HOW often do you exchange cash for products and services, today? In many ways, Covid-19 has spurred new, digital ways to bank but it’s consumer behaviour that’s driving the market’s most innovative banking solutions.

       Consumers expect to have control over personal data and their growing thirst for convenience is shaping how financial institutions innovate and transform.

       A recent industry panel, focused on digital finance, featured insights from Bain and Company, Maybank, Pertama Digital, the Philippines’ GOtyme Digital Bank and ServiceNow.

       Looking at new ways to deliver digital services, Kiwibank, which has the most physical branches in New Zealand, engaged ServiceNow to create a customer care online interaction channel within four days, to funnel all the customers to the bank’s backend staff.

       This is a testament that accelerated digital adoption is life changing for all parties, said ServiceNow solutions consulting senior manager Liew Kok Mun.

       Liew shared that the team could handle about 5,000 requests in the first few days when Kiwibank’s portal was launched.

       Digital Finance Industry Calibration for the ‘Never Normal’ PowerPanel: (From left) Baijal who was moderator, with Malolos, Mohd Suhail, Akhtar and Liew.

       “Positive customer perception is a strong source of sustainable competitive advantage for a financial institution and service provider’s profitability and market share during a time of crisis.”

       Noting that accelerated digital adoption would result in future consolidation of the multiple e-wallets currently available, Liew pointed out it has also provided job opportunities to workers in the gig economy, giving service providers the ability to compete as well as expand the landscape to hire talent.

       “One of our clients (an international bank that operates majority in Singapore and Malaysia with about 90,000 employees globally) used this flexibility and marketed it as a differentiation for itself to attract talent from varied locations,” said Liew who has spent the past 14 years helping enterprises elevate digital experiences in various domains including service management and security operations.

       Noting that the pandemic has helped accelerate digital banking by five to 10 years, Maybank group chief technology officer Mohd Suhail predicts that there will come a point in time where Malaysians can move around with only their mobile gadgets.

       He said even people who have been extremely resistant to adopting digital have been converted.

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       “Maybank’s statistics show that digital adoption is at an all-time high. As at May 2021, online retail transactions on our digital platform grew by 51% year-on-year.

       “Customers’ preference towards being served online is growing on a day-to-day basis. Transactions like QR pay via mobile grew by 200%, while businesses and SMEs are embracing digital means, with 100,000 new accounts online opened in Maybank from February this year.”

       With this surge in adoption, Mohd Suhail said demand for digital and Internet services will continuously increase among consumers and businesses who demand speed, convenience and a secure environment.

       “Maybank ultimately wants to ensure credential inclusion by reaching out to the underserved and unserved segments of society to provide them with quality access to financial solutions, in line with our vision of humanising financial services,” he said.

       Pointing out that digital banking remains an alternative and not the default choice among consumers, Pertama Digital director of strategy Saify Akhtar said it is crucial to develop people-centric digital products to avoid missing great opportunities that lie ahead.

       “Public confidence in the digital way of life has to be maintained and enhanced. We must make sure the value proposition for all stakeholders is strong, can solve problems, and meet the needs as well as heightened expectations.”

       Noting that digital financial services tend to favour consumers instead of merchants, Saify said entrepreneurs should be left to focus on making an income, rather than be overcome with administrative responsibilities of operating a business.

       He believes that the near future will have a more transparent and equitable financial sector that is spurred by decentralised finance but still offers protection of a regulated environment.

       Meanwhile, GOtyme Digital Bank president and chief executive officer Jojo Malolos recommended using hybrid or omnichannel ways to approach digital adoption opportunities brought about by Covid-19, after noting that volatility, uncertainty, complexity, and ambiguity (VUCA) will make it challenging for operators to remain firm with business models to survive digital adoption and the onslaught of technology.

       “Consolidate the new types of services and solutions, combine objectives and manage data in a way that can benefit everyone,” he said.

       He predicted that the most successful banks or financial institutions in the future will be technology companies which can conduct open finance, get all services where data is shared across to all bank account holders, and highly personalised for individuals.

       Let’s workflow it with ServiceNow today! Contact us at Info-asia@servicenow.com to find out more, or visit www.Servicenow.com.

       ServiceNow was a Silver Sponsor of Star Media Group’s StarBiz Summit 2021, held in conjunction with the group’s 50th anniversary. To rewatch the industry power panel session, visit bit.ly/starbiz-servicenow.