1、The future of financeand payments in Asia PacificFinance DNA-The Future of finance and paymentsFinance DNA-The Future of finance and payments4545Trend 1:Financial WellnessTrend 2:Banking Goes Green Trend 3:Inclusive Banking Trend 4:Humanized Banking Trend 5:Purposeful RewardsTrend 6:New Payment Fron

2、tiersTrend 7:The Investment Revolution Trend 8:The Credit MakeoverTrend 9:AI-Powered Insurance Trend 10:Branches Reinvented6 6101013131818232326263030333337374141Understanding Your Customer Now and In the FutureContentsFinance DNA-The Future of finance and paymentsA Now,Next,Future Vision for Financ

3、eToday we are continuing to live in an uncertain world.In the last few years,weve faced global political uncertainty,weve dealt with the disruption of a pandemic,and we are now coping with a period of prolonged inflation.But what does this mean for consumers and how can brands navigate todays landsc

4、ape?In this report,we explore the themes that will shape the next ten years in terms of consumer behavior and brand response in the Finance and Payments sector across 10 countries in Asia Pacific:Australia,Japan,Indonesia,Singapore,Thailand,Malaysia,Vietnam,South Korea,China and India.We have identi

5、fied 10 key trends which will explore in detail the consumer shifts impacting finance and payments over the next decade.We will chart the Expected Trend Trajectory by visualising its projected intensity in the next years based on our objective analysis of the relative impact of consumer change in be

6、havior and attitudes on the trend in question.Finance DNA uncovers the actions and motivations of todays consumer and provides recommendations for brands.Exploring both the short-and long-term implications of each trend,we provide a framework for brands to respond effectively to evolving consumer de

7、mands,attitudes and behaviors for the next decade.Finance DNA-The Future of finance and paymentsA recovering China and a resilient India are dulling the effect of the slowdown in the US and Europe on Asia Pacifics growth forecast,which is estimated to be a modest but hopeful 3.8%in the latter half o

8、f 2023 for the rest of Asia-Pacific,excluding China.1While the region is still expected to drive 70%of global growth,2 much of this will depend on how well governments and policymakers can shore up the resilience of their domestic economies.Although the IMF expects a decrease in inflation rates,it p

9、rojects average inflation will still be higher than pre-pandemic levels in more than 80%of countries globally,even into 2024.3 Asia-Pacific will continue to see declining headline inflation reflecting lower energy and food price pressures,but core inflation rates will remain at levels that could con

10、tinue to create hardship at the household level and exert pressure on consumers real income and spending.Such economic conditions have clearly impacted consumer mindsets.Despite the overall growth story,consumers in each country report less optimism.A recent survey revealed that 55%felt at risk from

11、 financial hardship over the next 5 years in the APAC region.4 Additionally,people worry about inflation,poverty,and food shortages,and theres a rising mention of the word struggling in various regional surveys.APAC consumers are also generally concerned about their personal finances.Research conduc

12、ted across various countries in the APAC region revealed that 18-22%Asians strongly agreed that they often worry about their personal finances.5 To confront these hurdles and emerge stronger,financial institutions need to help consumers build economic resilience and financial stability.It is against

13、 this backdrop that this report will explore the core trends that will shape the future of finance and payments over the coming decade.With the cost-of-living context sharply in focus,the report will outline how the current economic situation will likely accelerate or impact the trajectory of the tr

14、ends outlined.1 S&P Global,Economic Research:Economic Outlook Asia-Pacific Q3 2023:Domestic Demand,Inflation Relief Support Asias Outlook|2 International Monetary Fund,May 2023|3 International Monetary Fund,May 2023|4 Foresight Factory|2022 March:In China,India,Malaysia,Russia,Singapore,South Korea,

15、Thailand the sample is 16-74|5 Foresight Factory|2021 March:In Brazil,China,India,Mexico,Russia,Singapore,South Korea,Thailand,UAE,Vietnam the sample is 16-74Finance DNA-The Future of finance and paymentsThe Economic BackdropOptimism amidst uncertaintyThe 10 Trends Your Brand Must Master Today:Finan

16、ce DNA-The Future of finance and paymentsTrend 1:Financial WellnessTrend 2:Banking Goes GreenTrend 3:Inclusive BankingTrend 4:Humanised BankingTrend 5:Purposeful RewardsTrend 6:New Payment FrontiersTrend 7:The Investment RevolutionTrend 8:The Credit MakeoverTrend 9:AI-Powered InsuranceTrend 10:Branc

17、hes ReinventedTrend 1:Financial WellnessFinance DNA-The Future of finance and paymentsAs wellbeing needs continue to expand in the 2020s,financial wellness is increasingly recognised by consumers as just another contributing factor of holistic health.Seeking financial empowerment and control over fi

18、nances,consumers will turn to new and fragmented sources of influence for support.Looking ahead,expect financial wellbeing and literacy to become a core focus for consumers and brands alike,as the link between healthy finances and happiness is further underscored by the cost-of-living crisis.The COV

19、ID-19 pandemic highlighted the link between healthy finances and a stress-free life.Though some households were able to save,many consumers felt their finances deteriorated during the crisis.A negative change in personal finances exacerbated money worries,and also made the link between financial and

20、 mental health clear.This is evidenced by the fact that 76%of global consumers who felt their mental health got a lot worse during the pandemic,also worried about their finances at that time,compared with 48%of consumers who felt their mental health had not been affected.1In the coming years,financi

21、al wellbeing will become increasingly synonymous with general wellbeing as the link between healthy finances and a happy,healthy life is further underscored by the cost-of-living concerns.Only 9%of APAC consumers in Australia,South Korea and China say they are happy with their personal financial sit

22、uation.254%In line with this,we expect banks and financial service players to provide more proactive guidance and educational content to help consumers improve financial literacy,budgeting,saving,and investing and prevent their finances negatively impacting their mental health.Encouraged by more ope

23、n conversation around personal finances in both public and private spheres,consumers will also start to open up more to others about their salary,spending and savings,with not only financial professionals but also family and friends.As the saying goes,a problem shared is a problem halved.Although so

24、me consumers will continue to be less forthcoming when it comes to talking about money,viewing it as taboo and in conflict with their values of privacy and dignity.Finance DNA-The Future of finance and payments1 Foresight Factory|Base:34856 online respondents aged 16+,Global Average(27 markets),2021

25、 March2 Foresight Factory|Base:11000 online respondents aged 16+,Global Average(9 markets),2022 January3 Foresight Factory|Base:39400 online respondents aged 16+,Global Average(27 markets),2022 March12345678910Trendof consumers in APAC feel personally at risk from financial hardship over the next fi

26、ve years.3Trend in actionUOBs Wellness Festival in Singapore had booths,workshops,and stage activities that showcased the Banks myriad array of wellness propositions promoting the holistic well-being that it offers to customers.UOB is the first and only financial institution participating in the nat

27、ional initiative,and highlights the importance of every aspect of wellness,including physical,mental,emotional,and even financial,to the holistic well-being of customers.9Being in the top 1%of the most shared podcasts globally on Spotify,Girls That Invest discusses the importance of financial litera

28、cy and investments.Kaur and Gupthan also have a six-week investment course three times a year that is designed to help their audience gain financial freedom.Financial literacy is key to achieving financial wellness,something which fintech targeting kids,teens,and young adults will continue to advoca

29、te for with more accessible,proactive,and often,gamified financial education.Already in 2020,young consumers were most likely to have used an app that motivated them to stick to a personal goal A 38%uptake among global 16-24s vs.15%among consumers aged 55+.7In APAC,only 15%learnt how to manage money

30、 in school,with the Chinese being most likely to have had formal education(22%).8Looking ahead,financial therapy will emerge as a new kind of counselling that helps consumers spend,save,and invest in line with their values,empowering them to build better financial futures.Consumers will become more

31、open to sharing personal details of their financial lives,and many will turn to social media for answers,putting pressure on banks to offer more accessible advice.Already popular with a niche audience,finfluencers(financial influencers)will become more mainstream due to their ability to identify wit

32、h consumer issues and provide practical solutions.In 2019,27%of APAC consumers followed a 27%of APAC consumers followed a money management influencer.money management influencer.1 1Indeed,influencers such as Amanda Frances,AKA the Money Queen2,are growing in popularity.In 2021,following the launch o

33、f her book Rich As F*ck,which aims to demystify the topic of money and empower readers to improve their finances,Frances launched a new Money Loves You meditation,which helps consumers to set the intention to live a more financially stable life.Her use of social media channels plus the way she combi

34、nes mindfulness,spirituality,and financial savviness helps make her holistic financial wellbeing content and advice more accessible and engaging,especially for younger women who feel that taking control of their finances is out of reach.Meanwhile,influencers Humphrey Yang3 and Tori Dunlop4 have more

35、 than one million followers on TikTok,where Gen Z seek advice on credit,investing,saving,taxes,and budgeting.Influencers like Simran Kaur5 and Sonya Gupthan6,featured in the Forbes 30 under 30 Asia,have gained popularity due to their Girls That Invest podcast.Finance DNA-The Future of finance and pa

36、yments1 Money management influencers:Foresight Factory|2019 May:In Brazil,China,India,Malaysia,Mexico,Russia,Singapore,South Korea,Thailand,UAE,Vietnam the sample is 16-64|2 Amanda Frances,(xoamandafrances),Instagram,https:/ Humphrey Yang,humphreytalks,TikTok,https:/ Tori Dunlop Profile,Forbes,https

