In this article published by The Business Times in Singapore, David Becker, head of Asia Pacific at Broadridge, argues that now is the time for banks across Asia Pacific to adopt fintech solutions.
The financial industry has experienced a decade of change since the global financial crisis upended traditional business models and cut profit margins to the bone. Many banks have slimmed operations and aggressively cut costs.
However, many banks continue to struggle with low profitability amid fierce competition and ever-stricter regulatory requirements. At the same time the industry is facing regulatory shakeups, such as MiFID II that will almost certainly mean higher regulatory compliance costs and a need to upgrade information technology across many financial market segments.
With most banks having already achieved all the cost cutting that they can within their own four walls, the time is ripe for banks across Asia Pacific to adopt next generation technologies, such as blockchain, artificial intelligence and cloud services to help improve efficiency, increase revenues and capture savings.