Kanags Surendran

What do #Singapore consumers think about their #banking experience? • Our latest survey found security is the number one online banking priority for Singaporeans. • 56% of respondents believe online banking fraud attempts are rising. • Consumers are seeking a balance of convenience and security in their online banking interactions. To learn more on how banks can aide Singaporean consumers click here ➡️ http://spr.ly/6040UkPuo #Finance #Fraud

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Next week, banking professionals from across the region will gather in Jakarta for the Temenos Regional Forum ASEAN, where key trends and opportunities in the market will be uncovered, and discussions will focus on how banks can leverage technological innovations to stay ahead in the rapidly evolving digital landscape. Indonesia, with its rich diversity—home to over 300 ethnic groups spread across 17,000 islands—and its strategic importance as Southeast Asia’s largest economy, is an ideal location for this discussion. As the world’s fourth most populous country and the tenth largest economy by purchasing power parity, Indonesia exemplifies the dynamism of the ASEAN region, where a youthful and increasingly digital-savvy population is driving robust economic growth. The rise of a more affluent, digitally native consumer base in Southeast Asia has sparked a wave of banking innovation, positioning the region at the forefront of customer-centric digital solutions, including mobile apps and QR-code-based payments. Hearing from the visionary banks leading this transformation at the forum will be a highlight. Throughout the event, top banking executives and industry experts will explore global and regional trends shaping the banking landscape. From the challenges posed by geopolitical tensions and global trade fragmentation to the opportunities presented by emerging technologies like AI, quantum computing, and cloud computing, the discussions promise to be both timely and forward-looking. Temenos product experts are set to unveil groundbreaking initiatives that will empower banks to seize new opportunities like never before. The Leap program is a game-changer, accelerating core modernization by harnessing the power of AI to simplify and revolutionize traditionally complex processes such as migration and testing. But that’s just the beginning—Temenos Enterprise Services will be showcased, offering cutting-edge SaaS solutions that allow banks to immediately leverage pre-packaged, pre-configured and end-to-end capabilities. And in a true leap forward, our new Responsible Generative AI solutions will transform productivity by delivering fast, unique insights and tailored products, all generated through simple natural language queries. This is innovation at its finest, and it’s set to redefine the future of banking. We are also pleased to welcome several certified partners, including RedHat, Deloitte, AWS, Bahwan Cybertek, Systems Ltd, Tech Mahindra, Abris, Microsoft, Uniken, and Aspire Systems, who will share their expertise on crucial topics like hybrid cloud and cybersecurity. Our gratitude goes to these partners for their support as sponsors of the event. This promises to be an exciting and insightful event. If registration has not yet been completed, there’s still time—click here to secure a spot. https://lnkd.in/g2ugMj4N

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ARTA TechFin Corporation Limited is revolutionizing the financial landscape by bridging traditional finance with distributed ledger technology (DLT). 𝗛𝗲𝗿𝗲 𝗮𝗿𝗲 𝘁𝗵𝗲 𝗸𝗲𝘆 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲𝗶𝗿 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝘃𝗲 𝗷𝗼𝘂𝗿𝗻𝗲𝘆: 🚀 𝗛𝘆𝗯𝗿𝗶𝗱 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗣𝗹𝗮𝘁𝗳𝗼𝗿𝗺: Arta is a regulated hybrid financial platform integrating traditional finance with DLT. They are developing regulated products in programmable payments and investments, including tokenized investments in global government bonds and fund shares. 💡 𝗔𝘁𝗼𝗺𝗶𝗰 𝗦𝗲𝘁𝘁𝗹𝗲𝗺𝗲𝗻𝘁 𝗣𝗶𝗹𝗼𝘁: Arta is piloting atomic trading and settlement of tokenized investments using central bank digital currency (CBDC) or stablecoin with smart contracts. This innovation aims to enhance efficiency and reduce costs in financial transactions. 🏆 𝗥𝗲𝗰𝗼𝗴𝗻𝗶𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗖𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝗼𝗻: Arta received the Best Technology Award in the CBDC track of the Global Fast-Track Competition by InvestHK and HKMA. They are participating in the HKMA’s e-HKD Pilot Programme, exploring the atomic settlement of fund orders using e-HKD against tokenized funds. 📈 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝘃𝗲 𝗦𝗼𝗹𝘂𝘁𝗶𝗼𝗻𝘀: Arta’s proof-of-concept (PoC) for the e-HKD Pilot Programme demonstrated programmable payment for atomic settlement via smart contracts. This solution offers retail investors higher interest incomes, improved financial inclusion, and reduced operational overhead. 📝 𝗨𝘀𝗲𝗿 𝗙𝗲𝗲𝗱𝗯𝗮𝗰𝗸: User acceptance testing with over 10 global financial institutions and 100+ retail clients showed positive feedback. Financial institutions appreciated the time-efficient, cost-effective process, reduced counterparty risks, and improved operational transparency. Retail users valued access to competitive yields even with small balances and short-term investments. 🔍 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀 𝗮𝗻𝗱 𝗙𝘂𝘁𝘂𝗿𝗲 𝗦𝘁𝗲𝗽𝘀: Arta identified challenges such as transparency, handling stranded balances, and regulatory updates for AML and KYC. They continue to develop DLT payment solutions in collaboration with Chainlink Labs and are researching verifiable credentials for enhanced regulatory compliance. Arta TechFin is at the forefront of integrating blockchain with traditional finance, paving the way for a more efficient and inclusive financial system. Source: https://lnkd.in/diFkC5QP Stay ahead and informed at 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗕𝘆𝘁𝗲𝘀: https://lnkd.in/ev-WMFzG. Make sure you sign up to get your weekly analysis. Your repost is greatly appreciated. Thank you! #Blockchain #DLT #TokenizedInvestments #CBDC #FinancialInnovation #FinTech #ArtaTechFin #HKMA #eHKD #SmartContracts