37、:/ The 2023 30 Under 30 Asia Content Creators And Influencers Educating And Entertaining The Public.Forbes.https:/ Financial literacy app usage:Foresight Factory|Base:41473 online respondents aged 16+,Global Average(27 markets),2020 May|8 Financial education at school:https:/ UOB Group,UOB launches

38、first Wellness Festival highlighting importance of financial wellness to customers holistic well-being,June 202312345678910TrendFinance DNA-The Future of finance and paymentsTrend IntensityNow(2023)The cost-of-living crisis will worsen financial wellness and the already fragile mental well-being,hei

39、ghtening the need for proactive financial guidance and education to help consumers take control of finances.Next(2024-2025)Emerging services like financial therapy and more accessible and engaging online advice will empower more consumers to spend,save and invest in line with their values,and overal

40、l build a better financial future.Future(2025-30)Financial wellness will be more pervasive as cost-of-living concerns wane and as fintech players targeting Gen-Z with gamified services see them possess a higher level of financial literacy than previous generations.Trend in actionUS financial service

41、s giant,Truist1,purchased mobile savings gamification app Long Game,with a view to incorporate more interactive features into its banking services.Long Game uses prize-linked savings and casual gaming to encourage customers,particularly Millennial and Gen Z populations,to improve financial education

42、 and adopt smarter financial behaviours.Similarly,GoHenry,which provides debit cards and financial education apps to 6-to 12-year-olds,acquired Pixpay,which offers similar services to teens in France and Spain.GoHenry wanted to combine its expertise with Pixpays in financial education to accelerate

43、not only GoHenrys growth but also the financial fitness of even more kids and teens globally.2GajiGesa,Indonesia and Southeast Asias leading Earned Wage Access(EWA)platform is now offering its services on WhatsApp to provide millions of workers in Southeast Asia with a fast,secure,and convenient way

44、 to access their earnings in real-time.GajiGesa has become APACs first and only employee wellness and financial benefits company to offer salary-on-demand on WhatsApp.3Expect this education to come to fruition in five-plus years time as Gen Z grow up to have a higher level of money savviness than pr

45、evious generations.Knowledge of positive financial management behaviours,such as saving for a specific goal or investing small amounts regularly,will be fully embedded.This will also allow younger consumers to share their knowledge with their peers,further democratising access to financial education

46、.Financial WellnessExpected Trend Trajectory in the 2020sFinance DNA-The Future of finance and payments12345678910Trend1 Truist Acquires Mobile Savings Gamification Pioneer Long Game,Truist,https:/ GoHenry Offers Financial Education App Beyond UK Borders Following Pixpay Acquistion,The Fintech Times

47、,https:/ First in APAC,GajiGesa Launches Earned Wage Access on WhatsApp,GajiGesa,https:/ DNA-The Future of finance and paymentsTrend 2:Banking Goes GreenIn the years to come,climate change will remain thedominant global threat,with 63%of APAC consumersfeeling personally at risk of its effects over t

48、he nextfive years.1This is prompting consumers to adopt eco-ethical values which are transforming their relationshipwith the products and services they interact with on adaily basis.These values-based consumer behaviourshave entered banking,with sustainable credit cards,impact investing and ESG stra

49、tegies now commonplace.The question of who is principally responsible for the futureof the planet is a complicated one.While 43%of global consumers believe the main onus lies on governments(vs 24%for business)2,rising distrust means consumers will actually belooking to brands,including banks,to help

50、 effect positivechange.They are expecting companies to demonstrate ambitious environmental,social and corporate governance(ESG)activity.Climate targets will need to be reviewed and rewritten to reflect this,with science-based,quantifiablecommitments that give back more than they take rather thansust

51、aining the status quo.In line with this,products and services that involve the heftyconsumption of natural resources,such as Bitcoin mining,willcome under intense scrutiny and may become more tightlyregulated.Divesting from fossil fuels will become a main areaof scrutiny from consumers,with Russias

52、war in Ukrainefueling momentum towards efforts to reduce the dependencyon natural gas,particularly as the connection with conflictand insecurity becomes more pronounced.Consumers willpush banks to redirect these investments towards carbon-negative and neutral companies.Finance DNA-The Future of fina

53、nce and paymentsBeyond decarbonisation,consumers will expect banks to use their huge financial power to take a more holistic view of sustainability,using their influence to support climate justice and biodiversity,and pushing for climate-positive operations across the business.Consumers will not hes

54、itate to switch banks if they find that theirs does not do enough.This behaviour is expected to be accelerated by economic uncertainty,which will cause brand loyalty to fluctuate.44%of APAC consumers already say they always or sometimes consider sustainability when choosing financial products such a

55、s credit cards and investments,rising to 53%among Millennials.3Banks will also need to be allies to consumers personal fight in reducing their carbon footprint.There will be increasing uptake of new apps and wearables that help consumers track the impact of their transactions and investments,suggest

56、ing alternatives if the impact is too great and rewarding them for reducing their footprint.Interest amongst consumersis already reaching the mainstream,with 65%in APAC interested in an app that tracks their personalimpact on the environment.41 Climate change:Foresight Factory|Base:12884 APAC averag

57、e online respondents per country aged 16+Brazil,China,India,Malaysia,Singapore,South Korea,Thailand,Vietnam,Indonesia,2022 March2 Foresight Factory|Base 10629 online respondents aged 16+,Global Average(9 markets),2022 January3 Importance of corporate sustainability:Foresight Factory|Base:11000 onlin

58、e respondents aged 16+,Global Average(9 markets),2022 January 4 Consumers environmental impact:Foresight Factory|Base:11243 APAC average online respondents per country aged 16+Brazil,China,India,Singapore,South Korea,Thailand,Vietnam,Malaysia,Indonesia,2021 March12345678910TrendConsumers personal ac

59、tions will also take the form of sustainable investing.A nascent trend observed across APAC shows that a sizable minority in Australia(14%),South Korea(15%),and China(15%)are very interested in investment funds that invest in sustainable companies.1While ethical investing investments which are scree

60、ned to avoid companies or industries that have a negative impact on society or the environment,such as weapons or tobacco have been around for a while,we are now seeing growth in sustainable investing,which takes environmental,social,and governance factors into account when assessing whether a compa

61、ny is worth backing.Environmental factors include climate change policies,pollution,and waste management,while social considerations are those relating to employee conditions,community engagement,and health and safety.Governance,meanwhile,relates to business practices such as employee diversity,exec

62、utive pay,and tax policies.We expect that by 2030,the proportion of APAC consumers using sustainable investment funds will have grown from 14%to 20%,while the proportion interested will have grown from 16%to 29%.2As consumers place more and more trust in their banks to help them in their journey tow

63、ards sustainable living,we will see an influx of banks claiming to be green.As the amount of skepticism around greenwashing increases in line with this,banks will need to be explicit about how their environmental,social,and corporate governance(ESG)initiatives work responding to greater demands for

64、transparency including proof of impact.New certifications will be developed to give consumers the peace of mind that their claims are substantiated.Banking goes greenExpected Trend Trajectory in the 2020sTrend IntensityNow(2023)Value-based brand choice grows in prominence and financial brands are re

65、quired to demonstrate eco-friendly credentials in a way that can be trusted and avoids any claims of“greenwashing.”Next(2024-2025)Consumers seek branded support for their personal green financing-gearing their savings,investments and choice of products towards the sustainability matters they most ca

66、re about.Future(2025-30)Consumers seek branded support for their personal green financing-gearing their savings,investments and choice of products towards the sustainability matters they most care about.12345678910TrendFinance DNA-The Future of finance and payments1 Foresight Factory|Base:9182 onlin

67、e respondents aged 16+,Global Average(9 markets),2022 January|2 Foresight Factory|Base:893-1830 online respondents per country aged 16+,China and South Korea 16-74,2022 JanuaryFinance DNA-The Future of finance and paymentsTrend 3:Inclusive BankingFinance DNA-The Future of finance and paymentsAs cons

68、umer demands shift from passive inclusivity to active empowerment,companies in all sectors,including banking and finance,will be increasingly expected to not just represent but more actively cater to and empower ever-more diverse customers,communities and needs.Targeting specific groups will enable

69、financial service providers to better connect with customers values and experiences on a meaningful level,while general promises of inclusivity will appear inadequate.Looking ahead,expect financial inclusion to become a widespread aim across the banking and finance industry,as brands try to help con

70、sumers from all backgrounds build a more financially secure future.Access to financial services can be difficult for consumers in certain groups,as a lack of credit history,unorthodox routes into the labour market,and language barriers have often made it hard to obtain bank accounts,credit cards,or

71、other loans.Moreover,the shift to a digital payments society,where digital is replacing cash as king,also exacerbates access to finances for the unbanked and the underbanked.Financial inclusion is critical for the promotion of sustainable development and economic growth across Asia Pacific.Only 59%o

72、f adults in the region have a bank account,with account ownership ranging from only 33%and 37%of the adult population in Cambodia and Laos,respectively,to 96%in Thailand.1But new startups are beginning to address these issues by offering services specifically designed for consumers who have trouble

73、accessing banking services.This will be particularly relevant during tough economic times.Trend in actionMother Finance is Myanmars first licensed fully digital lender.They have a mobile app,and plan to become the go-to super app for lending,savings,insurance,personal finance advisory,financial lite

