Digitisation in the cross-border money transfer industry might leave fewer opportunities for incumbent banks and operators to grow. How they cultivate alliances and digital innovation to stay ahead of competitive will be critical moving forward.
New proofs of concepts have emerged in blockchain as the industry tackles various impediments to its successful adoption. The technology initiatives would need to be complemented with stronger collaborative efforts and interoperability for future growth.
Increasing adoption of digital payments has resulted in stiff competition within the industry. Non-bank payment players have become more aggressive, aiming to grow into full scale financial service providers.
Wide discontent with conventional banks have led to the emergence of mobile-only fintech banks. However, these challenger banks are struggling to expand their customer reach, putting doubts whether they can stand against bigger traditional banks.
Emerging new competition, changing customer expectations, and reduced profitability are forcing banks in India to revisit their strategic business and operating models as well as their digital transformation and technology innovation strategies.
Vietnam’s banking sector has taken significant steps to comply with Basel II requirements. However, more measures are needed to create an effective and integrated risk management framework in the banks.
As the search for efficiency intensifies amid a slowdown in economic growth, banks continue to leverage technology to relieve cost pressures and provide increasingly complex working capital solutions that their clients demand.