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Singapore is serving up a taste of what will happen to remittance-focused Fintechs (or even Bitcoin) when governments finally start to focus on simplifying cross-border fund transfers. With 86 per cent of residents sending or receiving money at least once a year, and 70% doing it via remittance apps, Singapore is one of the top countries in the world in terms of usage of remittance products. So no wonder it is now actively expanding its cross-border payment interfaces to facilitate easier and more efficient transactions for both individuals and businesses. The network it is building is impressive, with direct transfers now possible to large money flow partners: India, Indonesia, Malaysia, Thailand and China, with Philippines upcoming. Of these, China and Malaysia alone account for 29% of outward funds flow. How was it able to do this when others can't? 1. It spent years perfecting instant, local fund transfers via FAST, NETS and PayNow which set up the basics, and followed up with a single QR code that works across all consumer facing apps 2. It leveraged its status as a finance, tourism and employment hub by partnering with countries with which it has substantial people-to-people linkages and demand for hassle-free remittances 3. It relies on robust regulation and compliance measures to detect suspicious fund flows 4. It's participating in Project Nexus, an initiative by the Bank of International Settlements that aims to speed up inter-country connects using a hub-and-spoke model vs laborious and slow bilateral negotations Enabling simple, speedy and cheap transfers was so far the remit of Fintechs like Wise, Nium, SingX, Thunes and one of the main arguments in favour of altcoins like Bitcoin and CBDCs. These startups and technologies were ironically enabled and incubated by the same Singapore advantages and global connectivity that might now end up being their downfall. Now, given the UAE's outbound remittances are 4x that of Singapore, will the Middle East also look at replicating Singapore's model? And if it does what will it take to achieve this? And when the core premise of fintechs become a basic public good, what will become of these fintechs? Nium SingX Wise Revolut #paynow NETS Joseph Cleetus

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The most important picture of Singapore FinTech Festival for those working in financial services. Don't miss the 4 trends coming from Singapore. Ravi Menon, the chair of GFTN and former MD of Monetary Authority of Singapore (MAS) highlighted the 4 areas of focus they are focusing on: - The new architecture of finance through tokenisation of financial assets. That includes digital money - wholesale CBDCs are starting with the testnet of the SGD. Digital bonds, tokenised funds, or FX with Project Guardian. This was presented very clearly as part of the Layer One discussions. - Artificial Intelligence and Generative AI. This includes frameworks and initiatives such as Mindforge or the AI Verify Foundation to implement AI in a structured and responsible way. - Quantum computing. Post quantum cryptography is now moving from a tech topic to an industry / strategy topic. - Climate tech. Singapore is keen to attract more investments in the space, and sustainability has become essential skills with the Job Transformation Maps for sustainable finance was released this year. This is very advanced compared to the global industry today, but it's the natural evolution of years of experimentation and industry collaboration (i.e. the FEAT framework for AI was developed in 2018, and Project Ubin for the exploration of DLT for financial assets was started in 2016). This is the future of finance being transformed in front of our eyes, very exciting! Tram Anh Nguyen CFTE - Centre for Finance, Technology and Entrepreneurship Sopnendu Mohanty Alan Lim Shameek Kundu David R. Hardoon Anna Irrera Kenneth Gay Claire Calmejane

