The change of fintech’s entry in Southeast Asia on personal banking

In 2015, Singapore central bank has decided to turn the country into the Asia’s fintech hub. This action has made the word ‘fintech’ becomes more known in business world across Southeast Asia. It’s been awhile for Southeast Asia in riding the international development of financial technologies coattails. However, with other countries implementing new regulatory framework, Southeast Asia targets to become a new fintech leader in the global.

According to the report by Gomedici, 39 per cent of the world’s population does not have a bank account. Thus, how exactly fintech could change the landscape of personal banking in Southeast Asia. The emerging fintech startups in the region recently can provide few ways for the fintech to change an individual to manage finances and we take Singapore as a model.

 

Increasing demands for personalised investment platforms

From day to day, there are more and more people want to handle their investment portfolio. It’s the bank and investment advisors who manage a client’s account responsibility to prepare with advisory services and tutorial. With improvements in machine learning, investment calculations analyse a customer’s financial strength and goal and propose plans and programmes that best fits their need.

As in Singapore, the underlying advance toward this path would be similar to what Tradehero is doing. By utilizing real life information in a virtual situation, brokers get advice from specialists on trading real stocks, however utilizing virtual cash, in this manner, giving zero risks. Knowledge-sharing by real specialists and by means of crowdsourcing grooms these rookie trades into expert capital investors.

 

Payment and lending will be critical

In countries where a larger part of the population has no bank account, payment and loaning will be critical areas of development, bringing financial services to rural regions. A majority of the ASEAN rural people battle with payment for work done and building up a credit line. Enormous money transactions are unsafe and burglary inclined. For years, banks have tried to penetrate this market with little progress because of trouble in setting up physical branches and logistics costs.

Nowadays, in the advent of smartphone, rural areas have an access to internet and make an opportunities for them to use mobile wallet and online credit. As an example, FlexM which advocates payroll through virtual wallets and prepaid MasterCard. This makes it potential for customers and employers to pay the employee without depending on large money transactions. Payment is obvious in a split second and trackable by both employer and employee. This also makes a situation where cashless transactions for products in rural territories functional and convenient.

 

Accelerator programs and fintech integration from banks

One of the greatest issues that emerge with the newly discovered popularity of fintech faced by banks is the unbundling of their product and services by new businesses. Steps have been taken by traditional banks in order to become competitive such as launching accelerator programmes like UOB Finlab. In this program financial technologies startup get seed cash in return for value stake. From the perspective of the personal banking, one change that this will prompt better customer confronting interfaces.

Clients may be urged to utilize services by employing gamification technique combined with understandable and clear UX/UI. There will be advances made in customized financial and investment management as well with banks coordinating these services with client account and credit cards; giving clients more control over their portfolio while opening new income channels for banks by means of advisory and tutorial services.

In conclusion, fintech has made a major change in the banking institution in Southeast Asia. But from the perspective of personal banking, this has brought an increasing current standards of what a client expects from a financial site. Opening up new financial markets in rural areas and previously ignoring demographics, personal banking is poised for an exciting future as seen in recent developments in the financial technology sector.