, including encryption, multi-factor authentication, and secure development practices, can help organisations reduce cybersecurity risks associated with AI systems.
John encouraged experts, professionals, and all participants present to embrace the integration of AI into their operations to enhance efficiency, innovation, and customer experience. He also stressed the importance of adopting a sustainable approach to AI implementation, prioritising factors such as data security and regulatory compliance.
Given the elevated cyber risks in the field, companies must safeguard their data against threats and ensure data availability, especially when deploying cutting-edge technologies like AI, is John’s advice. But despite the risks involved, companies in the financial sector must be prepared to adapt to the rapid changes in the technology landscape, with AI emerging as a crucial tool for maintaining competitiveness in this digital era.
“By implementing AI technology wisely and responsibly, companies can optimise their operations, enhance data-driven decision-making, and deliver superior customer service,” John concludes.
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In the fast-evolving landscape of alternative investments, the convergence of technology, especially artificial intelligence (AI) and digitalisation is reshaping strategies, opportunities, and challenges. At the Alternative Investment Management Association Singapore Annual Forum, Ms. Gillian Tan, Assistant Managing Director at the Monetary Authority of Singapore (MAS), shed light on the pivotal role of technology, and how it is driving innovation and reshaping investment strategies in the realm of alternative assets.
Reflecting on the challenges faced in the preceding year, including geopolitical tensions and supply chain disruptions, Ms Tan noted the resilience of global financial markets. Despite these headwinds, the alternatives sector demonstrated robustness. She emphasised the pivotal role of technology and AI in navigating through such challenges and driving resilience in investment strategies.
Delving into the burgeoning role of AI within the alternatives sector, Ms. Tan highlighted its transformative impact on investment strategies and portfolio management. The adoption of AI-powered algorithms and predictive analytics has empowered asset managers to identify trends, mitigate risks, and optimise investment decisions with unprecedented precision. AI-driven insights are revolutionising traditional approaches to asset allocation, enabling managers to extract value from vast datasets and navigate complex market dynamics with agility.
Ms. Tan underscored the pivotal role of AI as one of the primary mega forces shaping the future of alternative investments. Beyond its application in investment strategies, AI is poised to revolutionise various facets of the industry, including risk management, compliance, and client servicing. From sentiment analysis to algorithmic trading, AI-driven solutions are driving operational efficiency and enhancing decision-making processes across the investment lifecycle.
Technology is playing a crucial role in accelerating the transition towards a sustainable future. By leveraging AI-powered data analytics, asset managers can identify and evaluate sustainable investment opportunities, ranging from renewable energy projects to green infrastructure initiatives. Tech-driven ESG (Environmental, Social, and Governance) screening tools enable investors to align their portfolios with sustainability objectives while optimising returns.
The convergence of AI and blockchain technology is catalysing the growth of the digital assets ecosystem. Predictive models enhance risk assessment and investment decision-making in digital asset markets, while blockchain facilitates transparent and secure transactions. MAS’s initiatives, such as Project Guardian and the Global Layer One initiative, are driving innovation in digital asset tokenisation and cross-border transactions, leveraging AI for enhanced operational efficiency.
Looking ahead, Ms Tan emphasised the transformative potential of generative AI (Gen AI) in reshaping asset management practices. Gen AI, with its ability to process vast datasets and generate content autonomously, promises to revolutionise portfolio optimisation, content generation, and client engagement. However, she cautioned against the inherent risks of AI, including data bias and algorithmic opacity, underscoring the importance of robust risk frameworks and ethical AI governance.
As the financial sector integrates Gen AI into its operations, careful consideration must be given to its ramifications on employment and skill requirements in Singapore. A collaborative effort between MAS and the Institute of Banking and Finance Singapore (IBF) will see the initiation of a joint study.
This research aims to pinpoint key uses of Gen AI, evaluate its integration and growth in financial services, and examine its impact on jobs and required skills. By doing so, it will inform strategies to enhance and adapt the financial workforce, enabling them to harness Gen AI’s transformative potential and transition effectively into new career paths.
As the alternative investment landscape continues to evolve, embracing AI and digital innovations will be paramount to unlocking value and driving sustainable growth. By harnessing the transformative potential of AI, asset managers can navigate complexities, capitalise on emerging opportunities, and deliver enhanced value to investors.
With technology as the cornerstone of innovation, the future of alternative investments promises to be characterised by agility, resilience, and unparalleled insights, propelling the industry towards new horizons of success.
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The collaboration between Persatuan Penyedia Infrastruktur Telekomunikasi Malaysia (PPIT) and Indonesia’s Asosasi Pengembang Infrastruktur dan Menara Telekomunikasi (ASPIMTEL) signals a significant advancement in addressing the digital infrastructure challenges faced by both countries.
As telecommunications infrastructure providers, PPIT and ASPIMTEL have signed a memorandum of understanding to bolster cooperation between their respective markets, specifically focusing on densifying 4G digital infrastructure and deploying new 5G networks.
An industry trend analysis report highlighted the potential impact of this partnership on expediting the development of 5G infrastructure across Malaysia and Indonesia. The report noted a previously bearish outlook on capital expenditure for 5G rollouts in Indonesia, with domestic mobile network operators (MNOs) seeking incentives from the national telecoms regulator to accelerate adoption.
Challenges such as high rollout costs due to complex geographies and a shortage of the latest 5G semiconductors have hindered progress in Indonesia. However, the collaboration between PPIT and ASPIMTEL offers a promising solution to mitigate these obstacles.
Both Malaysian and Indonesian MNOs view 5G as a means to revitalise average revenue per user (ARPU) figures amid evolving consumer demands. While the partnership primarily focuses on upgrading and expanding 4G infrastructure, experts anticipate that the substantial subscriber base forecasted for 4G technology – 296 million in Indonesia and 37.4 million in Malaysia by 2025 – may create some resistance to transitioning to 5G.
Nevertheless, it is believed that the partnership’s emphasis on infrastructure enhancement could lead to more competitive pricing for 5G packages, thus driving greater consumer adoption rates. Despite expectations for reduced prices, significant price cuts are not anticipated, as operators aim to leverage 5G to boost ARPU figures.
Moreover, while concerns about affordability persist, the adoption of 5G is expected to be concentrated in urban centres where tech-savvy consumers demand high-speed connectivity for latency-sensitive applications like gaming and streaming.
Looking ahead, a substantial growth in 5G subscribers for both Malaysia and Indonesia is projected. By 2032, Malaysia is estimated to have approximately 34 million 5G subscribers, while Indonesia is expected to have around 197.2 million, representing 59.4% and 54.4% of total mobile subscribers, respectively. These assessments indicate a healthy compound annual growth rate of 31.3% for Malaysia and 39.4% for Indonesia from 2023 to 2032.
Last year, PPIT and ASPIMTEL signed a groundbreaking MoU to advance digital cooperation, marking the first collaborative effort of its kind between Malaysia and Indonesia and underscoring their joint commitment to fostering digital progress and improving regional connectivity.
This partnership demonstrates a commitment to sharing expertise in technology roadmaps, including 4G densification and deploying 5G networks, along with innovative designs and processes for telecom infrastructure. Additionally, discussions will cover rural connectivity and other vital aspects to enhance telecommunications infrastructure in both nations.
PPIT and ASPIMTEL aim to strengthen their countries’ commitments to sharing innovative knowledge in the telecom sector. The MoU fosters enhanced cooperation, setting a precedent for future collaborations aimed at advancing digital inclusion and connectivity across Malaysia and Indonesia. Through this alliance, both nations leverage strengths to address common challenges and drive sustainable telecom development.
The MoU signing signifies a major milestone in fostering regional cooperation in telecom infrastructure. PPIT and ASPIMTEL are set to facilitate cross-country knowledge sharing, fostering a collaborative environment for digital innovation. This partnership highlights Malaysia and Indonesia’s joint commitment to digital advancement and connectivity in the region.
The PPIT-ASPIMTEL partnership showcases the collaborative effort needed to tackle digital infrastructure challenges in emerging markets. By combining resources, they can expedite 5G deployment, fostering economic growth and innovation
As they navigate the transition to next-generation connectivity, policymakers, industry stakeholders, and consumers must work together to ensure that the benefits of 5G technology are accessible to all segments of society.