Retail Banking in Asia Pacific Digital Transformation November 2016

REGIONAL REVIEW

2 Retail Banking in Asia Pacific 2016

Contents 5 | Foreword

8 | The journey to digital, Olivier Crespin, DBS Bank11 | Recognising success, DBS Bank12 | Banking in Asia in a digitally disrupted world, Sanjoy Sen, ANZ13 | Driving change through innovation, Makoto Shibata, Bank of Tokyo-Mitsubishi UFJ14 | Shaping the future of retail banking, James Griffiths, Citi16 | Meeting changing needs, Warren Cammack, Vietnam International Bank18 | Reaping the rewards of new technologies, Stuart Beaumont, Standard Chartered Bank20 | Vietcombank Digital Lab, Vietcombank20 | Macquarie's digital customer experience, Macquarie

ONLINE BANKING22 | UOB personal internet banking, United Overseas Bank22 | Instant Account Opening, Vietnam International Bank

MOBILE23 | Sunny Bank, Shinhan Bank23 | MyMo, Government Savings Bank24 | Clever Kash, ASB Bank24 | Photo-a-bill, Commonwealth Bank of Australia25 | MyVIB Watch, Vietnam International Bank25 | mAlert, Bangkok Bank25 | Sakuku, Bank Central Asia

GAMIFICATION26 | PAPA form, Krungsri Bank26 | Fiestapoin, Bank Mandiri27 | MUFG Capsule, Misubishi UFJ Financial Group27 | M2U, Maybank

BIOMETRICS28 | Speech recognition service, OCBC Bank28 | Quick Balance, Maybank

BRANCH TECHNOLOGY29 | Pegasus, Vietnam International Bank29 | Virtual Teller Machine, Krung Thai Bank30 | Pepper Robot, Mizuho Financial Group

Digital transformation

Digital innovation

MASS AFFLUENT32 | Managing high-tier customers, Supaneewan Chutrakul, Kasikorn Bank34 | OneWealth mobile app, OCBC Bank

FINANCIAL INCLUSION35 | Moving towards financial inclusivity, Jovencio B. Hernandez, PNB Savings Bank36 | Promoting financial inclusion, Bank Rakyat Indonesia36 | BRI Boat Bank, Bank Rakyat Indonesia36 | Mitigating disaster, Paolo Baltao, UnionBank

ISLAMIC BANKING40 | An expanding world, Mohamad Safri Shahul Hamid, CIMB Islamic42 | Leading the way in Malaysia, Raja Teh Maimunah, Hong Leong Islamic Bank Berhad44 | Expanding the scope of Islamic finance, Say Cheong Lim, Maybank

48 | Supporting SMEs, Bold Magvan, XacBank50 | Helping banks leverage the cloud to meet SME customer needs, Nicolas Deville, Maestrano52 | Building sustainable sales and distribution capabilities, KJ Balan, Maybank54 | Partnering to meet SME needs, ANZ Bank55 | Payments processor turns lender, Tyro55 | PEx+ Retail Merchant Payment, Hong Leong Bank56 | RHB SME e-Retail Solution, RHB Bank Berhad56 | Ureka Forum, Union Bank of the Philippines

58 | Bringing banking and comms together, Hana Financial Group60 | Seeking expertise from non-banking players, OCBC Bank61 | Partnering with start-ups, National Australia Bank

FINTECHS IN CHINA62 | A new era of financial growth, Raphaël Goué, Efma63 | Jiaojiao, Bank of Communications64 | WeLab, ING64 | Improving customer connections, ASB

NEW PLAYERS65 | The rise of the new players65 | Doing things digitally, MYBank65 | Increasing availability, WeBank66 | Improved spending tracking, Westpac66 | Enhancing exchange, Chynge66 | Better with Bitcoin, Rebit.ph

Market strategies

SMEs

Fintechs and new players

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4 Retail Banking in Asia Pacific 2016

Retail Banking in Asia Pacific: Digital Transformation is one of a series of Regional Review publications from Efma, examining a selection of the most prominent developments in the retail banking industry in specific geographies. With comment and insight from a wide variety of regional retail banking and insurance experts, this review serves as a forum for industry leaders to exchange ideas, share their strategies, discuss the common challenges they face and shed some light on the ways in which they are driving innovation both within their own organisations and across the wider region. This review brings together some of the best examples of digital transformation taking place across the Asia Pacific region through a mix of interviews, case studies, innovation highlights and report abstracts covering topics from mobile banking and branch technology to SME services and fintechs.

Compiled by:

Anne-Laure JozanHead of Content Management APACEfmaalj@efma.com+65 9620 4363

Efma headquarters10, Boulevard Haussmann 75009 Paris, France

Tel. +33 1 47 42 52 72Fax: +33 1 47 42 56 76

For general enquiries: info@efma.com www.efma.com

5

Banks operating across Asia Pacific are caught up in a whirlwind of change. The phenomenal growth experienced by the region’s financial services sector over the last decade has been stunted by a number of factors – from increased regulatory pressures and stressed assets, through to the changing expectations of customers and the emergence of a new breed of competitors: fintech and other industry players.

To succeed against this challenging backdrop, banks are realising that they need to put a renewed focus on their digital transformation efforts in order to drive innovation, create more effective distribution costs and turn the challenges presented by fintech into opportunities.

In this Regional Review we take a look at how pioneering banks across Asia Pacific are succeeding in these areas and embracing the latest in technology advances to make positive changes to the way they run their businesses and services to their customers.

From customer service robot advisors to open banking API platforms and social gaming concepts – we showcase leading banks across the region that are introducing innovative new services to boost customer engagement. We also look into some of the ways banks are evolving their strategies to meet the needs of specific customer segments.

Finally, we explore the impact of new players and fintechs in the industry, including a spotlight on some of the major changes taking place in China. We also uncover some of the most prominent new players that have come to the fore across Asia Pacific.

In addition to all of this you’ll find many more interviews and thought leadership articles – as well as more than 2,000 case studies and overviews of the best innovations that are making their mark in this growing market – on our digital innovation portals, restricted to Efma members only.

Thank you to our members who were involved and dedicated time to this second Asian report. I am convinced their experience and insights will be very valuable for the whole industry’s transformation and prospects.

Let’s stay tuned, and let’s work together to reinvent financial services.

Foreword

Vincent Bastid Efma CEO

Efma is a global non-profit organisation, established in 1971 by banks and insurance companies, Efma facilitates networking between decision-makers. It provides quality insights to help banks and insurance companies make the right decisions to foster innovation and drive their transformation. Over 3,300 brands in 130 countries are Efma members.

Headquarters in Paris. Offices in London, Brussels, Barcelona, Stockholm, Bratislava, Dubai, Mumbai and Singapore.

Learn more www.efma.com

Retail Banking in Asia Pacific Digital Transformation

November 2016