Wow, it’s already February? I guess it’s true what they say, time flies when you’re disrupting an industry. Our new APAC hub is up and running, we launched our managed cloud platform service Backbase-as-a-Service, with more in store in 2020 as we gear up to shape the digital banking industry across Asia.

But in order to see where we’re going, we first have to create a benchmark from where we can lift off. So to help identify today’s digital banking landscape and its trends & threats, I’ve collected 7 articles and my thoughts on the digital journey of banks in Asia.

1. Tech Wire Asia: How can Vietnam’s e-commerce players foster greater market growth?

Despite the country’s relatively limited digital infrastructure, Vietnam is a force to be reckoned with. As one of Asia’s most promising e-commerce markets, Vietnam has reached close to US$15 billion in profit last year. But with more and more consumers favouring foreign e-commerce retailers like Amazon over local ones, how can Vietnam’s e-commerce players foster growth? This article suggests a people-first approach, where local players review business models, operational efficiency and logistics to win back customers. I wonder where we’ve heard this before?

2. Business Insider: Vietnam surges to the front of Southeast Asia’s fintech race

Another shout-out for Vietnam’s rising digital economy was published in Business Insider, where it revealed a great promise for growth in the country’s financial services and fintech industries. To help achieve this growth, the race for market-ready talent is on, resulting in a growing salary forecast of 15-20%.

In fact, at the Finance Vietnam 2020 Conference & Awards in Hanoi on 19 March, I will be sharing Backbase’s newest report with IDC on our 2025 outlook for financial services in Asia and Vietnam – revealing trends, predictions, banks who are reinventing their digital strategy, and attributes of neobanks and digital-first players.

3. Vietnam Plus: Retail banking service becomes a trend among commercial banks

Retail banking is playing an increasing role in the development of the commercial banking sector. By adopting a digital-first approach, traditional banks are able to expand and tailor their product offering, driving revenue growth rate, business results and service quality, among others. We have seen TP Bank as a classic example of this where they have leveraged on the Backbase platform to achieve all of this and more.

4. Moving banking beyond the prison paradigm

Banks who still believe in the bars of the prison paradigm, where customers remain complacent and regulators halt the rise of challenger banks, will be in for a rude awakening. In this piece, Jouk Pleiter shares the blueprint on how banks can escape assumptions and thrive in today’s Neo Reality.

5. Techwire Asia: Thai central bank keen to lay foundation for digital banking in the country

Although Thailand may not have the digital capabilities of regional peers such as Singapore, Hong Kong and Malaysia, the Thai Central bank is setting up to offer more digital banking services to the people. To get it’s digital ecosystem on par with overseas markets, thai officials have identified three key pillars needed to build digital banks.

6. Business Inquirer: Shift Happens

In this piece from Business Inquirer, Ira Pedrasa exposes the steps that rural banks in the Philippines need to take in order to fully service their customers. By shifting from product to people and adopting a digital-first approach, banks can drive customer engagement, and therefore, revenue. This holds true for Bank of the Philippines Islands where we have seen them using Backbase to transform their entire digital customer experience.

7. Seamless Onboarding & Origination

In today’s Neo Reality, big tech and challenger banks are winning over millions of customers through tailored digital onboarding experiences. For incumbent banks to regain their continuing loss of market share, they must solve the major pain point of onboarding & origination. This demo, performed live at Backbase Connect 2019 by VP of Strategy Tim Rutten, shows incumbents how they can do this.

 

ABOUT THE AUTHOR

Riddhi Dutta is the Regional Head for ASEAN & India at Backbase.

Riddhi oversees Backbase’s sales and go-to-market success for his territory in Asia Pacific. He helps financial institutions turn their digital ambitions into reality, helping them with designing digital transformation initiatives which are feasible, tailored, and creative with instant business value.

Riddhi has an excellent track record of championing legacy modernisation initiatives in several banks across the region, where he consulted and helped banks move to open banking platforms, including modern core banking and treasury solutions. Prior to joining Backbase, Riddhi held several senior roles at Infosys Finacle, Fintellix Solutions and ITC Infotech.

Riddhi earned a Masters of Business Administration in Marketing and Systems from the University of Delhi.