Delivered at the Singapore FinTech Festival, panellists explored key themes shaping financial services as we enter 2025, including managing risk, embracing innovation, and fostering global consumerism.
Key Highlights
1. Navigating a Transformative Landscape
Economic Environment:
- Shifts in interest rates challenge profitability and prompt reinvention among financial institutions.
- After a long period of low rates, institutions now face heightened capital and liquidity requirements.
Fintech Disruption:
- Incumbent financial institutions now represent just 60% of the industry's value, down from 90% a decade ago.
- Fintech competition has spurred innovation in payments, private credit, and customer service.
Tech-Driven Transformation:
- The “tech arms race” drives efficiency, cost-cutting, and innovation.
- AI offers opportunities for new client services, improved risk management, and accelerated growth.
2. Key Challenges Identified by Industry Leaders
Managing Risk and Complexity:
- Heightened regulatory costs and fragmented internal silos increase operational and financial risk.
- Clients are seeking streamlined, automated solutions to address these challenges.
Modernisation and Digitalisation:
- Competitive pressures and technological advancements push institutions to adopt innovative solutions.
- Technological leadership is essential to remain relevant.
Balancing Public and Private Markets:
- Ensuring robust and accessible public markets is crucial for wealth creation and economic growth.
- Regulatory cooperation across regions is necessary to maintain market vibrancy.
3. Regional Opportunities in Asia Pacific
Rising Consumerism:
- ASEAN and India are leading a middle-class expansion, fuelling formalisation and economic growth.
- Adoption of digital technology and real-time payments creates significant opportunities.
Digital Applications and Tools:
- Real-time payments and digital platforms are gaining traction, enhancing accessibility and efficiency.
- ASEAN’s dynamic economies present fertile ground for innovation and investment.
4. Vision for the Future
Institutional Adaptation:
- Financial institutions must streamline processes, manage complexity, and integrate advanced technologies to thrive.
- Collaboration between incumbents and fintechs is essential for addressing rising customer expectations.
Harnessing AI for Growth:
- AI-driven solutions provide new client offerings, efficient risk management, and growth potential.
- Emphasis on leveraging AI responsibly to maintain consumer trust.
Public-Private Synergy:
- Vibrant public markets remain central to global economic resilience.
- Enhanced collaboration with regulators can create a harmonised global financial ecosystem.
Conclusion
The financial services industry stands at the nexus of innovation and reinvention as it enters 2025. With a focus on managing complexity, fostering collaboration, and leveraging technology, financial institutions are well-positioned to drive economic growth, create value for clients, and build a more inclusive global economy.
Watch Full Session
Speakers:
- Ari Sarker, President, Asia Pacific, Mastercard
- Melissa Guzy, Co-founder & Managing Partner, Arbor Ventures
- Tal Cohen, President, Nasdaq
- Yang Peng, Chief Executive Officer, Ant International
Moderator:
- Nick Studer, President & Chief Executive Officer, Oliver Wyman