74、racy and learning.They are currently developing a new credit product for emigrants traveling to the Gulf and other South/Southeast Asian countries for employment.21 Global Finance Magazine,Worlds Most Unbanked Countries 2021,February 2021|2 32 Startups Selected for the Financial Solutions for Migran

75、ts Accelerator Program,Village Capital,https:/ more and more bank branches close down in response to increased automation of everyday banking tasks,another vulnerable group at high risk of financial exclusion is the older population who often dont have thetechnology,digital know-how,or physical or c

76、ognitive proficiency to access online banking.Whilst uptake is growing,27%of APAC consumers aged 75+still dontowna smartphone.1Financial institutions are constantlyinnovating to make services easily accessible,and showinga decidedly caring,empathetic attitude towards this group.For instance,in India

77、,Bank of Barodas mobile banking app feature World Gold helps the elderly manage their personal finance.2 It uses hyper-personalised communication to assist those who struggle with the use of digital mobile technologies.It has larger in-app fonts and buttons for those with visual problems or conditio

78、ns,such as arthritis.3Inclusivity also means ensuring that typically underserved groups are better represented and have equal access tothe latest financial offerings.In 2021,46%of APAC consumers aged 16-24s thought that advertising was inadequately representing diversity in their country.4Allbrands

79、in all sectors will need to work to improve diversityand representation externally.However,companies are increasingly expected to be inclusive in a more meaningful way,or risk beingaccused of purpose-washing.As general promises ofinclusivity are increasingly deemed inadequate,banksand financial serv

80、ice providers will also be expected toensure diversity and inclusion efforts start at home.This challenges brands to undertake an audit of allaspects of customer interactions and internal business practices,considering,for instance,what the company board of directors looks like in comparison with th

81、ecommunities in which it operates.Trend in actionAxis Bank in India implemented new practices and policies for employees and customers of the LGBTQIA+community.These policies allow same-sex couples to open a joint bank account,such as a term deposit or savings account,and they can make their partner

82、s nominees as well.6Finance DNA-The Future of finance and payments42%of APAC consumersrising to 47%among Gen Zagree that its more important for brands to represent minority groups in their leadership teams than in their advertising.514%of millennials in APAC say they have stopped using a brand becau

83、se it treated their workers badly;14%did so because it wasnt inclusive enough;and 7%did so because they didnt have people from diverse backgrounds in their leadership.71 Smartphone ownership:Foresight Factory Base:Audience Filter among 799-4869 online respondents per country aged 16+Brazil,China,Ind

84、ia,Malaysia,Mexico,Russia,Singapore,South Korea,Thailand 16-74,UAE,Vietnam 16-64,Indonesia 16-54,2022 March|2 Elderly Managing Personal Finance,Bank of Baroda,https:/www.bankofbaroda.in/-/media/project/bob/countrywebsites/india/content/media/press-releases/media-release-launch-of-bob-world-gold-27-0

85、4-2022-28-06.pdf|3 Financial Accessibility for the Elderly,Aranca,https:/ Lack of Representation:Foresight Factory|Base:11134 online respondents aged 16+,APAC Average(10 markets),2021 March|5 Importance of representing minority group:Foresight Factory|Base:12157online respondents aged 16+,APAC Avera

86、ge(10 markets),2022 March|6 Axis Bank India,Feminism In India https:/ Reasons for boycotting brands:treating workers badly Foresight Factory Base:685-4521 online respondents per country aged 16+(11 markets),2022 March12345678910TrendTrend in actionUK-based Jove offers ultra-flexible insurance cover

87、for workers such as drivers of ride-hailing services like Uber.1 US-based Karat Financial offers unique financial solutions to online creators,giving them access to services like personal credit building and purchase protection.2 Moove,which bills itself as the worlds first mobility fintech,partnere

88、d with financial group MUFG and car manufacturer Suzuki to promote financial inclusion for mobility gig workers across Africa.3Meanwhile,in Singapore,Lucy,a mobile banking and business-building services app,helps entrepreneurial women start and grow their businesses,and provides a suite of different

89、 services like early wage access,loans,savings accounts,remittances,and peer support networks.4Meanwhile,new and underserved groups requiring targeted banking and finance solutions will continue to emerge in the next decadeas employment,ownership,and business models change and evolve.For example,as

90、more people embrace the flexibility of gigging and the autonomy of the creator economy,they will seek out precise fintech solutions that support their small business goalsfrom peer-to-peer lending sites to freelance-oriented current account services.Finance DNA-The Future of finance and payments11 T

91、he Future of Finance and Payments,Finance DNA,https:/dentsu.ee/wp-content/uploads/2023/05/dentsu_Finance_DNA_global_report_final.pdf,2 Karat Financial,Pioneer of the Creator Economy,Secures$70M and Partners with Visa,Fintech Global,https:/fintech.global/2023/07/20/karat-financial-pioneer-of-the-crea

92、tor-economy-secures-70m-and-partners-with-visa/#:text=Karat%20Financial%20focuses%20on%20the,to%20their%20unique%20revenue%20streams|31 The Future of Finance and Payments,Finance DNA,https:/dentsu.ee/wp-content/uploads/2023/05/dentsu_Finance_DNA_global_report_final.pdf|4 32 Startups Selected for the

93、 Financial Solutions for Migrants Accelerator Program,AppsAfrica,https:/ this way,diversification and personalisation is increasingly both a consumer expectation and industry innovation goal,with banks that target very specific groups able to connect with their values,needs,and experiences on a deep

94、er and more meaningful level.Finance DNA-The Future of finance and paymentsLooking ahead,banks will similarly aim to connect people with money,values and experiences,creating resources and products that help consumers make the most of their wealth in an inclusive environment.As products evolve,consu

95、mers in historically underserved groups will feel better catered to and understood by the industry.Overall,financial inclusion will become a widespread aim across the industry,as brands try to help consumers from allbackgrounds build a more financially secure future.Inclusive BankingExpected Trend T

96、rajectory in the 2020sTrend IntensityNow(2023)Prolonged economic uncertainty willenergise calls for inclusive banking,withtraditional financial services as well asstartups boosting efforts to lessenfinancial exclusion and support theunderbanked and unbanked.Next(2024-2025)General promises of inclusi

97、vity will be inadequate,and more financial service providers will emerge that target very specific groups to better serve their unique needs and values.Future(2025-30)Financial inclusion will be a widespreadindustry aim,and moreconsumers willseek to”bank-by-values”.More niche andtailored products wi

98、ll emerge that bettercater to previously underserved groups.12345678910TrendFinance DNA-The Future of finance and paymentsTrend 4:Humanised BankingFinance DNA-The Future of finance and paymentsIn 2020,there was a growing demand for human,natural,and empathetic brand interactions via all channels(as

99、a counter-trend to the rise of more automated financial services).Indeed,there is a growing expectation that financial brands offer avenues to human service where needed and that digital or automated services embed human-like propositions to provide more consistent customer experiences across offlin

100、e and online channels.In 2022,57%of APAC consumers used a chat messenger service to speak to a customer service assistant at least monthly.1 While such findings dont diminish the importance of face-to-face,human interactions for a significant proportion of consumers,they point to the rising preferen

101、ce and expectation of more virtual engagement with financial brands in the 2020s.1The current cost-of-living crisis is also driving a need for more compassionate and supportive brand engagement;helping customers navigate their financial future in uncertain times with a strong degree of understanding

102、 and empathy.As a result,the need for human-led brand services will remain important,particularly in moments when things go wrong,or the customer requires a specific issue to be redressed.1 Chat messenger service:Foresight Factory Base:12884 APAC Average online respondents per country aged 16+(10 co

103、untries),2022 March 12345678910TrendFinance DNA-The Future of finance and paymentsAs a corollary,there will be growing demand for financialbrands to provide digital and convenient tools to engagewith human customer service agents for more emotionallyresponsive and empathetic support from offering vi

104、deo call services to using social media to communicate directly with consumers.Indeed,a growing number of consumers want brands to reply to posts about them on social media.51%of APAC consumers agreed“I like it when brands comment on posts about them on social media”.1Direct to human customer servic

105、e channels will likely beof utmost demand for affluent consumers who seekpremium banking solutions.DBS uses big data,AI,and data analytics to meet customers digital expectations and to enhance customer experiences.The bank also embeds digital and data in its offline business,to ensure that its custo

106、mers receive consistent advice regardless of the touchpoint.For example,the Relationship Managers are equipped with data-driven conversation pointers to enhance discussions requiring complex advice.With technology evolving,DBS aims to deepen its expertise with AI-enabled machine learning,conversatio

107、nal platforms,AR and VR among others.2Indias Axis Bank3,and global giants like JPMorgan and Deutsche Bank are also exploring using ChatGPT and similar AI tools to deliver enhanced conversational and personalised services.460%of Gen Z consumersin APAC now use chat messenger services to interact with

108、brands on at least a monthly basis.5Trend in actionHSBC in the UK offers a video call support featureas part of its online advice service,My Investment.The new feature,Remote Assisted Digital6allows customers to complete a booking request throughthe My Investment public website page andorganise a Zo

109、om appointment to complete theirapplications.This follows the introduction of alive chat functionality,which allows customers tohave on-screen conversations at any step of theinvestment process with HSBC Wealth Engagement Officers.1 Comment on social media:Foresight Factory 1 Comment on social media

