The FinTech space can be overwhelming with a lot of buzzwords – DLT, EmFi, DeFi, Web 3.0. Fundamentally, Ms Fernn Lim, Chief of Staff, Nexus, SC Ventures, notes that it’s about going back to meeting user needs, sharing that no one wakes up thinking about the bank, but everyone needs banking. The key question however for banks would be on how they can make banking easier, seamless and ubiquitous for end-users.
Within the Banking-as-a-service (Baas) solution space - Lim sees 3 key ways where banking will evolve.
1. New business models – Traditionally, banks are often used to serving the large corporates and the high net worths (HNWs) leveraging their own brand. With the BaaS model and new partnership/distribution capabilities, banks can now reach new customer segments; and are now able to widen the targeted customer segments, lower their customer acquisition cost (CAC) and provide a new revenue stream for the bank.
2. Financial Inclusion – By partnering with e-commerce platforms and providing financial access to their end-users, banks can now reach the previously unbanked population thereby, driving the financial inclusion agenda. For example, users who stay in the archipelagos would traditionally not have a bank account or any credit history. With BaaS – banks can now reach these clients, provide them with different banking products, help them build their credit score – thereby fulfilling the financial inclusion agenda.
3. New data – With a new client segment, comes a new set of data and a new set of customer behaviour that banks can better analyse. This helps banks better understand their clients and design better products for them.
To find out more about the future of banking from Fernn Lim, Chief of Staff, Nexus, SC Ventures, register for Bedok Career Conversations today.
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