Financial Fitness and Digital Banking in the Times of COVID-19:
Singapore has announced plans to issue up to five digital banking licenses as part of its efforts to add diversity to the market and move the country’s banking system to a digital economy. The move is also part of a 20-year journey of market liberalization and expansion of an existing internet banking facility that will allow local banks to create digital bank branches.
Since the Singapore Monetary Authority (MAS) announced the issuance of two all-digital banking licenses (DFM) and three wholesale digital banking licenses (DWAF), a large number of technology companies have begun to prepare for the first opportunity for the new management. . power.
The idea behind this change is to help these banks reach a larger customer segment at a lower cost than most banks are looking for today. Digital banking licenses are a new chapter in Singapore’s journey towards banking liberalization and will ensure that Singapore’s banking sector remains resilient, competitive, and vibrant.
According to the Monetary Authority of Singapore (MAS), non-banking organizations can apply for a license and offer digital banking services. In its latest move, MAS said it will issue up to two full digital banking licenses, allowing licensees to provide financial services and accept deposits from retail customers, and up to three major digital banking licenses that they license to small and medium-sized businesses. . can empower large corporations. (SMEs) and other non-SME retail segments.
Singaporeans can use a more efficient banking system at their fingertips. In addition, digital banks can go a step further with more personalization when it comes to product recommendations based on all the data they have collected. Since digital banks have less overhead to maintain, the cost of maintaining bank branches and ATMs can lead to higher interest rates for customers.
Digital banks, also known as challenge banks, offer customers a way to manage their money, allowing them to perform banking transactions entirely from their smartphones. With a digital bank, you can log in to an account in minutes, get a card (and even a virtual card) relatively quickly, take advantage of useful features like a low exchange rate, smart security test, and more.
By relying on big data, analytics, and artificial intelligence (AI) to improve the customer experience, digital change also automates every step in front of and behind the bank and everything in between.
Opening an account with a digital bank is a paperless process and with lower operating costs, digital banks can rate their services and products more competitively than their physical counterparts.
The small footprint of digital banks – the MAS regulation for digital banks provides for one physical branch – also means that a minimum number of employees is required, saving staff time for more valuable activities. Relationship managers need to spend less time collecting customer data and more time researching.
Today’s customers are pioneers, using the latest technologies that have changed the way they interact with their banks. Digital banking makes banking simple, convenient, and available everywhere.
FinCraftTM Digital Banking Suite helps financial institutions deliver compelling digital banking experiences and is designed to build, engage and expand customer relationships. Nelito offers digital banking suites from Omni-Channel, which consist of basic banking, mobile banking, internet banking, and banking solutions. It empowers you to innovate and grow, deliver a seamless customer experience, and deliver exceptional operations.
With digitization looking to change the traditional banking business model, there are many positive aspects for banks and other financial institutions that can use it in Singapore and across ASEAN.