110、:Foresight Factory Base:12604 APAC Average online respondents per country aged 16+,China,India,Malaysia,Singapore,South Korea,Thailand,Base:12604 APAC Average online respondents per country aged 16+,China,India,Malaysia,Singapore,South Korea,Thailand,ViVietnam,Indonesia 16etnam,Indonesia 16-54,2022

111、March|2 Mastering the AI 54,2022 March|2 Mastering the AI Advantage:How DBS Transformed Into a Digital Leader,DBS,https:/ DBS Transformed Into a Digital Leader,DBS,https:/ d-intointo-a a-worldworld-classclass-digitaldigital-leader/|3 Axis Bank May USE ChatGPT to Talk to Customers,Axis Bank,leader/|3

112、 Axis Bank May USE ChatGPT to Talk to Customers,Axis Bank,https:/ Wall Street emb10840561.html|4 Wall Street embracing AI:JPMorgan,Deutsche Bank and others are pushing into AI and ChatGPTracing AI:JPMorgan,Deutsche Bank and others are pushing into AI and ChatGPT-like bots,Business like bots,Business

113、 Today,https:/www.businesstoday.in/technology/news/story/wallToday,https:/www.businesstoday.in/technology/news/story/wall-streetstreet-embracingembracing-aiai-jpmorganjpmorgan-deutschedeutsche-bankbank-andand-othersothers-areare-pushingpushing-intointo-aiai-andand-chatgptchatgpt-likelike-botsbots-38

114、3949383949-20232023-0606-02|5 Foresight Factory 02|5 Foresight Factory Base:Generation Z Base:Generation Z among 799among 799-4869 online respondents per country aged 16+Brazil,China,India,Malaysia,Mexico,Russia,Singapore,South Korea,4869 online respondents per country aged 16+Brazil,China,India,Mal

115、aysia,Mexico,Russia,Singapore,South Korea,Thailand 16Thailand 16-74,UAE,Vietnam 1674,UAE,Vietnam 16-64,Indonesia 1664,Indonesia 16-54,2022 March 54,2022 March-APAC Average considered|6 HSBC UK APAC Average considered|6 HSBC UK Add New Video Call Feature to Its Online Advice Investment Service,HSBC,h

116、ttps:/www.about.hsbc.co.uk/newsAdd New Video Call Feature to Its Online Advice Investment Service,HSBC,https:/www.about.hsbc.co.uk/news-andand-media/hsbcmedia/hsbc-ukuk-adadd d-newnew-videovideo-callcall-featurefeature-toto-itsits-onlineonline-adviceadvice-investmentinvestment-service#:text=Video%20

117、call%20appointments%20are%20available,unique%20financial%20circumstances%20and%20needs.service#:text=Video%20call%20appointments%20are%20available,unique%20financial%20circumstances%20and%20needs.12345678910TrendDigital services that provide real-time assistancebut with an empathetic voice will also

118、 be animportant part of future services aimed atcustomers in financial distress.Looking ahead,digital platforms can be used not only to providereal-time human services,but also as platform tobuild communities;whether that be to create enhanced brand to customer engagement,orcustomer-to-customer inte

119、raction.Longer-term,financial brands will need to embedreal and simulated forms of human engagement viamore instant digital channels.Indeed,there is aconsistent uptick of using chat messenger servicesto interact with brands.In the 2020s,instantmessaging channels will offer more convenientmeans for c

120、ustomers to engage with financial brandswhen most needed.Seven in tenAPAC consumers still say they prefer to speak to a human being when making a complaint about a product or service.1Finance DNA-The Future of finance and paymentsThe core challenge for brands will be to offerautomated solutions that

121、 can respond rapidly tocustomer needs while maintaining a sense of humaninteraction.Indeed,a core focus for financial brandsover the coming decade will be to increasinglyembed human-like propositions into fullyautomated customer service and brand engagementchannels.To achieve this,AI will be vital t

122、o providedigital assistants that react and respond tocustomer needs in ways that seem empathetic andemotionally responsive to the context andchallenges faced by the customer.Trend in actionMalaysian bank CIMB introduced a conversational style,real-time chatbot for commercial banking called EVA.Refer

123、red to by the bank as their electronic relationship manager,it is available 24/7.It can handle numerous,simultaneous queries with the help of AI and Natural Language Processing.Many traditional financial institutions have launched robo-advisory platforms and there is a proliferation of fintech robo-

124、advisors across Asia.2At present,the best examples of such technologybeing utilised are coming from outside the financialsector,for example,in the mobility sector,the useof AI to provide more human-like automatedservices.Recently,the Geely Galaxy L6 PHEV3 sedan was unveiled in China.It is a plug-in

125、hybrid electric vehicle that offers AI voice recognition and interaction.The top models also support level 2 advanced driving assistance.At CES 2022,the AIsoftware company Cerence unveiled its Co-Pilot,an in-car assistant,that uses continuous learning to predict and respond to the needs of passenger

126、s,analysing passenger voice,gaze,gesture,and touchto understand preferences and personalinteractions accordingly.4Such technology shows the potential for automatedAI services to become increasingly human-like,understanding and responding to the consumersstate of mind and context in real time,with ev

127、er moresophisticated forms of natural communication.In the2020s,financial brands will need to invest in suchtechnologies to embed a more human feel in futureautomated services and functions.Indeed,this willbecome more critical as consumers experienceleading innovations in this space across theirinte

128、ractions with brands in other sectors.1 Compliant:Foresight Factory Base:11377 APAC Average online respondents per country aged 16+,China,India,Singapore,South Korea,Thailand,Vietnam,Malaysia,Indonesia,2021 March(Reported trend)|2 AI is ascendant in APAC financial services,Kapronasia,https:/ Geely G

129、alaxy L6 PHEV sedan with 1,370 km range launched in China starting at$15,900,GizmoChina,https:/ Cerence Co-Pilot,Cerence,https:/ BankingExpected Trend Trajectory in the 2020sTrend IntensityFinancial insecurity among consumers accelerates needs for human interactions from finance brands to offer supp

130、ort and reassurance-seeing more brands add avenues for human customer services via digital channels.Increased interest for brand platforms that allow for community building and P2P customer interactions.Growing investment in AI services sees customer expectations of humanized virtual channels grow q

131、uickly.Now(2023)Next(2024-2025)Future(2025-30)Use of biometric and emotional tracking technology quickly improves the ability of automated brand services to mimic human interactions-such services become the growing norm across the sector.Finance DNA-The Future of finance and payments12345678910Trend

132、Finance DNA-The Future of finance and paymentsTrend 5:Purposeful RewardsFinance DNA-The Future of finance and paymentsIn the 2020s,rewarding consumers for adopting In the 2020s,rewarding consumers for adopting behavioursbehaviours that promote some form of social good and benefit will be a that prom

133、ote some form of social good and benefit will be a key feature of B2C loyalty programs.In particular,rewards will key feature of B2C loyalty programs.In particular,rewards will be aimed at nudging more ecobe aimed at nudging more eco-friendly and healthy habits.friendly and healthy habits.Moreover,t

134、he finance,banking and insurance sector is Moreover,the finance,banking and insurance sector is optimally placed to optimally placed to capitalisecapitalise on this trend due to the sectors on this trend due to the sectors ability to access spending data to monitor and reward such ability to access

135、spending data to monitor and reward such behavioursbehaviours.In times of economic uncertainty and financial pressures,it is no surprise that consumers are becoming more focused on optimising their commercial choiceswith customer loyalty at risk when brands fail to consistently provide value for mon

136、ey.In 2022,29%of APAC consumers agreed with“If a brand I like stopped offering promotions,I would stop buying the brand”compared to 24%who agreed with this statement in 2019.1 As brands face a mounting loyalty battle in the 2020s,banking,finance and insurance brands are well placed to be industry le

137、aders in driving new forms of customer reward.This is due to two key reasons.Firstly,consumers are showing a growing interest in finance brands collecting and monitoring spending patterns to offer an improved service.Secondly,a growing area of interest for loyalty schemes is reward programs that giv

138、e discounts based on the customer adopting more eco-friendly actions.Almost two thirds(63%)of APAC consumers claimed to be interested in such a service.2 Taken together,it is clear that more purpose/value-based reward schemes will offer competitive edge in the 2020s,and financial brands are strongly

139、 placed to respond to such opportunities due to the sectors ability to access spending data to monitor and reward purpose-or value-based actions.Trend in actionCredit card company Ness1 promises to be the card that keeps you healthy.The credit card offers five times as many points for health and wel

140、lness and medical purchases,which can then be exchanged for wellness-focused rewards such as exercise classes and spa treatments.The brand also has a connected digital platform,The Ness Well2,where it recommends health and wellness products that have been rigorously tested by its team,as well as a n

141、ewsletter that helps subscribers discover new,high-quality wellness products.1,2 This Card is Wellness.Ness.https:/ Gen Zconsumers in APAC would be interested in a financial service which linked to your bank account or credit card and analysed personal spending to help you budget better and meet you

142、r personal financial goals.3There is also growing investment in this trend within the insurance sector.Avibra is an insurance company that describes itself as your personal wellbeing,risk,and protection advisor.The company aims to help customers be the best version of themselves while also convertin

143、g positive habits into tangible rewards.1 As customers improve their physical health,personal,and social relationships,meet their financial goals,and advance their careers,Avibra rewards them with an increase in life insurance coverage.Customers who complete Wellbeing Advisor activities which includ

