While the pandemic was a key driver for much of this transformation initially, today this digitisation is being driven primarily by consumer demand, with customers expecting instant and reliable access to financial products that are tailored to their specific wants and needs. We call this ability to access personalised banking anywhere, anytime ‘banking at the speed of life’, and it is what today’s consumers have come to expect.
As we move into 2022, we anticipate the rapid rate of transformation will continue – and in fact accelerate further - with the entire banking and financial services industry looking to make bold choices to respond to changing consumer expectations and keep up with evolving regulatory frameworks across different markets.
For Mambu APAC, we’re expecting a roaring 2022, with plans to double our team, cement our presence in key markets and continue rolling out innovative and market-leading products to our customers.
Trends to watch in APAC during 2022
Continued innovations in payments
The payments industry has been in a state of constant change and innovation over recent years, with solutions such as Buy Now, Pay Later (BNPL), mobile payments, QR code payments, and new cross-border payment agreements improving access to financial services for millions of consumers who may otherwise be formally classified as ‘unbanked’. In 2022 – and beyond – we can expect to see continual improvements and new innovations in payments, particularly as regulations catch up to technology.
Tech giants like Uber, Google and Amazon have all been offering embedded finance solutions for many years, however, now we’re seeing companies of all sizes – and from all industries – making a play for this lucrative space, offering innovative embedded finance solutions to their customers. These ‘one-stop-shop’ solutions provide low-cost, practical, and accessible financing opportunities, particularly for the micro, small and medium enterprises (MSMEs) that will play such a crucial role in the APAC region’s economic recovery.
Hyper-personalised customer experiences
While challenger and neobanks launching fully digital entities are starting out with the customer as their focal point, for more established, traditional banks this customer-centric approach can require a significant pivot. Segmenting consumers by simple data like age, location and earnings just doesn’t provide enough insight into what customers really want and need from their bank. By utilising powerful technology like artificial intelligence, data analytics and machine learning, banks can understand more about their customers and subsequently serve up highly personalised financial solutions that are exactly what their customers need, at the time that they need them.
Powerful fintech / bank collaborations
Just a few short years ago, banks and fintechs saw themselves very much on opposite sides of the fence. Today, however, banks must be open to collaborating with high-performing fintechs in order to capitalise on the powerful technology solutions that are already in the market. Trying to reinvent the wheel, in a technology sense, is time consuming and a waste of resources. Banks need to embrace the ecosystem approach, where they collaborate with a range of different fintechs and technology providers to create their ideal product, in order to compete with the new breed of banks and financial providers in the region.
On behalf of the entire Mambu Asia Pacific team, we would like to wish everybody a safe, prosperous and healthy new year.