FEBRUARY 2019CIOAPPLICATIONSEUROPE.COM8ith continued growth in the number of global customers in banking, insurance, wealth management and fintech, the landscape of the financial services sector continues to evolve due to the progression of technology and customer expectations. There are several technology trends that are surfacing within the sector and it is important for financial institutions to remain relevant to ensure their success. As we start a new calendar year, let's delve into some of the trends to look out for in Asia Pacific in 2019. Focus on investing for productivity resulting from global instabilityFinancial institutions will be focused on reducing their exposure to the significant macro-risks impacting the global economy. In its October 2018 World Economic Outlook, the IMF revised global growth estimate down, stating that "downside risks to global growth have risen in the past six months and the potential for upside surprises has receded." Developed economies in Asia face a risk of political instability from disputes regarding the South China Sea, the ongoing maritime tension between Singapore and Malaysia, or even the deteriorating US-China relations that would affect countries globally, including Singapore. Against this backdrop, 2019 will be the year that financial service firms focus technology investment on material cost-savings and productivity gains through the use of AI and automation for key parts of operations.For example, we have seen a growing interest in AI-Augmented capture in the financial services sector. Combining digital capture tools with AI can limit the administrative burden of document collection and categorization, while extending the productivity gains of digitization deeper into the business. Automatically assigning meta-data, routing routine workflows, or error detection are simple functions added greater levels of compliance by identifying sensitive information enabling the system to apply the appropriate controls that can bring significant value. AI-augmented Capture transforms traditional capture and delivers utmost operational efficiencyRise of new digital competitors Traditional financial services companies face competition from an expanded set of competitors. Digital players are starting to capture market share in payments (see Kakao in South Korea) or wealth management while digital-only banks (such as WeBankin Chinaand, Jibun Bank in Japan) are staring to capture more attention.DBS, Singapore's largest bank, cites efforts to help customers transition to digital services as a key profit driver. The bank earns more than twice as much revenue from each digital customer compared to a traditional customer. The Future is Closer Than You Think: Technology Trends That Will Impact the Financial Services Sector In 2019 ALBERT TAY, DIRECTOR, FINANCIAL SERVICES INDUSTRY, ASIA PACIFIC AND ADVANCING MARKET AT OPENTEXTWIN MYOPINION
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