144、e filling in a gratitude journal,taking quizzes on wellbeing topics,meditating,watching videos on how to boost financial and physical health,and doing a brain workout earn$10 of extra insurance coverage.The finance and banking sector is especially well placed to drive new forms of reward schemes tha

145、t encourage more sustainable behaviours.Having access to consumer spending data,the sector has been an industry leader in building eco and carbon tracking services.For example,DBS Banks LiveBetter is a one-stop digital platform with a carbon calculator that automatically generates a profile of the u

146、sers eco-impact.2Looking ahead,it is expected that more banking and finance brands will look to incorporate such carbon and eco-tracking into loyalty scheme programs.A sign of what is to come is provided by the US-based startup,Future,which created a rewards card,in partnership with Visa,that offers

147、 a higher rate of cashback on spending that has a lower carbon footprint.The Visa FutureCard provides 5%cashback on a range of purchases that are deemed to be climate smart,including public transport,electric charging,second-hand clothes,and plant-based food alternatives.Again,the card also helps us

148、ers to monitor their carbon footprint.3In APAC,AXA Hong and Macau have a partnership with Carbon Wallet,a green lifestyle reward platform,and have launched AXA Go Green Rewards,a campaign that recognises customers efforts to reduce their paper use by opting for digitalised insurance processes.4Finan

149、ce DNA-The Future of finance and paymentsPurposeful RewardsExpected Trend Trajectory in the 2020sTrend IntensityNow(2023)New investment and start-up activity sees purpose-led rewards provide competitive edge for some finance brands.Customer interest grows and a wider set of brands start to innovatio

150、n in this space.Next(2024-2025)Advanced data tracking of eco and health behaviors makes purpose reward schemes more sophisticated,accurate and tailored to the customer.Such advances result in rapid adoption of such schemes by brands.Future(2025-30)Growing differentiation in issues customers care abo

151、ut,and better data technology to track engagement with such issues,results in stable demand for purpose rewards but more tailored to a wider set of topics/issues.Taken together,the shifting consumer attitudes and expectations towards loyalty,combined with the early innovation apparent in the finance

152、,banking,and insurance sectors,points towards a longer-term future where an increasingly common and successful part of B2C loyalty schemes are built around the notion of rewarding for social good.Moreover,the sector seems better placed than any to capitalise on this trend over the coming decade.1 Li

153、ve A VIBRAnt Life.Avibra.https:/ DBS introduces first-of-its-kind digital sustainability platform LiveBetter to spur customers towards eco-friendly living.DBS.https:/ Green Purchases Earn High Cash-Back Rates With the FutureCard Visa Card.CNET.https:/ AXA partners with Carbon Wallet.Insurance Busine

154、ss America.https:/ DNA-The Future of finance and payments1,2 Best Customer Loyalty/Rewards Initiative is Rewards+by UOB Singapore.The Asian Banker.https:/ Trend in actionIn Singapore,UOB1provides a holistic view of rewards in a single app as part of its Rewards+program.Customers can receive personal

155、ised deals,grab exclusive coupons,search for deals,track cashback,and rewards points,make QR payments,and redeem their rewards,all on one platform.UOB Rewards+program features the banks proprietary digital engagement engine,which brings together best-in-class solutions in artificial intelligence(AI)

156、,machine learning,and data analytics to personalise the reward experience for each customer.Since its launch,the number of monthly coupon visitors increased by an average of 50%month-on-month as the bank has continued to drive greater value for its customers and merchant partners.The bank also saw a

157、n increase of 14%in the number of transactions for November 2022 against November 2021.212345678910TrendFinance DNA-The Future of finance and paymentsTrend 6:New Payment FrontiersDriven by the increased digitisation of payment technologies,the COVID-19 pandemic,and the growing need for convenience i

158、n point-of-sale(POS)systems,consumers are making use of more digital payment methods,which are slowly becoming the default.In the coming years,digital technologies will allow consumers to use a range of payment methods,from e-wallets to cryptocurrencies,further increasing expectations and making the

159、 POS more efficient and convenient than ever.Throughout the rest of this decade,contactless payments will continue to rise at the expense of cash,digital payments will become the default,and e-wallets will increasingly bypass traditional banks.Indeed,there has been a steady uptick in consumers using

160、 their smartphones as payment devices over the last two years,with 46%of global consumers indicating that they used their mobile devices to pay for something at checkout rising to 54%among Millennials.1 A key driver for future contactless payments will continue to be convenience:cashless payments ar

161、e efficient,secure,and also allow the consumer to use tools to analyse their spending.Through integration with mobile and app interfaces,cashless payment methods enable tracking,monitoring,and scrutiny of spending for automated and integrated budgeting purposes,giving the consumer full control over

162、their expenditure and purchasing habits.By 2025,it is predicted that two in five(41%)of the global population will have used their fingerprint as a form of I.D.to make a purchase,up from just one in four(24%)in 2018.As is the case today,uptake will remain highest among consumers in emerging Asia,wit

163、h China and Vietnam predicted to have the highest levels of usage by 2025.5Looking ahead,the cost-of-living crisis and continued downward pressures on consumer spending will increase the need for consumers to have control over spend and budget accordingly.The shift towards a cashless society provide

164、s some respite for consumers concerned about money and financial risk,since it allows them to receive instant payment notifications,low balance alerts as they spend,and other clever perks.As consumers continue to adopt a digital-first approach to personal finances,it will create ever more fertile sp

165、ace for online-only challenger banks and wealth management services,as well as alternatives to fiat currencies such as cryptocurrencies.Today,we are already seeing brands that are working in collaboration to provide their customers with expanded financial services and payment methodsso that consumer

166、s can pay in the way that is most convenient or accessible to them.For example,Venmo offers a feature that allows users to convert their cashback rewards into cryptocurrencies.Similarly,other financial groups are also expanding their digital offerings.Partnering with Tradeshift,a supply chain paymen

167、t platform,HSBC has ramped up its digital offerings by embedding financial solutions into trade,e-commerce,and marketplace experiences.3Finance DNA-The Future of finance and payments1 Mobile payment:uptake and interest-Survey year:2022 March,Base:12884|2 2 Foresight Factory|Base:39400 online respond

168、ents aged 16+,Global Average(27 markets),2022 March|3 Tradeshift&HSBC team up on embedded finance joint venture.FinTech Magazine.https:/ PayPal.https:/ Biometric payment using fingerprints:uptake and interest(Which of these things have you done already and which are you interested in doing in the fu

169、ture?Used my fingerprint as a form of I.D.to make a purchase by tapping or scanning it)-Survey year:2022 March Across APAC,81%have already used or are interested in biometric payments using fingerprints.4As more people go online for their consumption needs,businesses must keep pace with digital expe

170、riences to strengthen trust and loyalty.Contactless,mobile,and biometric payments will steadily become the default within the next three to five years.27%of global consumers are using their smartphones to analyse their expenses on a daily basis.Over 1/3Gen Z(37%)and Millennials(35%)respectively.2123

171、45678910TrendIn the next 5-plus years,everyday paymentswill be feasible with a wide range of methodsand currencies,and POS may even be removedaltogether(as exemplified in Amazon Gos4checkout-free stores).For consumers,thisrepresents the ultimate convenience aspurchasing is seamless and paymentsautom

172、atic.Despite convenience being the keydriver of new payment frontiers,brands willneed to reassure consumers that they have thechoice and ability to pay on their termsproving a variety of physical and digital payment options to meet individual needs andensure noone is left behind.Trend in actionFilip

173、ino oil company Cleanfuel1 in February 2021 partnered with social app Lyka to allow customers to pay for gasoline using Lyka Gems,which are awarded in recognition of user interactions on the platform,such as rating posts or having posts rated by others.Partnering merchants and businesses can print Q

174、R codes for app users to scan and pay for real-world goods with their Lyka Gems.In this way,customers were able to pay to refuel their vehicle with interactions and time spent on social media.Finance DNA-The Future of finance and paymentsRise of cryptocurrency in APACCountries in Southeast Asia are

175、excited about blockchain technology with 41%of cryptocurrency owners describing themselves as risk takers.Cryptocurrency ownership is on the rise across APAC where millennials form the largest group of crypto owners and 36%of cryptocurrency owners in APAC being female.Most consumers support the gove

176、rnment regulating cryptocurrency but are doubtful what the future holds.21 Cleanfuel partners with Lyka App for Trendy Cashless Payments.Clean Fuel.https:/www.cleanfuel.ph/cleanfuel-partners-with-lyka-app-for-trendy-cashless-payments/|2 10 cryptocurrency trends in APAC to keep you ahead of the curve

177、.GWI.https:/ Contactless Payments:Key Opportunities,Emerging Trends&Market Forecasts 2022-2027,Juniper Research.https:/ Amazon Go.https:/ shift will give rise to new currencies,too,such as paying with ones likes on social media or positive interactions with a brand or using exclusive brand currencie

178、s awarded in return for loyalty.In APAC,smartphone penetration will exceed 99%by 2024,enabling an additional 67 million individuals to adopt mobile payments as they will possess the necessary hardware to conduct near-field communications payments via their handsets.312345678910TrendAnxieties and the

179、 underbanked in developing AsiaFinance DNA-The Future of finance and paymentsAround half of the 600 million inhabitants in Southeast Asia are either unbanked or underbanked.The scale of the problem varies by country,but many in Asia live rurally,where it is costly to provide physical banking infrast

