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FICO Survey: 3 in 5 APAC Banks Do Not Have Full Digital Account Opening For New Customers

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  • 60 percent of Asia Pacific (APAC) banks surveyed either have no digital onboarding process for new customers, or only part of it has gone online
  • However, 79 percent of banks have launched or are currently considering a separate digital banking offering to leapfrog challenges in acquiring new customers
  • APAC banks see payments (32%) and personal loans (24%) as areas that present the greatest opportunities for the future of digital banking

For more information: https://www.fico.com/en/products/fico-decision-management-suite

A recent survey by analytics software firm FICO has revealed that three in five (60%) banks in Asia Pacific have yet to offer a full digital account opening process for new customers, despite recent reports that nearly 9 in 10 financial institutions in the region embarked on digital transformation.

The region’s changing regulations (28%) and the need to create digital know-your-customer (KYC) and anti-money laundering (AML) (21%) solutions were cited as the two key challenges for APAC banks looking to acquire new customers online.

“In Asia, the identification processes used for services such as e-government, banking or telecommunications evolved independently of each other, leading to a fragmented approach with inconsistent levels of security,” said Dan McConaghy, president of FICO in Asia Pacific. “Open banking and regulations like Europe’s PSD2 are now bringing regulatory rigor to bear on the issue and forcing banks to comply to certain standards and embrace technologies that will better enable digital onboarding.”

For some established banks, one short-cut to their own existing challenges, incumbent technologies and inefficient silos is to start again. FICO’s survey revealed that 79 percent of the banks have launched or are currently considering a separate digital banking offering to leapfrog challenges in acquiring and retaining new customers.

“Fintechs and challenger banks have disrupted the status quo in the financial services universe,” said McConaghy. “By developing compelling new products, services and experiences, these companies have set a new standard and raised customer expectations. Traditional banks now find themselves needing to rethink and redesign their services, to transform themselves digitally, and meet the market.”

FICO’s survey found that 40 percent of respondents said digital-only banks and fintechs were the greatest competition to their business, with APAC Internet players (20%) and telcos diversifying into lending (20%) coming in equal second place. Conversely, the greatest opportunities for digital banking for the respondents were nominated as digital payments (32%) and personal loans (24%).

APAC banks said they are planning to focus on investing in data science (19%) and improving their customer segmentation for products and services (19%) as their top priorities for their bank transformation.

When asked about the future size of their bank in the year 2030, some 28 percent of the survey respondents predicted that their organisations would need fewer employees (between 5 to 50% decrease). A further 28 percent said they think they will need significantly less staff (a 50% or more decrease) in 2030.

“There is some recognition in the market that the right size for many banks in the near future will be smaller,” said McConaghy. “New technologies, increasing competition and different business models will change the way financial services looks in ten years’ time.”

FICO surveyed 20 chief risk officers from across Asia Pacific in April 2019 at its CRO Forum 2019 event in Bangkok, Thailand.

 

SOURCE FICO

Fintech

Accura Scan, The Only Certified Biometric Solution Provider in Middle East & Africa for Banks and Telcos

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Global Identity Verification and Digital KYC solutions provider, Accura Scan is pleased to announce being awarded ISO/IEC 30107-03 compliance after passing a presentation attack detection (PAD) iBeta Level 2 audit with 0% FAR, making it one of the few companies worldwide and the only in IndiaSingapore, APAC & Middle East to have such a recognition.

As part of the testing procedure to assess the performance of Accura Scan face biometric liveness system, which is already being used by clients globally, it was successfully tested with millions of data points in alpha & beta testing modes. Its algorithms were pitted against various forms of spoofing attempts, including but not limited to 3D-printed and curved masks, silicone and paper masks, and videos of real subjects.

Yasin Patel (YP), Accura Scan’s CEO & Founder, expressed great pride in the achievement, adding, “Obtaining the ISO 30107-03 standard after passing the rigorous iBeta level 2 test demonstrates the effectiveness of our solutions against spoofing attacks.” He further announced that in keeping with their motto of ‘Biometrics for All’, Accura Scan would be offering its trusted Identity Verification Suite for free to all start-ups, while established entities would be offered various modules for as little as USD 5,000 a year onwards.

Commenting on this feat, Director – International Sales, Reza Writer, added, “Ambition greater than resources is in the DNA of Accura Scan. We have achieved this feat with a very small but highly skilled & dedicated team that has executed the organizational goal beautifully.”

The ISO 30107-3 framework measures a biometric system’s false acceptance rate (FAR) and false rejection rate (FRR) at the point of presentation. Passing the evaluation with an FAR of 0%, means that the company’s biometric algorithms offer a high level of spoof resistance in all environments.

Headquartered in India, Accura Scan has been completely bootstrapped & profitable since its incorporation. It has firmly established itself in the MENA region over the last 4 years, working with some of the most esteemed Banks, Telecoms & Fintechs globally. As a part of its global strategy, it has now registered itself in Singapore, the EU, the UK, & the US. With top-notch Identity Verification & Digital KYC products, it is confident of making a mark in these markets.

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BIM Exchange integrates traditional currency option for buying and selling cryptocurrencies

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BIM Exchange revolutionizes the purchase of crypto-currencies: implicity and security guaranteed

BIM Exchange, the French pioneer of crypto-currency exchange platforms, today announces a major breakthrough in the ease of access and security of crypto transactions. With its new feature, it has never been easier to buy and trade crypto-currencies, bridging the gap between the traditional Web and Web 3.0.

Integration of payments in tradtional currencies: Euro, Dollar, Pound Sterling and Swiss Franc

BIM Exchange now enables its users to buy crypto-currencies directly by bank transfer in less than 24 hours, regardless of their currency. The funds are then securely transferred to the user’s decentralized wallet, such as Ledger, TrustWallet, MetaMask or other.

This method considerably simplifies access to digital currencies, while guaranteeing maximum security.

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Fintech

Monzo founder talks Prosper. Company sees incredible demand for its Crowdfund, smashing 130% of its target, raising over £785,000.

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Having recently announced its crowdfund was open to the public and with a little more than a week to go, Prosper today confirmed it has hit 130% of its funding target, raising over £785,000.

The company is backed by some of the biggest names in fintech. One of those, Tom Blomfield, the founder and former CEO of digital bank Monzo, said:

“The crowdfunding community was vital to Monzo’s growth and helped us engage with our early users. Like Monzo, Prosper is a customer champion brand shaking up the wealth industry. As I invested in Prosper, it became clear that speaking to the community would also play a part in their journey. It’s only the beginning, but I’m excited to help more people prosper!”

Monzo’s first crowdfunding campaign raised just under £1m at a £30m valuation. Today, that valuation stands at “around £4 billion”, according to Sky News. With a week of its own crowdfund still to go, Prosper hopes to build on that success, already closing in on Monzo’s original raise achievement.

“We’ve been blown away by the demand we’ve seen from our community. It’s a testament to the value we can create building a customer-championing business in the world of saving and investing,” said founder and CEO Nick Perrett.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more.

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