This is part 1 of a 3 part series about innovation in the FSI sector. If you like this article, don't miss part 2: Best Practices Implementing Cutting Edge Tech in FSI and part 3: Driving Innovation with Legacy Systems in FSI
As the pressures of digital disruption force companies to either transform or die, companies in Asia's BFSI sector are rushing to integrate cutting-edge technologies and roll-out innovative new services to their customers.
Fortunately, thanks to rapidly advancing technologies, developments in the regulatory landscape and the initiative of leading BFSI organisations, we are seeing incredible examples of innovation within the sector on a monthly, if not weekly, basis.
To celebrate this trend, we will showcase in this article a selection of the latest and greatest innovations offered by Asia's leading BSFI organisations, which we believe represent the future of BFSI services not just in the region, but worldwide:
OCBC Pioneers Blockchain Technology for Transfers
In November 2016, OCBC Bank became the first bank in Southeast Asia to use blockchain technology to make local and cross-border payment fund transfers. The successful pilot transaction took place between the bank and its subsidiaries, OCBC Malaysia and Bank of Singapore, using a payment blockchain solution jointly designed by OCBC Bank and local banking payment solutions company BCS Information Systems (BCSIS).
Speaking about the project, Praveen Raina, Senior Vice President, Group Operations & Technology, OCBC Bank announced: "Blockchain technology is the most transformative technology to date. It is set to revolutionise the financial industry and change the way we work .... We hope this will be a catalyst for more banks to adopt the blockchain technology so that, together, we can achieve efficiency and cost effectiveness while delivering more high-value financial services to our consumers."
After full integration of this payment solution, OCBC will be able to send inter-bank payments between banks in Singapore and overseas without requiring a payment intermediary. Other benefits of this technology include greater security against fraud, faster funds transfers, and greater transparency in the sense that transactions can be more easily tracked. As a result, OCBC Bank is already planning to extend the use of blockchain technology to other financial products and service applications.
UOB's Mighty Secure
Whilst OCBC's blockchain trial is likely years away from mainstream adoption, UOB has taken a more immediate approach to enhancing security with its Mighty Secure security feature. Since launching in December 2016, this breakthrough service allows users of the existing UOB Mighty mobile banking app to use their smartphone as a digital security token instead of having to rely on a separate device.