180、ructure and access to basic financial services is an issue.Despite the accelerating shift to digital payments,almost 1 in 5 users in Southeast Asia would still rather pay with cash,according to a recent study by Kaspersky,noting that most of them were at least 55 years old and above.1According to th

181、e study by a Russian cybersecurity firm titled,Mapping a secure path for the future of digital payments in APAC,21%of respondents in the region admitted to having anxieties when completing online transactions.Older adults are not from the internet age so their worries are understandable.As per the s

182、urvey,20%of the respondents from the silent generation found it challenging to do online transactions.2To boost financial inclusion,many governments in the region are taking steps to digitize their economies.In Vietnam,for example,banks must ensure half of all transactions are digital by 2025.The ab

183、ility to meet diverse financial needs at various life stages is key to the success of financial institutions in Southeast Asia,a booming region that expects$4.7 trillion in Gross Domestic Product(GDP)by 2025 and where 70%of the adult population is still unbanked or underbanked.Banks,too,have to matc

184、h their solutions to the specific needs of customers instead of delivering one-size-for-all solutions.30Southeast Asias economy is driven by the 70 million micro,small,and medium enterprises.Underbanked,mostly accepting only cash payments and paying their employees and suppliers in cash,these enterp

185、rises are the reason that 60%of the regions Gross Transaction Value is cash-based.Such dominance of physical currency is the largest competitor to digital payment platforms while also offering its greatest potential.These businesses face an online future and a requirement to develop the capabilities

186、 to accommodate the browsing and purchasing habits of young and digitally savvy consumers.Cash usage is still dominant in Thailand,the Philippines,and Indonesia.41,2 Older adults in Southeast Asia still wary of cashless payment.I.https:/ Source of graphs:Worldplay from FIS,Global Payments Report,202

187、1|4 https:/ 12345678910TrendDemocratising commerce and helping the underbanked0.5%3%3.5%15%19%19%40%2020Charge CardPOS FinancingPre-paid CardDebit CardCredit CardCashDigital/Mobile Wallet1%3%3%15%20%11%48%2024ChargeAPAC e-com payment methods3APAC POS payment methods33%1%4%6%7%19%60%OtherPre-paid Car

188、dCash on DeliveryDebit CardBank TransferCredit CardDigital/Mobile Wallet3%0.5%2%7%4%18%65.5%Other20202021New Payment FrontiersE Expected Trend Trajectory in the 2020sTrend IntensityNowNextFuture(2023)Cost-of-living concerns will drive some to increase their use of digital payments to reap the benefi

189、ts of integrated money management.tools,while others will return to cash as a more tangible way to budget.(2024-2025)Continued bank branch and ATM closures will make digital payments the default.E-wallets will bypass traditional banks,and cryptocurrencies will become a more widely accepted payment m

190、ethod.(2025-30)Everyday payments will be feasible with a wide range of methods and currencies,including biometrics,crypto and personal data.But calls for inclusivity and mounting privacy concerns will slow some uptake.Finance DNA-The Future of finance and payments12345678910TrendFinance DNA-The Futu

191、re of finance and paymentsTrend 7:The Investment Revolution1 What Are Meme Stocks,and Are They Real Investments?.Investopedia.https:/ APAC Average online respondents per country aged 16+,2022 March.Foresight Factory|4,5,6 SJP Asia-Study finds Singapore and Hong Kong Millennials Charting a New Course

192、 in Wealth Management for Future Generations.Hubbis.https:/ The emergence of trading apps and the growing sophistication of AI is set to revolutionise and democratise when and how consumers invest.While the current cost-of-living concerns will dampen the pace of this trend,as consumers look to short

193、er-term financial planning,the desire to build long-term resilience and maximise savings will see this trend fully energised later in the decade.Following the 2008 financial crisis,as the financial industry sought to reinvent itself and attract consumers back to investing,the first AI-based services

194、 and trading apps emerged.These have come a long way,accelerated by mainstream access to smartphones,developments in machine learning technology,and the emergence of Open Banking a practice that allows banks and third-party financial service providers to secure access to banking and other financial

195、data.Cryptocurrencies have enjoyed front page media coverage,and while sentiment has not always been positive,the potential for quick returns has encouraged many young and less risk-averse consumers to invest for the first time.Similarly,Meme stocks have gained a cult-like following online,building

196、hype around a stock through conversations on platforms such as Reddit,Twitter,and Facebook.They are attracting many new investors that want to be a part of the movement-as seen in the surge in value of companies such as GameStop and AMC in 2021.1Digital wealth platforms will keep growing as more con

197、sumers seek easy and cheap access to investments.Moreover,access to fractional shares will be key to encouraging a wider audience to start investing with small amounts.Fractional shares allow consumers to purchase stocks at a set price amount,rather than by number of shares meaning the consumer can

198、purchase parts of/less than one share(e.g.,half a share or 1.5 shares).This enables consumers to access more expensive stock from larger companies and the building of more diverse portfolios for those who are new to investing and may have limited initial funds at their disposal.Consumers,especially

199、younger consumers,are looking at investment opportunities to find alternative routes to future savings.Our trended data indicates growing engagement with investment accounts by younger age groups:the proportion of APAC millennials who have stocks/investments grew from 31%in 2020 to 45%by 2022.2The g

200、amification of investing,which refers to the addition of features to make the experience more appealing and fun,will be a key characteristic of trading apps as a way to engage younger consumers.However,this approach has recently been criticised for making risky trades seem like a trivial game.Negati

201、ve commentary and connotations of addiction will grow,resulting in potential regulatory interventions to help protect vulnerable investors.Brands will need to prioritise the long-term game plan over short-term fun as they try to introduce more responsibility and safeguards into online investing.More

202、over,in the face of a boom in investing,many consumers will fear being left behind,seeking reliable information on how to safely and successfully invest their money.While many will turn to how-to videos and online tutorials in order to gain expertise,others will look to social investing platforms,tu

203、rning to peers and apps that enable social investing for advice.In light of this,educating consumers about risks,facilitating community discussion,and encouraging long-term thinking will become central pillars to digital investment offers.Finance DNA-The Future of finance and paymentsTheres growing

204、engagement in investment with 45%APAC millennials reporting having investment accounts in 2022.3Over 70%of Singapore and Hong Kong millennials say ESG is a priority up by 6%points compared to 2021,with 68%actively reviewing sustainability reports and credentials before making an investment.41 in 2 m

205、illennial investors engage with a financial adviser to manage investments,and 92%said that they received useful advice.554%of millennials have no financial plan,while one-third of those with a plan have included the cost of inflation.75%of those with no plan are making lifestyle sacrifices to secure

206、 retirement,a lot higher in comparison to the 56%of millennials with a plan.612345678910TrendAPAC consumers are investingFinance DNA-The Future of finance and paymentsIn the longer term,as consumers overcome their reticence to trust artificial intelligence,investment advice disseminated by AI will s

207、tart to enter the mainstream.This will democratise access to personalised advice,a practice historically reserved to those with higher incomes and in-depth knowledge of financial markets,as AI will be able to offer the service at a cheaper price point than human professionals.60%of APAC consumers(an

208、d 66%of millennials)already show interest in an investment service that uses AI to automatically decide where to invest their money.1In the face of rising inflation,consumers will end up with less money in their pockets at the end of the month.This may subdue the uptake of this trend to some extent,

209、as many will need to apply a more short-term lens to their spending.These consumers will gravitate to current accounts that automatically move any extra funds into investment portfolios as they become more common,and consumers are urged to make the most of any spare cash.But quickly,the returns offe

210、red by a stabilising global market and the desire of younger consumers to catch up with savings and investments will energize the trend once the current crisis has abated.The Investment RevolutionExpected Trend Trajectory in the 2020sTrend IntensityNow(2023)The cost-of-living-crisis shifts focus to

211、short-term financial planning andsubdues interest in using savings for future investments,as consumers look to build resilience for the immediate future.Next(2024-2025)As the current crisis is abated,the need to build longer-term financial resilience will see more consumers make use of the growing n

212、umber of flexible investment services made available.Future(2025-30)AI makes investment services better able to tailor portfolios to the precise needs of each user.Ease of access,and promise of longer-term returns,sees the trend accelerate and expand across the customer landscape.1 Foresight Factory

213、|Base:2889 APAC Average online respondents per country aged 16+China,South Korea,2022 January12345678910TrendFinance DNA-The Future of finance and paymentsTrend 8:The Credit MakeoverFinance DNA-The Future of finance and paymentsThough traditionally consumers have relied oncredit cards to avoid payin

214、g the full price ofproducts upfront,the rise of the Buy Now,Pay Later(BNPL)option has empowered consumerswith cheaper and more flexible credit optionsthan ever.In the 2020s,BNPL is set to become anincreasingly popular way to pay for products andservices.But as economic uncertainty continues,and awar

215、eness of the importance of financialwellbeing grows,consumers will look for ways toreduce the amount of credit they take onalsoraising calls for more ethical financingalternatives.With cash payments on the decline,contactlesspayments on the uptick,and the cost-of-livingcrisis hitting consumers hard,

216、many are seekingalternative methods to pay for and financepurchases of products and serviceswith the ability to pay in instalments instead of payingupfront an appealing option.By March 2022,38%of APAC consumers had already used a BNPL service while shopping.Uptake will likely continue to increase as