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Open Finance in South-East Asia. The Asian financial services landscape is diverse and constantly evolving, but also ripe with opportunities. #asean #southeastasia #singapore #thailand #finance #openfinance #openbanking

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𝗗𝗕𝗦 𝗕𝗮𝗻𝗸 𝗣𝗶𝗼𝗻𝗲𝗲𝗿𝘀 𝗕𝗹𝗼𝗰𝗸𝗰𝗵𝗮𝗶𝗻-𝗕𝗮𝘀𝗲𝗱 𝗕𝗮𝗻𝗸𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 '𝗗𝗕𝗦 𝗧𝗼𝗸𝗲𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀' 🚀💰 Singapore's largest bank, DBS Bank, is advancing the future of banking by launching DBS Token Services, a blockchain-based suite of services for institutional clients. This move integrates tokenization and smart contract capabilities with DBS’s existing banking infrastructure, signaling a major step forward in blockchain-enabled banking. 🔑 𝗞𝗲𝘆 𝗵𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀 𝗼𝗳 𝗗𝗕𝗦 𝗧𝗼𝗸𝗲𝗻 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀: • 𝗘𝘁𝗵𝗲𝗿𝗲𝘂𝗺 𝗩𝗶𝗿𝘁𝘂𝗮𝗹 𝗠𝗮𝗰𝗵𝗶𝗻𝗲-𝗰𝗼𝗺𝗽𝗮𝘁𝗶𝗯𝗹𝗲 𝗽𝗲𝗿𝗺𝗶𝘀𝘀𝗶𝗼𝗻𝗲𝗱 𝗯𝗹𝗼𝗰𝗸𝗰𝗵𝗮𝗶𝗻: DBS’s in-house blockchain ensures secure and compliant tokenized transactions. • 𝗧𝗿𝗲𝗮𝘀𝘂𝗿𝘆 𝗧𝗼𝗸𝗲𝗻𝘀: In partnership with Ant International, these tokens facilitate 24/7 multi-currency settlements for multinational corporations. • 𝗖𝗼𝗻𝗱𝗶𝘁𝗶𝗼𝗻𝗮𝗹 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀: Aims to streamline payment workflows by leveraging programmable smart contracts. • 𝗣𝗿𝗼𝗴𝗿𝗮𝗺𝗺𝗮𝗯𝗹𝗲 𝗥𝗲𝘄𝗮𝗿𝗱𝘀: Enables institutions to curate and manage digital voucher programs, opening new avenues for customer engagement. Lim Soon Chong, head of global transaction services at DBS, highlighted that this platform allows businesses and public sector entities to optimize liquidity, streamline operations, and unlock new growth opportunities. 𝗕𝘂𝘁 𝘄𝗵𝘆 𝘀𝘁𝗼𝗽 𝗵𝗲𝗿𝗲❓ Why not go one step further and offer a “Digital Bank Account” that removes the confusion surrounding stablecoins (many of which are far from stable), tokenized deposits, and digital wallets that rely on complex passwords and long, memorable strings of words? The future of banking should make the user experience simple: a bank account where users can easily accept both e-money and D-money—all in one place, without the hassle. Source: https://lnkd.in/eW3HAW_Q For more weekly insight and thought-provoking analysis, ensure you get your copy at 𝗗𝗶𝗴𝗶𝘁𝗮𝗹 𝗕𝘆𝘁𝗲𝘀: https://lnkd.in/ev-WMFzG. Make sure you sign up to get your weekly analysis. #Blockchain #DigitalBanking #Tokenization 

