Some 58 percent of global respondents predict that they will completely cease to exist in the next five to ten years unless they change their business models. (Photo: VNA)
The ‘Evolve or be extinct’ report was conducted by FT Focus and surveyed over 500 senior banking executives globally to gain insights into their perception of the banking industry, now and in the future.
The results illustrate the urgent need for banks to modernise their offerings, with 58 percent of global respondents predicting they will completely cease to exist in the next five to ten years unless they change their business models.
Pham Quang Minh, General Manager Vietnam at Mambu, said: “What we are seeing in Vietnam in particular is increasing demand for online and mobile banking services from consumers that is driving digital transformation of banks. Online transactions in Vietnam for the first four months of this year jumped 66 percent compared with the same period last year, which has been accelerated enormously by the pandemic.”
“There’s also been a huge increase in the use of e-wallets, payments via smartphones and QR codes, and high demand for ‘instant credit’ solutions such as Buy-Now-Pay-Later, particularly among those segments of the population that remain unbanked or underbanked. Vietnam’s consumers are demanding digital financial solutions, and our industry is rising to the challenge, with banks like Timo, TNEX and Cake at the cutting-edge of digital banking gaining attention around the world. This is an exciting time for Vietnam, but as this research report shows, those banks that are reluctant to take a digital leap risk becoming extinct.”
Looking more closely at Asia Pacific, the FT Focus report indicates that the region is lagging behind other regions on transformation, however, APAC banks are taking steps to ‘catch up’ to the rest of the world, with plans to increase investment in big data, machine learning and blockchain at significantly higher rates than other regions.