Digital Disruption and its Impact on Asia’s BFSI Sector
Jun 27, 2017
With rapidly advancing technologies, evolving customer expectations and a changing regulatory landscape, Digital disruption within the BFSI sector in Asia is driving companies to look at new ways to innovate.
I am seeing many examples of cutting-edge services deployments from Financial institutions such as OCBC, UOB and AXA who are riding the digital transformation wave;
OCBC Bank became the first bank in Southeast Asia to use Blockchain technology to make local and cross-border payment fund transfers. The pilot transaction took place between the bank and its subsidiaries, OCBC Malaysia and Bank of Singapore, using a payment Blockchain solution jointly designed by OCBC Bank and local banking payment solutions company BCS Information Systems (BCSIS). After full integration of this payment solution, OCBC is able to send inter-bank payments between banks in Singapore and overseas without requiring a payment intermediary, this is a significant cost benefit to the customers and Bank alike.
This breakthrough service allows users of the existing UOB Mighty mobile banking app to use their smartphone as a digital security token instead of having to rely on a separate device. For customers, this means they will have access to their banking services at times they would not usually have their security token available. A further benefit is that customers will no longer have to wait for an OTP to appear on their phone and key the number into a security token, thereby saving the customer time as well.
Continuing the theme of personalised insurance based on customer behaviour, AXA Insurance launched its “Pay-As-You-Grab” policy (PAYG) for Grab car drivers, the first-of-its-kind in Southeast Asia. The policy aims to save drivers money on their insurance premiums by calculating the cost on a ‘per kilometre’ basis instead of a single fixed fee.
With these services, the underlying infrastructure to support these platforms securely across cloud data centres becomes even more critical. Providers need to deliver top-notch security, while maintaining low latency, long-term scalability and performance. These often contrasting requirements become increasingly challenging with exponentially growing consumer demand and adoption.
I believe that Fintech is poised to radically change the services provided by the Financial industry in the near future, providing services that might not have been achievable previously. The marriage of technology and Finance is an evolution that Juniper is proud to be part of; by providing highly programmable, secure and high performance cloud networks.
This is part of a series about innovation in the FSI sector that was originally published on CIO Asia and sponsored by Juniper Networks. Read the full article here: Asia’s Most Innovative FSI Services