Recent Fintech Fireside Asia Webinar The conference, titled “Monetizing Banking Transaction Data Through Effective Engagement”, brought together fintech and banking experts to discuss how banks can leverage vast amounts of transactional data to drive customer engagement, increase customer lifetime value and amplify business impact.
The panel featured Colin Ding, Chief Transformation Officer; Vietcombank; Nauman Bashir, Head of Digital and Customer Value Management Standard CharteredMukesh Piranha, Executive Vice President and Head of Digital Banking Techcombank; and Dorrell Blitz, vice president of strategy and business development. Personality StudiesThe discussion was moderated by Urs Boldt, a veteran in the fintech and banking industry.
The evolution of data usage in banking
Collin Ding began the discussion by tracing the evolution of data usage in banking over the past few decades. He noted that before automation, banks had the richest data sets due to their personal interactions with customers. However, as automation increased, banks lost some of their intimate knowledge of their customers.
“We lost a lot of things because of automation. Now we’re looking at how to get it back.”
Colin said.
Collin Dinh, Chief Transformation Officer, Vietcombank
Since then, banks have gone through a phase of viewing transactions as an expense, to driving convenience and adoption, to collecting transaction data, and finally to using that data in credit decisions.
Collin emphasized the importance of data privacy as banks move to make greater use of transactional data, saying:
“Data privacy is paramount. Data privacy is and will continue to be the most important element of any use of data. And it’s a governance issue that all banks take very seriously.”
Financial Services Industry Trends
Commenting on Singapore’s trends, Nauman Bashir said, “Singapore is at the forefront in many areas of effective use of data.”
He emphasized Regulatory Sandbox, Digital Banking license, Open Bankingand About API as a key development that has driven innovation and improved customer experience.
Naumann also said: Trust Bankis a digital bank launched by Standard Chartered Bank in partnership with a local e-commerce company, which has gained nearly one million customers and built a strong balance sheet in just two years.
Mukesh Piranha, EVP and Head of Digital Banking, Techcombank
Mukesh Piranha discussed trends from the perspective of emerging economies, noting the growing demand for ESG and green finance products. He also highlighted the importance of leveraging digital solutions to enhance offline channel capabilities and develop “Super Relationship Managers”.
Mukesh said,
“Obviously there is real-time payments, and then there is how to holistically connect all of a customer’s journeys, end-to-end, from payments to wealth creation, and deliver it all digitally.
And don’t limit digital to just the end user, use it to enhance offline channels and branches too, and make relationship managers super relationship managers by providing data-driven technology solutions.”
Implementing a Data-Driven Strategy
When it comes to implementing a data-driven strategy, Dorel Blitz emphasized the importance of starting with a clearly defined business case and strategy.
“The technology isn’t the problem; it’s already solving most of the problems. The key is to start by defining the business case and the strategy to support it.”
Dorrell said.
He also highlighted the importance of banks thinking about how to deliver value to customers and the right channels to increase customer usage.
Dorel Blitz, VP of Strategy and Business Development, Personetics
Techcombank’s Mukesh Piranha agreed, adding that data quality and governance are key prerequisites for successful implementation.
“Remember that any tool is only as good as the quality of the data you have. If the data is not clean, or if the data is not properly managed and structured, many of these implementations will fail.”
He warned.
Mukesh suggested starting with a pilot, refining it based on the results, and then implementing it while continually refining the approach.
The role of the branch in a data-driven world
Panelists also discussed the role of branches in a data-driven world, with Nauman Bashir emphasizing that branches will continue to play a key role, especially in high-value transactions, advisory services and relationship building.
“The value of human contact and personal interaction is invaluable and will continue to be valuable.”
He said.
Naumann noted that branches can serve as experience centers where customers can provide feedback, participate in financial literacy workshops and exchange ideas.
Vietcombank’s chief transformation officer Collin Dinh agreed, saying branches aren’t going away anytime soon.
“Never underestimate the value of the branch because that’s where we get that real personal touch.”
He said.
Collin also challenged the notion of separate channels, arguing that banks should focus on building a common sales and servicing architecture that integrates digital and data capabilities across all channels.
Collaboration with fintech and new entrants
When asked about collaborations with fintechs and new entrants, Nauman Bashir acknowledged that banks have traditionally been reluctant to collaborate, but that the situation is changing rapidly.
Nauman Bashir, Head of Digital and Customer Value Management, Standard Chartered Bank
“I think there’s a lot of value in collaboration that a bank alone can’t do, or a partner alone can’t do.”
He said.
“Without them working together, we can’t create the experiences, services and products for our customers.”
Naumann is the founder of Trust Bank and Buy now, pay later partnership Providers are recognized for successful collaborations that have created value for customers.
The Future of AI and Human Capital in Banking
The panelists also Generative AI He discussed the future of legacy technology issues and human capital costs in banking, and while he acknowledged the potential of AI, he warned against overestimating its capabilities.
“I don’t think it’s going to happen in the near future. First of all, there’s a lot of excitement about generative AI and so on, and how AI is going to take over the world and therefore we won’t need humans. I think that’s a long way off in the future.”
Mukesh Piranha said.
He suggested that AI and technology would be used to augment the capabilities of human bankers, developing “Iron Man suits” that could empower bankers with knowledge and data to better serve customers.
The role of transactional data and AI in the future of banking
As banks continue to navigate the evolving landscape of data-driven customer engagement, it’s clear that transactional data has great potential to drive business impact and improve customer experience.
By focusing on data quality, governance and strategic implementation, and encouraging collaboration with fintechs and new entrants, banks can unlock the power of this valuable asset to enable more personalized, proactive and impactful interactions with customers.
While technology and AI will undoubtedly play an increasingly important role, panelists agreed that the human touch that bankers and branches provide will remain essential to building trust and deepening relationships with customers.
Watch the full webinar, “Monetizing Banking Data Through Impactful Engagement” here: Fintech Fireside Asia YouTube Channel:
