Top Technology Predictions by Fintech dynamics in Asia

Information Technology Press Releases Thursday October 5, 2017 16:15
Bangkok--5 Oct--Mind PR

The first all-industry fintech forum in Thailand achieved record participation by various technology and financial experts. Tagged as "Fintech Dynamics in Asia 2017", the forum was held on 18 July2017 at the Dream Office of Casean in Bangkok, Thailand. The exclusive forum was to designed to bring together various groups involved in financial technology for networking, for sharing experiences, and for learning about new technology trends to watch.

Co-hosted by TCC Technology, Thai Fintech Association, and IDC Financial Insights Asia/Pacific, the Fintech Dynamics in Asia attracted more than 70 participants including policymakers, technology experts, financial experts, and entrepreneurs. The forum represented a new level of joint effort among fintechs in Thailand as well as a major technology infrastructure provider like 'TCC Technology'.

Key to the success of the forum was the involvement of the Thai Fintech Association, which has now become a focal point in fintech innovation in Thailand, with strong support from fintechs and start-ups, regulators, and financial services institutions (FSIs) in Thailand.

The Fintech Dynamics in Asia opened with three key sessions: first, an introduction of TCC Technology objectives which focused on their initiatives and proposed infrastructure technology offerings to support fintech growth; secondly, u an update on the landscape for fintech in Asia/Pacific and a conceptual framework for industry-wide collaboration to accelerate fintech success; and third, a knowledge-sharing session where panelists pointed to how fintech offerings must be especially tailored to the needs of the end customer, all to enable customer adoption and utilization.

A key part of the discussion was how many awareness of the business, social and economic disruptions happening in Thailand and in the rest of the world. All these will influence the business models of these fintechs. Fintech startups also need to consider the right technology partners in order for them to respond well to these disruptions. For its part, TCC Technology also underlined how it is equipped to help the fintech community to fulfill the need to develop technology platforms and to ensure reliable delivery of services from ideation, development, to execution.

IDC Financial Insights responded to the need to talk about the big shifts in the market, by referring to its key predictions for financial services, part of its FutureScape portfolio of documents that feature the most significant trends to watch in the financial services industry:

Top technology predictions
1. Behavioral analytics across compliance, fraud and cyber detection/prevention will be in place in 15% of banks in 2017 to help avoid regulatory fines and sanctions.
2. By 2020, blockchain/distributed ledger technology will be adopted by 20% of trade finance globally.
3. By 2019, cloud adoption will reduce infrastructure spend by25% among top-tier banks.
4. By 2018, there will be a 15% increase in worldwide mobile payments using Near Field Communication (NFC), reflecting continued uncertainty in who will "own" the device.
5. Disruptive technologies including cognitive, robotic process automation, and blockchain will be in use at 50% of banks worldwide by 2020, accelerating digital transformation by 30%.
6. Investment in 3rd platform and innovation accelerators will grow at twice the rate of overall FSI IT spend through 2020 as global IT spending surpasses half a trillion.
7. In an effort to boost live chat customer interactions, 20% of banks will begin proof-of-concept projects to integrate conversational interfaces in their omni-channel strategy in 2017.
8. By 2018 virtually every wealth management and capital markets firm will have built or licensed a robo-advisor platform or leverage artificial intelligence to manage funds.
9. By 2019, Usage Based Insurance (UBI) enabled by Internet of Things (IoT) will account for at least 15% of the global vehicle insurance market and 10% of the global home insurance market.
10. While widespread adoption will be slow, in 2017 cognitive technologies will be deployed in 15% of banks, providing consumers with "voice banking" on numerous devices.
Technologies required by fintech

At present, the financial services industry, including fintechs, requires a whole set of new technologies that improve "everything in bringing a product or a service to market": from infrastructure, to processing, to application development, to workflows, and application functionalities. Traditional financial services institutions are seen to be at a disadvantage because of the legacy technologies that they have to maintain, while at the same time evaluating what technologies to integrate and incorporate into their future technology lay-out.

Fintechs, meanwhile, are able to respond much better to the new requirements of the market, as they do not have high legacy burden. They are the easy beneficiaries of the new technologies available. They recognize first for example that tasks once handled by a combination of notes, personal computers, workflows, and manpower are now being delivered effectively by new technology interfaces. Furthermore, startups see that most types of financial activity, including payments, wealth management, lending, and refinancing are all using advances in business intelligence and analytics to analyze and predict customer needs as well as to prescribe the right course of action that will allow a fintech to win the customer. The top technologies that participants in the forum cited to have the most promise to win the market faster and more effectively include:

1. Artificial Intelligence (AI)
2. Machine Learning
3. Data Science and Advanced Analytics
4. Cloud services

The three top areas – categorized under a broad definition of "data analytics" speaks of the future of organizations reducing costs associated with analyzing data manually or with a great deal of human intervention. These technologies will also be able to further develop the product with a great alignment to customers' needs. In order to put AI and Machine Learning into practice, fintechs believe that they must acquire data from transactions (as extensive and as real-time as possible) that would also require a reliable platform to interface, collect, and store all these data. This is the reason why the fourth key priority of reliable cloud platforms and cloud services makes sense.

Some Opportunities: Data and Cloud

IDC Financial Insights indicated that analytics will be used across various enterprises and use cases. This will result in the upsurge of demand for real-time, accurate and valuable data that will be useful for customer interactions.

IDC Financial Insights also introduced the concept of data monetization, that ultimately brings banks and fintechs to ask if and how they can build data businesses. In the data monetization framework, organizations will build data pipelines in and out of the organization, and exchange value for data, provided that monetary exchange makes sense. "What makes sense" is important to underscore here: some exchange of data might be made without any monetary exchange. A greater understanding of the customer based on shared data might be pursued for its own sake.

Moreover, FSIs can use crucial customer data by opening APIs to fintechs and other trusted third parties. This type of openness to how data is acquired, used and delivered will make fintechs and traditional FSIs to jointly deliver services/products at the right time and place to the benefit of the customers.

In terms of cost efficiency, the cloud computing model has clearly shown how traditional capital expense-based investments is now converted to operating expense-based (as-a-service, pay-per-use) spending. It enables fintech to deliver products and services to customers at a more reasonable cost. Even for traditional players, the benefit is obvious: the greater adoption of technology platforms built on the cloud will result in less spending on less capex, allowing them to spend on innovation and digital transformation.

Challenges Discussed
The Fintech Dynamics in Asia also discussed some challenges that fintechs face as they attempt to scale up in Thailand.

One concept mentioned was the 3U conceptual framework, which was introduced by IDC Financial Insights at the forum for assessing whether a fintech startup will most likely succeed or fail. IDC Financial Insights'framework involved the three Us of Utility (usefulness), Usability (user-friendliness), Ubiquity (easy access to service). This was validated in the discussion among fintechs who admitted to struggles in ensuring that they meet the 3Us framework. This is probably reason why In terms of 'go-to-market' for innovation from both fintech and FSIs, IDC reported that it typically takes 1 year for a fintech-to-bank/insurer collaboration to go to market.

Some resolutions to challenges were also discussed. It is important to select the right solutions and offerings there are so many types of technologies from which to choose. Making the wrong decision can result in additional problems instead of fixing those challenges the technology was designed to solve.

Other requirements that will feature more prominently in the agenda of traditional services providers and fintechs include:
• An ability to quickly expand and extend the edges of the IT infrastructure – as the bank works with new partners (fintechs, agents, providers of data and services)
• Proactive security strategy as the organization moves to working on multi- and hybrid-clouds, accommodating many new external partners
• A data-centric approach to infrastructure modernization, considering that data monetization is impossible without reliable and accurate data.
• Higher standards for uptime and reliability of the data center, since the data center becomes a key asset to support data monetization.
• New approaches in data governance: policies related to access, use, and security of all resources – including the network – should be more efficiently enforced.

Lastly, the forum focused on how finding the right strategic partners are similar to finding your co-founder or key hires. It is important for fintechs to remember that they will be working closely together with partners, so it is important to have good connections. Making sure that technology partners are on the same page greatly improves chances, productivity, and the ability to serve intended customers that will inevitably accelerate business. The technology partner should provide flexibility as well, to for example, by giving consulting and advice in building or architecting solutions fit for the market. This is particularly true for technology infrastructure vendors, in how the right partner should provide flexible platforms for developers to design, test and deploy their services. To this end, TCC Technology stated that it not only can provide premium data center services that are reliable but that the company also provides public and private optimized cloud with high security systems. Please visit here : {link to https://https://goo.gl/3azHEa


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