Insights from Kopi Chat: Who will define the future of FinTech and Banking?
NUS Enterprise was privileged to have Dennis Khoo, Managing Director & Regional Head of Digital Banking in UOB, and Vipin Kalra, Chief Executive Officer of BankBazaar International to share their insightful observations on emerging trends in the finance industry during our Kopi Chat session at BLOCK71 Singapore. The session was facilitated by Kris Leong, Vice President of Walden International.
Here are 5 takeaways on the future of banking:
- Firstly, consumer is king.
Understanding customer experience is the most important aspect of banking today. Fundamentally, consumers are value seekers and will turn to financial institutions that can give them the best banking experience.
2. Building an environment of trust is the most crucial factor in the financial industry.
Both the incumbents and challengers of the FinTech industry must discern the key source of trust at every point in the customer experience journey. Examining customer behaviour from a practical perspective helps them to do ascertain customer’s comfort level and improve the experience at every touchpoint.
3. Consequently, adaptability to market needs is key for survival.
For banks, the concept of finding consumers at their trusted marketplace or platform is a foreign idea. Consumers have always been approaching them instead of vice versa. Today, that has changed and is changing. One key strength of FinTech start-ups is their ability to respond to consumer needs very quickly by adjusting their business models and product offerings because they are typically lean.
4. On the other hand, having a financially sustainable business model is just as important for emerging FinTech companies.
The most popular growth strategy for new start-ups is in giving huge monetary incentives and discounts to the early adopters of their technology. This has become easier with VCs being bolder in taking risks with start-ups. To survive in the long run, start-ups must have a sustainable profit-generating business model.
5. Finally, emerging FinTech start-ups and existing banks can exist in mutually beneficial spaces to leverage on each other’s strengths.
As both speakers agree, the best relationship for FinTech start-ups and incumbent banks to nurture is a symbiotic rather than competitive one. In the end, both parties have the same goal in mind — to serve the needs of their customers better.
For the full conversation, watch the video here:
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