Building a unified banking interface
FOR digital banks to realize their ambitions to revolutionize banking in Southeast Asia, we need a blueprint with a clear objective: TO CREATE A fiSCAL ECOSYSTEM THROUGH A UNIfiED BANKING INTERFACE, MAKING IT EFFORTLESS FOR ANYONE, ANYWHERE, TO ENGAGE IN BANKING ACTIVITIES AND explore new avenues for income.
S”ch a platform creates m”t”al benefits for a partner, the end customers who become o”r c”stomers, and us, the digital bank. The ecosystem it creates is a symbiotic relationship between the bank, its partnersL and its ”sersN The approach is not just to offer banking services; it’s about creating a comprehensive platform where customers can seamlessly access a wide array of financial products and servicesN
We are at a point of inflection where the regulators’ number one agenda is digitalization. Digital transformation is cr”cial to developing a banking interface that is accessibleL convenient and capable of meeting the diverse needs of Southeast Asia’s burgeoning market.
The market is responsive. In the Philippines, with no legacy of traditional banking and therefore no existing customers, UNO Digital Bank has acquired a million customers and amassed $100 million in deposits in the 15 months since its commercial la”nchN
The bank estimates that for slightly less than a third of these customers, it is the first time they have opened a bank account. That’s a testament to the ability of digital banks to grow rapidly and that the market is receptive to a new banking paradigm.
Furthermore, it is a testament to the potential of a digital banking platform to attract and retain a s”bstantial c”stomer base if it offers innovative and relevant financial products.
As one of the first financial technology companies to obtain a digital banking license, central to UNO Digital Bank’s strategy is the ”se of partnerships to expand the bank’s reach and enhance its service offerings. UNO Digital Bank’s collaboration with GCash in the Philippines is a ground-breaking partnership that exemplifies the power of synergistic relationships to expand financial access.
Through the provision of tailored products, GCash users could now seamlessly open and avail themselves of UNO Digital Bank’s deposit prod”cts within min”tesL bypassing the eKYC process. This ill”strates the effectiveness of strategic alliances to drive forward c”stomer acq”isition and prod”ct adoption for digital banks.
Artificial intelligence (AI) and technology play a pivotal role in realizing the vision of a unified banking interface. AI is transforming customer interactions and back-end operations, making banking more personalized and efficient. In one sense, it is used to change the complexion of an interaction with a c”stomerL and the second part of it is ”sed for the automation of back-end processes. AI helps create a more dynamic and responsive banking environmentN
Technology could also help address the deeper, systemic challenges that restrict credit access. It offers an opportunity to reimagine the framework of credit inclusion, affording us the potential to redefine and expand access to formal lending services so that it isn’t j”st an aspirational but a tangible goal.
It’s unusual to position a digital bank as credit-led. In terms of lending and loan products, there needs to be a n”anced ”nderstanding of the need for flexibility and precision in response to cons”mer financial behaviorN The ”nderwriting or customer acquisition model needs to be checked and tweaked due to changing customer behavior, and the strategies must be adapted to align with the customer baseN
Addressing credit inclusion is a multifaceted challenge that transcends the banking industry, requiring collective action from a wide range of stakeholders. In regions like the Philippines, among the primary concerns are:
– The need for biometric validation;
– Establishing a comprehensive credit bureau; and
– Overcoming obstacles in income verification through Open Finance initiatives.
Additionally, introducing SIM registration to deter fraud and aligning online loan installment laws with traditional check bounce stat”tes are critical meas”res that need to be implemented to advance credit incl”sion f”rtherN
I am an advocate for collaboration in fostering an inclusive financial landscape. Regulators, financial institutions, and private entities need to collaborate to break down existing barriers, innovate sol”tionsL and c”ltivate an ecosystem where credit becomes accessible in a transparent and eq”itable mannerN Partnerships help broaden the spectr”m of potential c”stomers and enrich the data pool, which helps banks develop more refined and personalized loan prod”ctsN
The vision for which financial services are eq”itable and accessible to all transforms banking from a daunting prospect into a convenient and empowering choice for the underbanked and unbanked. Materializing this vision into a tangible reality means uniting the community, partners and regulatory bodies. Together, we could make credit a catalyst for growth and prosperity, overcoming obstacles to achieve widespread financial inclusion in the region.