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🔥 MUST READ🔥 Instant Cross-Border Mobile Payments are Becoming a Reality in SE Asia Simple is always best, and one way to get immediate cross-border payments is to connect Asia’s wildly successful QR-based instant payment systems (IPS). The problem is that connecting IPSs is anything but simple, and that’s where the BIS’s Project Nexus and its standardized approach is making a breakthrough. Southeast Asia is a hotspot for these bilateral linkages, with 13 person-to-merchant (P2M) QR payment linkages and four person-to-person (P2P) payment linkages as of May 2024. The rationale for why this is happening in SE Asia is clear. The entire region has its sites set on growth, and with SMEs as a dominant force in their economies, mobile payments are simply practical. And the next step is mind-blowingly large: connecting them all to India’s UPI! 👉TAKEAWAYS (FULL PDF ON LINK BELOW) 🔹 Improving cross-border payments: Nexus aims to improve the speed, cost, transparency, and access to cross-border payments with payments that reach their destination in 60 seconds or less. 🔹 Linking IPS multilateral: Some countries already link their IPS, but single bilateral links' slow and complex building makes scaling challenging. 🔹 Standardizing the scheme: Nexus eases IPS interlinking by standardizing the way that IPS connect to each other. 🔹 Speed: Nexus will enable cross-border payments in seconds, 24/7/365, as most IPS process domestic payments within 30 seconds. 🔹 Cost: Nexus payments should fall within the G20 and UN SDG target of costing the Sender less than 3% of the value of the payment. 🔹 Access: Nexus provides access to cross-border payments to any bank or non-bank PSPs that are eligible to join their domestic IPS. 🔹 Transparency: Nexus gives the Sender transparency about how much it will cost them to pay a specific amount to the Recipient 👊STRAIGHT TALK👊 Nexus isn’t just for SE Asia, with some 70 nations using IPSs there is a lot of room for growth in cross-border mobile payments. The next step for Project Nexus is truly remarkable and I’ll reproduce it in full: ”Phase four will see Bank Negara Malaysia, Bangko Sentral ng Pilipinas, the Monetary Authority of Singapore, the Bank of Thailand and domestic IPS operators joined by the Reserve Bank of India, expanding the potential user base to India's Unified Payments Interface (UPI), the world's largest IPS.” So India’s UPI the world's largest IPS will be connected with most of SE Asia which means that roughly 25% of the world’s population will have cross-border instant payments! Mind-blown yet? This fintech revolution is brought to you by Asia! What do you think? ✍️Friends, don't let friends go without comments! ♻️Reposters you are the best! Thanks so much for sharing! ---------------------- 💥 My name is Rich, I’m not an AI! 🔺 hashtag #Fintech, hashtag #AI and hashtag #Tech at the speed of hashtag #Asia and hashtag #China.

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Ever since macroeconomic conditions turned unfavorable several years ago, super apps have been scrambling to prove that their business models are viable as investors lose patience with growth at all costs. However, the transition has not been easy. In GoTo’s case, the company lost US$6.3 million in the first quarter of 2024, which it blamed on seasonal slowness and “planned investment," though the company claims that it is on track for EBITDA profitability this year. GoTo seems to be betting big on the integration of TikTok and Tokopedia, which it believes will lead to significant e-commerce synergies. There is a fintech angle as well: GoTo plans to launch a buy now, pay later product for TikTok and will likely aim to increasingly integrate its e-commerce and fintech businesses in the future. The BNPL offering can attract younger, tech-savvy consumers who are more open to alternative financing options. If executed well, these initiatives could help GoTo expand its user base, increase transactions, and generate additional revenue streams. However, it will be important for GoTo to manage the credit risk associated with BNPL. What is more intriguing is GoTo’s nascent embedded finance project – which in this case looks a bit like a rebranding of the super app concept. On GoTo’s Q1 earnings call, the company’s management said that it is developing a vehicle financing program for drivers “that at some point will move out to consumers as well,” adding that it is fortunate to have “a bunch of embedded markets” for its fintech business. Overall, the fintech business does seem to be doing well. GoTo’s loan book expanded by 43% year-on-year in the first quarter without any corresponding uptick in non-performing loans. The overall loan balance also grew to US$166 million, a threefold annual increase. Bank Jago (in which Gojek took a 22% stake in Dec. 2020) accounted for about 75% of GoTo’s loan book in the first quarter, up from 70% in the fourth quarter of 2023. “The companies will continue to collaborate to scale GoTo’s loan origination throughout 2024,” GoTo said in a press release. For their part, investors thus far have reacted with moderate enthusiasm to GoTo’s first quarter earnings, which were reported on April 30. The company’s share price had risen more than 8% to 66 rupiah in the five days of trading through May 3. However, it has still fallen 27% over the last three months and about 38% over the last year. Whether GoTo wants to call its core value proposition a super app or embedded finance, it still has to prove to investors that the bundling of disparate digital services can be profitable. The jury may be out on that for a while yet. #goto #superapp #embeddedfinance #fintech #payments #digitalbanking #indonesia #tiktok https://hubs.li/Q02w6qq40

