Asia-Pacific banks need to learn from fintechs and evolve digitally

WHILE the world is currently experiencing unprecedented upheaval due to the Covid-19 crisis, the Asia-Pacific banking and financial services industry is reaching a tipping point in many regions, with the "digital banking revolution" on the near horizon. Banks, lenders and other financial institutions need to be prepared to make some transformative changes to stay relevant and competitive.

Even while economies are suffering and business is uncertain due to the pandemic, banks need to be moving forward with their digital strategies to ensure they are not left behind when the world eventually settles into the "new normal". The biggest mistake any bank can make right now is to do nothing - every business needs to be looking at how they can evolve with the times and capitalise on the opportunities on offer.

In Singapore, the Monetary Authority of Singapore (MAS) is currently evaluating 14 applications for digital banking licences - whittled down from the 21 that were received - for the five licences on offer, and while it has announced the decision process will be delayed until the second half of the year due to the pandemic, it is expected that the successful players will commence operation before the end of 2020. This is an exciting time for the Singapore banking and financial services industry, and many other countries in the region will look to Singapore to identify what works - and what does not.