Some 58 percent of global respondents predict that they will completely cease to exist in the next five to ten years unless they change their business models.(Photo: VNA)Hanoi (VNS/VNA) - About 67 percent of surveyed banks believe theywill lose market share within two years if they fail to digitally transform,according to a new report from cloud banking platform Mambu and The FinancialTimes Focus (FT Focus).
The ‘Evolve or be extinct’ report was conducted by FT Focus and surveyed over500 senior banking executives globally to gain insights into their perceptionof the banking industry, now and in the future.
The results illustrate the urgent need for banks to modernise their offerings,with 58 percent of global respondents predicting they will completely cease toexist in the next five to ten years unless they change their business models.
Pham Quang Minh, General Manager Vietnam at Mambu, said: “What we are seeing inVietnam in particular is increasing demand for online and mobile bankingservices from consumers that is driving digital transformation of banks. Onlinetransactions in Vietnam for the first four months of this year jumped 66 percentcompared with the same period last year, which has been accelerated enormouslyby the pandemic.”
“There’s also been a huge increase in the use of e-wallets, payments viasmartphones and QR codes, and high demand for ‘instant credit’ solutions suchas Buy-Now-Pay-Later, particularly among those segments of the population thatremain unbanked or underbanked. Vietnam’s consumers are demanding digitalfinancial solutions, and our industry is rising to the challenge, with bankslike Timo, TNEX and Cake at the cutting-edge of digital banking gainingattention around the world. This is an exciting time for Vietnam, but as thisresearch report shows, those banks that are reluctant to take a digital leaprisk becoming extinct.”
Looking more closely at Asia Pacific, the FT Focus report indicates that theregion is lagging behind other regions on transformation, however, APAC banksare taking steps to ‘catch up’ to the rest of the world, with plans to increaseinvestment in big data, machine learning and blockchain at significantly higherrates than other regions.
Myles Bertrand, Mambu’s Managing Director APAC, said: “The research illustrateshow the banking industry is diverging on its approach to digitaltransformation. While less than one third of APAC banks describe their digitaltransformation strategy as mature or advanced, there’s an emerging cohort ofdigital ‘evolvers’ that is bucking this trend and really leading the way. Theseforward-thinking players are setting a blueprint for the rest of the industryto follow while demonstrating the business case for a customer-centricapproach.
“And while the strong commitment from APAC banks to increase their investmentin new technologies is very positive, banks in the region also need to changethe way they approach innovation, and start proactively embracing newpartnerships and collaborations. The ‘ecosystem’ approach has been incrediblysuccessful in other regions, and with half of APAC banks concerned that theylack key internal workforce skills necessary to transform, it will prove veryeffective here too.”
Elliott Limb, Chief Customer Officer at Mambu, said: “The last 18 months haveshown banks just how important it is for them to have a robust and agiledigital banking offering. And with 53 percent of those surveyed admittingthey’re at risk of missing digital transformation targets, it's time theindustry took note of the financial ‘evolvers’ that are leading the charge inthis space. These are fintechs, challenger banks, and forward-thinkingtraditional players that are prioritising purpose-driven services and greatcustomer experience.”/.
The ‘Evolve or be extinct’ report was conducted by FT Focus and surveyed over500 senior banking executives globally to gain insights into their perceptionof the banking industry, now and in the future.
The results illustrate the urgent need for banks to modernise their offerings,with 58 percent of global respondents predicting they will completely cease toexist in the next five to ten years unless they change their business models.
Pham Quang Minh, General Manager Vietnam at Mambu, said: “What we are seeing inVietnam in particular is increasing demand for online and mobile bankingservices from consumers that is driving digital transformation of banks. Onlinetransactions in Vietnam for the first four months of this year jumped 66 percentcompared with the same period last year, which has been accelerated enormouslyby the pandemic.”
“There’s also been a huge increase in the use of e-wallets, payments viasmartphones and QR codes, and high demand for ‘instant credit’ solutions suchas Buy-Now-Pay-Later, particularly among those segments of the population thatremain unbanked or underbanked. Vietnam’s consumers are demanding digitalfinancial solutions, and our industry is rising to the challenge, with bankslike Timo, TNEX and Cake at the cutting-edge of digital banking gainingattention around the world. This is an exciting time for Vietnam, but as thisresearch report shows, those banks that are reluctant to take a digital leaprisk becoming extinct.”
Looking more closely at Asia Pacific, the FT Focus report indicates that theregion is lagging behind other regions on transformation, however, APAC banksare taking steps to ‘catch up’ to the rest of the world, with plans to increaseinvestment in big data, machine learning and blockchain at significantly higherrates than other regions.
Myles Bertrand, Mambu’s Managing Director APAC, said: “The research illustrateshow the banking industry is diverging on its approach to digitaltransformation. While less than one third of APAC banks describe their digitaltransformation strategy as mature or advanced, there’s an emerging cohort ofdigital ‘evolvers’ that is bucking this trend and really leading the way. Theseforward-thinking players are setting a blueprint for the rest of the industryto follow while demonstrating the business case for a customer-centricapproach.
“And while the strong commitment from APAC banks to increase their investmentin new technologies is very positive, banks in the region also need to changethe way they approach innovation, and start proactively embracing newpartnerships and collaborations. The ‘ecosystem’ approach has been incrediblysuccessful in other regions, and with half of APAC banks concerned that theylack key internal workforce skills necessary to transform, it will prove veryeffective here too.”
Elliott Limb, Chief Customer Officer at Mambu, said: “The last 18 months haveshown banks just how important it is for them to have a robust and agiledigital banking offering. And with 53 percent of those surveyed admittingthey’re at risk of missing digital transformation targets, it's time theindustry took note of the financial ‘evolvers’ that are leading the charge inthis space. These are fintechs, challenger banks, and forward-thinkingtraditional players that are prioritising purpose-driven services and greatcustomer experience.”/.
VNA
