Singapore
Co-creation and Data Analytics Crucial in the Future of the Finance Industry
15th July 2022
Disruptive Changes in the Finance Sector
In the last decade or so, there have been profound changes in the finance sector, driven a lot by data insights and technology. This trajectory that has been set is not only going to continue but accelerate. Particularly, technology is expected to optimize and, to some extent, reprioritize and redelegate labor resources. Tasks that were previously manual will continue to be automated as human talent is upgraded to more meaningful, value-adding roles.
Realizing the strategic value of technology in charting their future, banks are focusing a lot on technology. The technology departments of tier 1 banks in particular have grown into very large divisions with in-house capability for application development. As for tier 2 banks, they will have to collaborate with technology solution providers as well as the startup community to keep pace.
Given the pace of acceleration and innovation within the financial industry, even bigger banks will find it hard to do everything if they truly want to be agile and customer-centric. This is where the assistance and innovative capabilities of technology solution providers and the startup community can come into play.
The Role And Importance Of Data Have Evolved For Financial Institutions
Data today is the lifeblood of the financial industry. What financial institutions do with that data –how they collate it, analyze it, build upon it, develop new revenue propositions and services, and use it to acquire new customers –is what determines the progress of any financial institution. There is no division within any financial institution that has not been profoundly transformed by the data revolution.
Given the centrality of data to any financial institution and the increasing use of online channels as well as mobile devices, there is also a heightened need to put in place the most robust cybersecurity frameworks, as any compromise of data can cause irreparable reputational damage and significant money loss. Besides the cybersecurity risks, data is also used to assess the extent of types of risks, such as credit risks, market risks, business risks, compliance risks, operational risks, liquidity risks, and economic risks. In short, data is critical to the success of any financial institution.
Deepening Relationships With Customers Through Data Analytics
Data is the key to understanding customers –their current needs, future needs as well as their amenability to new services and products that financial institutions roll out. Data is the key to also understanding customers’ risk profiles, their credit assuredness, as well as their relative revenue potential. In addition, the valuable insights that they yield can be used to design new products and services, and thus are key to staying ahead.
NEC’s strength in no-code design, combined with data analytics, means that we can identify customers' needs and product features faster than even traditional, agile design approaches, which means that customers' needs can be fulfilled in a more responsive, human-centric manner.
Data analytics is the most powerful tool we can have to become customer-centric. By understanding the customer’s cross-section of needs, we want to help financial institutions solidify their relationships and build long-term loyalty. We need to traverse time and space in a sense –understanding the customer’s past needs, anticipating future needs, as well as fulfilling their needs across a region. Data is central to all of this and through data analytics, we can uncover cross-selling and upselling opportunities more efficiently.
Co-Creation Is Key
At NEC, we believe in partnership-driven innovation. We recognize that every client will have a unique problem statement. As such, we also approach every project as an opportunity to co-create with the client to ensure a truly customized solution that addresses their pain points. Every client engagement is not a project to fulfill an ‘order requirement’ but a conversation, where together with our client-partner, we create the customer experience and journey, always thinking about their long-term interest.
Today, the startup community is brimming with inventive energy. We are tapping that energy, by establishing links and building an ecosystem of co-creators. In line with our thinking that the future belongs to the most agile, we are ready to create new businesses and operational models to solve customer pain points, and as such are actively on the lookout for like-minded enterprises.
We are truly committed to this process and as a testament to it, we will invest to create proofs of concepts, which the client need not initially invest in. Only upon demonstration of value would they need to start investing. Together, we believe we can bring innovations into the finance industry that are fitting in the new Web 3.0 world.
Suresh Neelakantan
Business Development Director
NEC Asia Pacific
An accomplished digital transformation veteran with over 20 years of experience in the banking industry, Suresh leads transformational thinking with proven results across the Digital Product Management spectrum. Being one of the leaders in the NEC Asia Pacific Value Chain Innovation Lab, he drives digital evolution and manages co-creation partnerships with financial institutions and fintech to provide innovative solutions that have resulted in increased revenue and market share for clients.
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