217、 the crisis boosts the need for credit among some consumers.AMastercard survey found that 50%of APAC consumers report being comfortable using BNPL today,a proportion that stands at 41%globally.1 On top of the 35%already using BNPL,a further 32%of the global consumers aged 25-34s claimed to be intere

218、sted in using BNPL in the future.2.Consumers with low or no credit scores will be themain audience for BNPL,as it provides a cheaperway to access credit and obtain products andservices without paying the full price of an itemupfront.During the COVID-19 pandemic,consumers need for flexible purchasing

219、 options was clear for their peace of mind.In a similar vein,BNPL services are now being used within the travel industry.Historically,BNPL services have been reserved for big-ticket items,but now consumers in many markets can pay in instalments for low-cost purchases,too.In time,this will be availab

220、le in more categories,such as consumer packaged goods(CPG).This shift towards more accessible and smaller credit payments has allowed previously absent sectors such as beauty,fashion,and haircare to become prominent within the BNPL space.Trend in actionIndian fintech,CRED has rolled out a BNPL servi

221、ce and a tap-to-pay feature to broaden its offerings in order to boost engagement and monetisation on the platform.CREDs foray into the BNPL category will allow customers to make seamless payments on the app across more than 500 partner merchants,including Swiggy,Zepto,and Urban Company.Users can cl

222、ear the bill at no charge in 30 days.3Joining the BNPL race,Standard Chartered Singapore has partnered with Atome to offer a wide-suite of payment options to its customers.This partnership will help promote financial inclusion for millions across Singapore.With the success theyve seen in Singapore a

223、nd Indonesia,the two brands plan to roll out this service in Malaysia as well.4Trend in actionApple has introduced a BNPL functionality to its Apple Wallet in the form of Apple Pay Later.This will allow users to split the cost of an Apple Pay purchase into four equal payments spread over six weeks,w

224、ith zero interest and no fees of any kind.The upcoming service will use Goldman Sachs Group Inc.as the lender for the loans needed for the instalment offerings.Meanwhile,brands such as Zilch are bypassing BNPL brands by allowing consumers to pay in instalments at any retailer,regardless of whether t

225、hey offer the service in-house.The start-up provides tap and pay over time,a feature that allows shoppers to spread the cost of in-store payments over six weeks.51 APAC consumers ahead in digital payments uptake:new Mastercard research finds institutional support and buy-in key to even greater adopt

226、ion.Mastercard.https:/ Base:12884 online respondents aged 16+,APAC Average(10 markets),2022 January.Foresight Factory|3 Indian fintech CRED adds buy now,pay later and tap to pay offerings.Tech Crunch.https:/ Standard Chartered and Atome partner to expand financial access and inclusivity.The Asian Ba

227、nker.https:/ Apple Wallet Updates:Apple Pay Later,Tap to Pay on iPhone and More.CNET.https:/ MUFG to start buy now,pay later service with Kanmu acquisition.NIKKEI Asia.https:/ 12345678910TrendWith convenience being the main driver of BNPL,brands are under pressure to meet ever-increasing consumer ex

228、pectations and make POS services more flexible,seamless,and transparent.45%of global consumers prefer BNPL services over credit cards because its easier to make payments.1 However,while BNPL services have been rapidly increasing in popularity,they have recently come under fire for not being transpar

229、ent enough about their impact on customers credit scores and for encouraging consumers to get into more debt than they can afford.Indeed,28%of European consumers say they do not feel like they are taking on debt if they pay using a BNPL service,while 18%are unsure whether it would be considered as d

230、ebt or not.2 Such uncertainty could cause problems for consumers down the line and represents a key factor in the argument for regulation.Looking ahead,as financial wellbeing becomes increasingly tied to general wellbeing,tighter regulations and controls on marketing and the use of BNPL services mig

231、ht follow to protect vulnerable consumers.Living through numerous financial crises,consumers are becoming aware of how BNPL brands can glamorise unsustainable spendingfor instance,encouraging unemployed consumers to buy goods they cannot afford.Finance DNA-The Future of finance and payments1 Buy Now

232、,Pay Later Statistics and User Habits.C+R Research.https:/ The psychology of debt:seeing debt for what it is.ING.https:/ Mastercards Study Shows That Buy Now,Pay Later Is Rising in Popularity in APAC.Fintech News.https:/fintechnews.sg/66423/lending/mastercards-study-shows-that-buy-now-pay-later-is-r

233、ising-in-popularity-in-apac/Digital Lending in Southeast AsiaThe digital lending industry,which includes BNPL,is forecast to hit$92 billion in transaction value in 2025 in Southeast Asia,up from$23 billion in 2020.The market is dominated by specialised fintech startups such as Kredivo,Atome,and Akul

234、aku,that use advanced technology and leverage investment support to aggressively expand their footprint,broaden their customer base and continuously enhance their BNPL capabilities.3Notably,GoTo Groups GoPayLater enables users on Indonesias leading marketplace,Tokopedia,and in the GoTo ecosystem(Goj

235、ek and GoPay)to split lump sum payments for purchases into monthly instalments over one,three,six,or twelve months.4 12345678910TrendAlong with a foreseeable increase in regulation,we are likely to see the emergence of ethical alternatives to BNPL.Save-to-buy,for instance,is regarded as a more virtu

236、ous competitor,helping consumers save up so they can afford to buy items outright rather than relying on credit.In 2020,62%of APAC consumers said they would rather save up for something than buy it on credit,suggesting save-to-buy products will become popular.138Finance DNA-The Future of finance and

237、 paymentsContinuing economic uncertainty will drive some to increase their use of digital payments to reap the benefits of integrated money management tools,while others will return to cash as a more tangible way to budget.TrendIntensityNowNextFutureContinued bank branch and ATM closures will make d

238、igital payments the default.E-wallets will bypass traditional banks,and cryptocurrencies will become a more widelyaccepted payment method.Everyday payments will be feasible with a wide range of methods and currencies,including biometrics,crypto,and personal data.But calls for inclusivity and mountin

239、g privacy concerns will slow some uptake.The Credit MakeoverExpected Trend Trajectory in the 2020sTrend in actionAustralian challenger bank,Up Bank,developed Maybuy,a save-to-buy service that creates an automated savings plan for users looking to buy something online.Once the target has been reached

240、,the user can choose to either buy the item or,if their plans change,to put the money to a different use.2Considering ongoing economic uncertainty,save-to-buy may cause interest in BNPL to decrease.Enhanced awareness of financial wellbeing will also mean that consumers are wary of taking on too much

241、 debt.Nevertheless,BNPL will continue to appeal to consumers as a means of fully embracing the present,despite financial concerns.BNPL offerings across retail and travel are enabling people to live now,pay later,something particularly appealing to younger generations.By some predictions,BNPL could a

242、ccount for a 4%share of APAC e-commerce payments by 20263.This will lead to BNPL and other alternatives becoming the preferred way for many to pay,disrupting traditional lines of credit.1 Base:787-4746 online respondents per country aged 16,2020 May.Foresight Factory.|2 Is lay-by making a comeback?A

243、ustralian bank launches save now,buy later scheme.9News.https:/.au/national/australian-bank-up-save-now-buy-later-scheme-maybuy/b15a110e-9f8f-47ff-b782-7c31123b2104#:text=Maybuy%20will%20create%20an%20automated,by%20bit%20before%20buying%20something|3 BNPL to account for 4.1%of Asia-Pacific e-commer

244、ce payments in 2026,estimates GlobalData.Global Data.https:/ Credit Makeover3914%10%5%4%4%4%4%3%2%1%1%1%1%0%2%4%6%8%10%12%14%16%AustraliaNew ZealandSingaporeIndiaMalaysiaIndonesiaChinaJapanPhilippinesTaiwanThailandHong KongVietnamBNPL payments as a share of e-commerce payments APAC 2022,by countrySh

245、are of payments valueNote(s):Asia,APAC;2021|Source(s):Global Payments Report 2023,pages 46 to 72;Worldpay;ID 1298803500281.474.752727156.781.80100200300400500600Atome(Singapore)Openpay(Australia)Rely(Singapore)Limepay(Australia)PayRight(Australia)QisstPay(Pakistan)iCare Benefits Group(Singapore)Fund

246、iin(Singapore)Note(s):Asia,APAC;as of March 28,2022|Source(s):CrunchBase;ID 1299048Amount of funding in million U.S.dollarsMajor BNPL startups APAC 2022,by total fundingFinance DNA-The Future of finance and paymentsTrend 9:AI-Powered InsuranceFinance DNA-The Future of finance and paymentsThe growing

247、 sophistication of AI is set to transform the The growing sophistication of AI is set to transform the experience of buying insurance and making claims.From experience of buying insurance and making claims.From automating the issuing and claims process of insurance,automating the issuing and claims

248、process of insurance,to being able to respond to realto being able to respond to real-timetime events via the use events via the use of advanced data collection and smart environments,of advanced data collection and smart environments,consumers in the 2020s will have access to more consumers in the

249、2020s will have access to more efficient and onefficient and on-demand insurance services supporting demand insurance services supporting them in their quest to build personal resilience to future them in their quest to build personal resilience to future financial and climate risk.financial and cli

250、mate risk.Technological advances will enable insurance brands to target a growing set of consumer needs in the 2020s resilience and convenience.Consumers have experienced significant levels of uncertainty in recent years,from the pandemic through to the current prolonged period of inflation.This sen