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💡The Singapore FinTech Festival 2024 is baaaaack! 🔦 Spotlight will be on Artificial Intelligence and Quantum Technology. Sopnendu Mohanty / 漠汉帝 / 模範帝 / सोपनेंदु / ସୋପ୍ନେନ୍ଦୁ , Chief FinTech Officer of the Monetary Authority of Singapore (MAS) and Chairman of Elevandi Board said, “The financial services sector is at a critical inflection point, with AI and Quantum Computing poised to revolutionise the global financial ecosystem. SFF 2024 will seek to align technology, innovation, and regulation so that these transformative technologies are deployed with strategic foresight, collaboration, and adaptability to unlock new opportunities for economic and industry growth and resilience. Harmonising global FinTech regulations that support innovation, fostering cross-border collaboration on payments and credit, and ensuring a secure, inclusive, and sustainable financial ecosystem powered by responsible adoption of AI and Quantum Technologies will be the primary focus of SFF 2024.” “SFF will also feature the following highlights: ➡️ Invitation-only Dialogues and Signature Side Events such as the Insights Forum™ will convene 1,500 senior policymakers, top industry executives, and investors for leadership dialogues and collaboration discussions. ➡️ This year, the Global FinTech Hackcelerator, organised by MAS and in partnership with Elevandi is looking for innovative solutions to address problem statements centred on Improving Financial Health. ➡️ Blockchain Guardians Programme : a new skills-based learning initiative will commence on 2 September 2024. ➡️ Five Thematic Zones – Technology Zone, 🍀 ESG Zone, Regulation Zone, Founders & Investors Zone, and Talent Zone – where attendees can participate in dialogues, workshops, and explore an international showcase of the latest FinTech solutions. ❤️ MAS will also be introducing founder- and investor-focused mentorship sessions, masterclasses such as The Art of Storytelling, a spotlight on 🙋‍♀️women entrepreneurs, mental health and wellness workshops, and an alumni meet-up for past participants. ➡️SFF MeetUp , a new networking initiative, is expected to facilitate 20,000 meetings at the Festival.” 📒Registrations are open at https://lnkd.in/gtKbFp3E Read the full release on https://lnkd.in/gAk8GrsR #Fintech #AI #quantum #Talent #ESG

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Singapore is inviting more technological innovation by partnering with OpenAI.  OpenAI is setting up its 4th international office in Singapore. While it’s exciting to see innovation entering our city-state, the potential of AI to drive economic growth is still uncertain. The current focus globally is AI’s ability to refine and speed up complex business processes. From smarter risk assessments to personalised financial strategies, these advancements could help us guide clients through complex financial decisions with greater precision and insight. Beyond economic benefits, OpenAI’s focus on developing culturally sensitive models for Southeast Asia, including Singapore, could make a difference in client interactions. In a nation known for its diversity, having AI that understands and respects our client's unique cultural contexts is praised for allowing people to offer more personalised, meaningful services. While I understand why using AI in more business practices is exciting, the human element will always be more impactful. Empathy and understanding a client’s unique needs will always be top priorities when interacting with clients and managing their wealth. I’m always more willing to put in the extra effort to provide my clients with a more specialised and insightful wealth management service that suit their needs.  Does the OpenAI partnership with Singapore excite you?

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Asia United Bank (AUB): Growing Smart in Philippine Banking Asia United Bank (AUB) is charting a course in Philippine banking, balancing traditional services with digital innovation. AUB’s approach to lending, expansion, and risk is well-crafted, growing not just fast but smart. Here’s how AUB is building success, one careful choice at a time. Lending for All Types of Borrowers AUB divides lending into two main areas, each tailored to different needs, like a well-diversified portfolio. - Commercial Lending: AUB serves businesses from large corporations to SMEs, offering loans and cash management. Despite rising rates, AUB’s commercial lending grew by 8% in 2023, stabilizing income by lending to diverse clients. - Consumer Lending: AUB offers loans like mortgages and credit cards, creating steady monthly payments. In 2023, it expanded with virtual credit cards, reaching over 50,000 cardholders and aiming for 80,000 by 2025, diversifying its base and building resilience. Deepening Customer Relationships Good banking isn’t just about new customers—it’s about strengthening ties with current ones. For example, companies with AUB payroll accounts may offer employees salary loans or credit cards. This “cross-selling” boosts revenue without high acquisition costs, making customer relationships more valuable. Expanding Reach Digitally Instead of building branches, AUB reaches more customers with digital tools like HelloMoney and AUB PayMate. - HelloMoney App: Bringing banking into every pocket, HelloMoney allows payments, transfers, and even cashless transactions abroad. Going digital lets AUB reach more customers, even in remote areas. - AUB PayMate: AUB PayMate lets merchants accept cashless payments, including QR codes. In partnership with Alipay+, PayMate supports payments abroad, tapping into the future of cashless transactions. Growing Smart, Keeping Risk Low Growth matters, but AUB prioritizes stability. Its low non-performing loan (NPL) ratio of 0.53% and a Capital Adequacy Ratio (CAR) of 20.4% show disciplined credit management and financial strength. These measures assure absolute return investors and regulators that AUB can handle ups and downs. Balancing Digital and Physical Banking With 224 branches and over 200 ATMs, AUB offers both in-person and digital services. This hybrid model appeals to clients who value both in-branch service and digital convenience. It’s a smart move in a diverse market. Targeting High-Growth Sectors AUB is also targeting high-potential areas like SMEs and underserved communities. These segments are essential to the Philippine economy but often lack access to funds. By supporting SMEs and using digital tools to reach rural areas, AUB builds long-term customer loyalty and strengthens its market position. In short, AUB’s approach blends prudent lending, digital expansion, and a customer-centered strategy, setting it on a path for sustainable growth. #absolutereturninvesting

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Contrary to popular belief that digital banks should be more efficient, our analysis reveals the opposite. Many digital banks have Beban Operasional Pendapatan Operasional (BOPO) Ratios above the industry average, leading to razor-thin profit margins due to inefficiencies. Learn more about this and other key insights into digital banking in Indonesia in our comprehensive analysis: https://lnkd.in/g8WHhJ5i #DigitalBanking #Indonesia #FinancialSector #BankingInnovation #Fintech

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🇮🇩 Indonesia, the largest economy in ASEAN, has payments on an accelerated growth path ! 🌿 Indonesia is a leader in digital payments, with $1.47 Trillion in nominal GDP, about 300 million citizens and an aggressive regulatory environments pushing not just Indonesia but a wider ASEAN. 🚀 Things have really changed over the last decade though, for its digital economy. From processing 200 million digital payments in 2014 to about 7 billion in 2023, Indonesia has been building a strong payments infrastructure. Central bank (Bank Indonesia), commercial banks, a growing fintech ecosystem, and regional politics is driving this growth. BI-Fast, the instant payments has had some hiccups, but nothing that the country can not fix. An interconnected ASEAN payments network is also something that Indonesia is contributing to and driving and digital currency, CBDC, also seems to be high on priority list. 📈 🎊 With all this growth over the last decade, an intriguing questions is, what would the digital economy look like in the next 5 to 10 years and what would that mean for payments and larger banking landscape ? ❓ Difficult to answer, but what is clear is that commercial banks have to prepare for unprecedented growth from domestic, regional and international markets in their payments business. It is now becoming clear where the majority of this growth might come from - 1️⃣ 🌏 Cross Border payments volumes As ASEAN economies open up, such as Vietnam, businesses and individuals in Indonesia will have access to these markets through an interconnected network of instant payments clearing schemes. Commercials banks will have to cater to this need, either alone or with the wider fintech ecosystem to distribute services and acquire transaction volume. Payments beyond ASEAN, remittance, is more critical than ever, and as the domestic banks expand into new markets, even small foreign operations will add to the complexity in technology stack and overall efficiency of operations, which eventually impacts transaction margins. 2️⃣ 💸 Fintechs as a channel to acquire transaction volume Fintechs in Indonesia and wider ASEAN are playing an important role in acquiring transactions of various sort and distributing banking services. Banks with business models, supported by technology stack and operations to manage this will have an edge. This is the great equalizer for small and mid size banks, and a way to retain customer base for large banks. 3️⃣ 🏦 Overall economic growth As rest of the population in Indonesia and ASEAN is included in the digital economy, the transaction volumes will increase, the question though is to what levels. Banks and fintech's that can prepare for this, will have an advantage. 🤝 If you are a bank or a payments fintech in Indonesia or ASEAN with unfathomable ambitions in transaction banking, Temenos can help, do reach out for a conversation. #payments #strategy #fintech #Indonesia Ravindra Pathare Daniel Lee Rishi Sarin Sharon Ang

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