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ISFS614: Digital Banking — Session 5 readings, Delivering state-of-the-art…
ISFS614: Digital Banking — Session 5 readings
External environmental pressures
Customer pressures
(value adding / creation)
Consumer demand of convenience
Demand for personalised service
Price awareness
Privacy concerns
Competitive pressures
(reducing costs)
Constant attack on premium clients
New business models (i.e., move towards universal banking / financial institutions)
Operational pressures
(reinventing operations)
Market information is intensive, yet still largely paper-based
Inflexible, proprietary and legal systems hindering speed to market and product adaptability
Process re-engineering
Regulatory pressures
New risk management requirements
Regulatory and accounting reforms
Revenue erosion
-
Cost management
Rationalise process and infrastructure
Sourcing of biz / tech services
+
Revenue growth
Quality service delivery
Product differentiation
Regulation & compliance
Managing risk and protecting brand value
Changing business models
Competition from non-bank companies
(i.e., big tech / e-commerce)
Large user bases
Low online acquisition costs
Big data customer insights
Internet banking licenses
Technologies
DevOps
Analytics
Blockchain (DLT)
Artificial Intelligence
(Machine Learning)
Agile Development
Agile Processes (RPA)
Design Thinking
Open APIs
SMART Sensors (IOTs)
Cybersecurity
Cloud Technology
5G
Financial Technology & FinTechs
Regulators
⚔
Protect banks
(by regulating non-banks)
Protect consumers / investors
(by regulating banks)
Increasing acceptance of innovation in a controlled manner using the "Regulatory Sandbox" concept
Key regulations to digital banking
PDPA (Personal Data Protection Act Singapore)
GDPR (General Data Protection Regulation)
EU’s PSD2 (Payment Services Directive 2)
Forces banks to open up customers’ banking and transaction data (with customers’ approval)
Increases competition and innovation
Potential beneficial impact for customers on payments, lending and money management
Delivering state-of-the-art solutions for legacy applications
Competition from traditional and new players