Fintech boom in banks
Singapore’s biggest banks are donning their new digital weapons through chatbots, apps, and Ai-powered digital banking services.
Singapore remains a top global fintech hub, alongside London, according to Deloitte. UOB Kayhian noted that currently, there are more than 400 fintechs operating in Singapore, many whom chose to set up their regional HQ here. Meanwhile, the MAS has committed also committed $225m to support the Financial Sector Technology & Innovation (FSTI) Scheme over the next five years. Needless to say, Singapore’s banking industry has benefitted the most in the city’s fintech boom.
DBS has launched mobile-only Digibank in India and Indonesia. OCBC has experimented with using AI to handle home loan enquiries, wealth management advisory and regulatory compliance.
UOB Kayhian identified two fintech business models, namely, competitive, which directly challenges incumbent banks, and collaborative, which enhances their positions.
Those in the latter gathered more traction. Investment in collaborative fintech companies increased 138% as fintechs increasingly view incumbent banks as potential partners.
As a result, banks have also seized the opportunities by collaborating and investing in fintech companies. Amongst fintech companies, those within the banking & payments subsector took the lion’s share at
54%. DBS has redesigned its IT infrastructure, leveraging on big data, biometric and AI to make banking simple and seamless for customers.
Customers are serviced by an Aipowered virtual assistant created in partnership with Kasisto, a spin-off from the creator of Siri. The virtual assistant is able to handle 80% of customer requests without human intervention while the balance 20% of customer requests go to live chat sessions. UOB Kay Hian said that the upgrade has acquired 1.5 million new customers and 450,000 savings accounts.
Rise of the robo-advisors
DBS also developed iwealth for its wealth management business. Through this, users conducted banking transactions, accessed researches and analysis, and managed and traded a portfolio of stocks and funds. A mobile platform was launched in 1H2017.
In January, OCBC launched
Emma, an Ai-capable chatbot.
OCBC reported that the bot was able to answer questions on home and renovation loans with a total debt service ratio (TDSR) calculator. OCBC recorded that more than 10% of chat sessions have been converted to home loan sales prospects. The bank also launched the algorithmbased robo-advisor that guides clients in their investment journey. Clients first complete a questionnaire, which determines their risk profile and investment goals. Thereafter, clients are advised to invest in one of five portfolios of ETFS and a thematic basket of stocks listed on the NYSE and NASDAQ. The platform will monitor the chosen portfolio and conduct regular rebalancing of an investment portfolio.
OCBC also tapped AI and machine learning to combat money laundering and terrorism financing. Its software detected suspicious transactions by assessing broad parameters.
Meanwhile, UOB launched its
UOB Mighty app which allows contactless payment for Android phones, which was made to Malaysia and Thailand this year. It also leveraged social messaging apps and injected into them its fund transfer app called UOB Mykey. From UOB Kayhian
Amongst fintech companies, those within the banking & payments subsector took the lion’s share at 54%.
Customers can locate nearby ATMS through a digital virtual assistant
Emma has responded to over 39,000 queries