Three months into the year 2024, it is clear that the following months are poised to usher in significant banking transformations across the Asia-Pacific (APAC) region. With a notable surge in digitization, countries such as the Philippines, Cambodia, Myanmar, and Thailand are witnessing a widespread adoption of digital payment and lending methods among their tech-savvy customer base. Notably, the imperative for digitization is being recognized not only by customers but also by governments and regulators throughout APAC.
Financial institutions, including both traditional banks and fintech companies, are increasingly embracing modern technology platforms. These platforms empower them to evolve rapidly to meet the evolving demands of end-users, all while mitigating the strain on capital expenditure (CAPEX).
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Five features needed in modern banking platforms for Asia Pacific region |
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Context-awareness: These platforms exhibit the capability to offer frictionless, omni-channel experiences, tailoring services based on contextual understanding. |
Dynamic Propositions: The ability to launch segment-specific propositions on the fly, responding swiftly to market demands. |
Ecosystem Leverage: Banks are tapping into fintech and technology ecosystems, fostering collaboration and innovation. |
Unified Data Model: Creating a singular data model to infuse intelligence across applications, providing a holistic view for more informed decision-making. |
Environmental Sustainability: Empowering customers to drive environmental sustainability, aligning banking services with eco-friendly initiatives. |
Built upon composable architecture and hosted on the cloud, these platforms offer banks the agility to launch segment-specific propositions swiftly, enhance adaptability, and scale rapidly. By embracing open finance enabled ecosystems, banks can diversify into new markets, revolutionize operations, and cater to customers through tailored offerings.
The advent of context-aware banking platforms enables personalized experiences, utilizing behavioral modeling for real-time insights, targeted offers, and relevant product suggestions. These platforms seamlessly integrate frictionless and omni-channel experiences into customers’ daily lives.
Central to these advancements is the pivotal role of data and intelligence. These platforms provide banks with a comprehensive view of risks, empowering them to make well-informed decisions. Generative AI, with applications in underwriting and lending, is poised to revolutionize processes such as data extraction, document classification, email intent analysis, and a version of LoanGPT to support credit underwriting.
In a significant milestone, iGCB successfully launched the world’s most comprehensive Open Finance-enabled Retail Banking and Credit Platform in 2023, garnering global recognition. Leveraging a composable architecture with events, microservices, APIs, cloud, and AI in a headless manner, this platform is already making waves among leading global and APAC banks.
Author: Paramdeep Singh , Head – APAC, iGCB, Intellect Design Arena
