Digitalisation has ushered in the most disruptive time in banking and finance history. The adoption of fintech services has risen steadily from 16% in 2015 to 64% in 2019. Three in four customers globally have used at least one type of mobile or digital banking service. At the end of 2019, neo banks in the United Kingdom nearly tripled their customer base to almost 20 million, while Bank of America reached 38.3 million active users in its digital channels. About 33% of customers in Hong Kong and 31% of customers in Singapore open bank accounts through digital channels, according to Asian Banker Research. The unfolding COVID-19 pandemic has further accelerated the trend of digital adoption by first-time users and increased transaction by active ones.
Traditional financial institutions are increasingly adopting open banking APIs, artificial intelligence (AI) and other digital technologies to acquire and retain customers. At the same time, the virtual banking arena has become more competitive as more countries license digital-only banks. With technology and innovation in their DNA, virtual banks pose potential opportunity for collaboration and competitive threat to traditional institutions as they promise better customer experience through frictionless processes and an enhanced ability to understand and meet customer needs in real-time.
In this RadioFinance session, we will explore how both traditional and new players embrace this inevitable change and equip themselves with the right strategies and capabilities to win.
The discussion will focus on the following:
Managing Editor, The Asian Banker
The COVID-19 Series is a collection of radio sessions that will be broadcast live on social media platforms to about 30,000 listeners in the financial services sector to survey the impact of the pandemic across the globe, potential aftershocks businesses may face and possible line of action in the days ahead.