How Do I Sign Massachusetts Banking Presentation

How do i industry sign banking massachusetts presentation online

hi everyone my name is lebron and this is my digital banking and fintech presentation on 28 june 2019 mes announced that it will give up to five digital banking licenses in singapore the purpose of this is to enhance further competitions within traditional banks to be more innovative and test evolving customers expectations the new licenses look set to create new partnership opportunities between banks non-banks fintechs and large corporations my big question here is how is digital bank the future of banking so a true digital bank is not defined by the number of branches apps or user experience it is built on a value proposition that most products and services are delivered digitally its customers expect to use digital channels for their day-to-day banking activities the digital bank's infrastructure is optimized for real-time digital interactions and its culture embraces the rapid change of digital technologies so a sustainable digital banking model means that the bank optimizes its customers interactions processes products and data around digital technologies while constantly seeking on how to enhance customer value and experience through the implementation of new products and services while maintaining a substantial revenue to sustain their business operations hence these technologies are used to enhance higher touch services digital channels are ideal for some activities while face-to-face interactions are required for others banks need to excel at both by providing the convenience of digital channels when convenience is needed and engage with customers intimately when a personal touch is valued more some of the examples here would be ing direct which operates cafes so that banks can reach out to a wider audience live old bank decided on a branches model but operates private jets to allow its bankers to personally meet with clients prior to closing a loan hello bank offers multiple ways for customers to contact the bank including real-time mobile tax check so some of the possible implications if a bank does not possess if they do not have a sustainable digital banking business model would be financial inclusion so in a deloitte report they stated that the top two concerns of sustainability are energy efficiency and financial inclusion both ranked at 88.9 in terms of priorities hence a lack of financial inclusion could mean that some people do not have access to banking services or some who choose to lend from alternative lenders those who are those which are called the underbanked due to inconvenience of travelling to a bank to take up a loan this could also lead to a loss source for potential revenue for banks some of the sustainability sustainability initiatives are shown in the slide below the next issue is environmental issues banks that have a sustainable banking model will invest in green bonds which is a fixed income instrument that especially to raise money for climate and environmental projects by placing their money to fund for these campaigns the campaigns will have the financial ability to provide better support for pollution prevention sustainable agriculture and etc hence financial institutions will play a key role in this transition to a low carbon environment so as you can see in this financial report singapore was ranked the top four of the global financial centers index which was once spot away from its head-to-head rival in the asia-pacific region hong kong as singapore is known to be a top global financial hub it must maintain its reputation and not lose out in this fiercely ever-changing environment and hence the issuance of digital banking license in the near future smes and the growing mobile savvy millennial population will start to lean more towards these digital banks as they are more underserved by traditional banks due to their strict credit scoring in a report one in four smes are rejected by traditional banks hence this states that borrowing from traditional bank is tougher compared to a digital bank however by transacting all your information online this could lead to higher risk of crimes such as identity theft money laundering and etc this may be this may be the implication of digital banks in the near future until appropriate measures are put in place in the long term smaller banks will be affected the most this is because of their small company size they will be easily overtaken by these digital banks which may have a large sum of capital to expand its operations due to better banking services that these digital banks can provide clients may be more likely to switch over to these digital banks causing the smaller banks to collapse in the long run so compare by comparing singapore and hong kong singapore has a higher mobile penetration rate than hong kong this means that the number of active mobile phone users in singapore is more than in hong kong this suggests that there is a growing demand for digital bank in the near future as singapore is embracing an e-payment society when we can go cashless when everything can be done digitally on the phone some of the other statistics are shown to compare between singapore and hong kong in the slight below so what does value destruction mean value destructive competition means that when an established sector that has a lot of value is replaced and loses value an example is when the entry and popularity of ride-hailing such as grab uber destroyed the value of the taxi industry by having value destructive competition banks will try to have a competitive advantage over each other by gaining higher market share which often relates to economies of scale and higher productivity so why is so harmful for the finance landscape at large if a bank were to gain market share through the value destructive competition if banks gain a higher market share this means that their market power is higher and thus they can cause higher barriers for new entrants entering the financial landscape they will also be the monopoly in the banking industry as they are known to be the most financially stable however this means that there will be low competition and innovation in the financial landscape furthermore a strong customer base means more inflow of revenue coming in for the bank to expand its operations this will cause it to be too big to fail bank due to the economic size of the bank and should there be any collapse of faults in the bank it will cause a global financial crisis such as the 2008 global financial crisis hence value creation for singapore is essential the idea behind increased competition is to benefit customers by providing them a wider range of products and services to choose from especially the underserved segments which new digital banks use technology to deliver more efficient banking solutions in conclusion the smartphone industry has revolutionized the world to make things so seamless and easy that everything can be done by a swipe on the phone without these smart technologies that wouldn't be what we call digital banking and that everything will be done so traditionally as banking grows more complex it is more difficult to deliver seamless customer experiences and consistency across these digital channels banks and credit unions are responding by using advanced digital technologies and new business models to build better customer experiences with digital banks there will be enhanced data utilization so as to process key insights to identify consumers needs to recommend the suitable products and services by using more alternative data collected from consumers databases in addition digital banks are faster innovative and they make e-payments feel so seamless convenient and easy to use times have changed and now consumers are much more demanding of the traditional banks to provide them with a better user experience with all these factors in consideration it is slowly but surely that the future of banking lies digitally when everything is done through the phone but what about these traditional banks that have been with us all this while will they be left behind abandoned due to new entrants of digital banks or will they work with these digital banks so as to change and evolve the banking system to a whole new level with that i've i've come to the end of my presentation thank you so much for your attention