251、se of never normal times has resulted in consumers seeking to build resilience against potential future risk.In 2022,more than half(54%)of APAC consumers felt at risk from financial hardship over the coming five years.1 Such concerns will increase the demand for insurance and financial services that

252、 people are confident will provide the assistance needed;where and when most required.1Concomitant to such demands,consumers are also increasingly showing interest in more convenient products that can be efficiently and effortlessly tailored to their needs without significant time investment.In APAC

253、,47%of consumers claim to feel under the pressure of time in their everyday life.The figure rises to 53%of Gen Z.2 This figure rises even further reaching 56%of Millennials globally.2 Further,more than 5 in 10 consumers are willing to spend money to save time.3Such findings indicate that there will

254、be an increased demand for more efficient and convenient financial and insurance services,and more and more consumers will be prepared to pay a premium for such benefits.In the 2020s,finance,banking and insurance brands will have access to new technological advances that will enable them to respond

255、to the dual consumer demand for resilience and convenience.Today,the financial sector is increasingly able to use big data to underwrite policies with active involvement from the customer no longer required.Car,home,and contents insurance are set to be first to be automated,as risks and an items con

256、dition can be easily verified using widely available metrics,such as a cars age or a houses flood risk.At the same time,there are also new start-up companies aimed at providing bundled insurance products for increased convenience.Trend in actionInsurtech bolttech received a funding of$196 million at

257、$1.6 billion valuation.4The funding was led by Tokio Marine,5 Japans first insurance company.Other participants included new and existing shareholders,like life insurance leader MetLife through its subsidiary MetLife Next Gen Ventures 6and Malaysias sovereign wealth fund Khazanah Nasional 7.The Seri

258、es B will be used on bolttechs proprietary technology,aiming to pioneer the use of AI,advanced analytics,robotic automation,and machine learning in its operations.1 Perceived risk of financial hardship:Foresight Factory Base:799-4869 online respondents per country aged 16+Brazil,China,India,Malaysia

259、,Mexico,Russia,Singapore,South Korea,Thailand 16-74,UAE,Vietnam 16-64,Indonesia 16-54,2022 March|2 I am often under time pressure in my everyday life:Foresight Factory Base:789-4747 online respondents per country aged 16+Brazil,China,India,Malaysia,Mexico,Russia,Singapore,South Korea,Thailand,UAE,Vi

260、etnam 16-64,Indonesia 16-54,2020 May|3 I am willing to spend money to save time“:Foresight Factory Base:790-4719 online respondents per country aged 16+Brazil,China,India,Mexico,Russia,Singapore,South Korea,Thailand,UAE,Vietnam 16-74,Malaysia 16-64,Indonesia 16-54,2021 March|4 Insurtech bolttech get

261、s$196M at$1.6B valuation from investors like MetLife.Techcrunch.https:/ Tokio Marine.https:/ Metlife Next Gen Ventures.https:/ Wealth Fund wealth Khazanah Nasional.https:/.my/12345678910TrendFinance DNA-The Future of finance and paymentsLooking ahead,growing investment in AI will quickly improve the

262、 capabilities of insurance and finance brands to provide automated,personalised and speedy services.In particular,the combined use of OCR to automate the review of information related to an insurance claim and NLP to automate the review of a customers policy.There are a growing number of start-ups a

263、imed specifically at utilising such technology.For example,Sprout.ai 1is a start-up that uses AI to help insurers settle claims within 24 hours.The company uses OCR to review all required information and then uses NLP to map that information to the customers policy documents in order to automate the

264、 entire claims procedure.Utilising such technology will provide consumers with greater confidence that their claims can be resolved as efficiently as possible,responding to their unique needs closer to real time.Technological advances will also open up wider access to more instant insurance coverage

265、 for consumers.Trend in actionToday,insurance companies such as US-based Hippo Insurance 2 have already developed a rapid home insurance offer via a partnership with Cape Analytics 3,a company that uses AI and geospatial imagery to provide real-time property intelligence.With Cape Analytics machine

266、learning algorithms,Hippo will be able to target specific property characteristics and tailor policies,accordingly,providing accurate levels of coverage for each home and premiums unique to the property.For example,factors such as the roofs condition,garden debris and the presence of overhanging tre

267、es can be assessed in real time to support the underwriting process.The new data will be automatically integrated into the purchasing flow for prospective customers,ensuring that they have the most accurate information when buying protection for their home.For existing customers,this will reduce the

268、 need for in-person agent visits,delivering a streamlined home insurance experience year after year.Hippo will also proactively reach out to customers to make recommendations to mitigate potential issues,as the geospatial analytics tech captures changes to a propertys condition continuously.12345678

269、910Trend1 Sprout.ai is a start-up that uses AI.Sprout.ai.https:/sprout.ai/|2 US-based Hippo Insurance.https:/ Cape Analytics.https:/ inAI-powered insurance companies in APACAXA Insurance has introduced a new AI-powered financial planning tool in Asia called MyFinScore,which helps customers keep trac

270、k of their financial health and discover solutions that can address their needs and goals.1It helps a customer measure their financial satisfaction score calculated using an individuals financial goals as well as existing savings and protection coverage against simulated personal and market risks th

271、at determine ones future financial health.It will also offer customized product recommendations to help customers improve their scores.MyFinScore comprises a series of questions that cover personal finances,financial priorities,goal aspirations,lifestyle expectations,and risk tolerance and can be co

272、mpleted in three minutes.In India,Plum,an insurtech company has launched an AI-powered tool called PolicyGPT.2PolicyGPT is a chatbot created using the Open AI GPT-3 architecture primarily to educate users about their health insurance policies.It provides users with information about their policies p

273、urchased from Plum.The chatbot has access to user policy details and general knowledge of health insurance.It will soon have features such as voice recognition,policy advising,translation of the text into regional languages,generating insights by analyzing large volumes of data and identifying patte

274、rns,trends,and anomalies.43Trend in actionJapans Daido Life Insurance Company has been Japans Daido Life Insurance Company has been granted a patent for an AIgranted a patent for an AI-based medical based medical underwriting solution counderwriting solution co-developed with Accenturedeveloped with

275、 AccentureThe new underwriting solution uses AI to provide a preliminary assessment.The solution draws out data points from the applicants medical records and exam results that will be key to the underwriters evaluation.Designed by Accentures data scientists and experts from the insurance industry,t

276、he algorithm creates a simple visualisation of the AIs preliminary assessment.3The solution aims to improve customer experiences through streamlining processes and increased AI-human collaboration.By leveraging AI and other digital technologies,Daido is streamlining underwriting processes,minimising

277、 redundant tasks,and freeing up human advisors for higher-level tasks.Artivatic.AI launches a smart underwiring platformArtivatic.AI launches a smart underwiring platformIn 2021,Insurance technology startup Artivatic.AI launched AUSIS,a smart underwriting platform for better risk and fraud analysis.

278、AUSIS is a smart,AI-based underwriting platform with personalised pricing,risk,and decisions too.It helps to process and digitise medical records,KYC,and application forms to verify,and build personalised profiles in combination with historical data and business rules of the product.This platform en

279、ables in-depth individual health-risk analysis and suggests the underwriting decision in less than 60 seconds.612345678910Trend1 AXA launches new AI-powered financial health tool.Insurance Asia.https:/ Health insurance start-up Plum launches AI-powered tool PolicyGPT.Business Standard.https:/www.bus

280、iness- Japans Daido Life Insurance Company has been granted a patent for an AI-based medical underwriting solution co-developed with Accenture.Accenture Newsroom.https:/newsroom.accenture.sg/asia-pacific/news/daido-life-insurance-company-granted-patent-for-ai-based-medical-underwriting-solution-deve

281、loped-with-accenture.htm|4 Artivatic launches smart AI underwriting platform named AUSIS to provide faster life and health insurance.Financial Express.https:/ DNA-The Future of finance and paymentsLonger term,automated claims will become increasingly hyper-personalised as the rise of smart and conne

282、cted environments allows claims to be triggered and verified in real time against the precise risks that the insurance policy covers.For example,insurance companies such as Yokahu and Bounce are now using live satellite or GeoNet data to identify customers who have experienced a hurricane or an eart

283、hquake and automate pay outs accordingly.For example,Yokahu offers home insurance policies that pay out automatically if your home is hit by a hurricane at a specific speed(with the amount pre-set to a certain range of wind speed in miles per hour).1Meanwhile,Canada-based Bounce is an insurance star

284、t-up who announced in 2021 a partnership with Lloyds 2 to offer affordable earthquake insurance and fast claims payments.Bounce uses GeoNet data to identify which consumers have experienced a strong earthquake.Once the seismic trigger has been reached,the claim is paid within days to help customers

285、with immediate cash flow issues.Payments are determined by the strength of the quake,with stronger earthquakes generating higher pay outs.As concerns about the impact of specific climate related events such as floods or wildfires continue to grow,such services will increasingly appeal to consumers w

286、ho will come to expect that financial and insurance brands will use the latest advances in AI to provide solutions that can respond to potential environmental risks in real-time.AI-Powered InsuranceExpected Trend Trajectory in the 2020sTrend IntensityNowNextFuture(2023)Cost-of-living concerns will d

287、rive some to increase their use of digital payments to reap the benefits of integrated money management.tools,while others will return to cash as a more tangible way to budget.(2024-2025)Continued bank branch and ATM closures will make digital payments the default.E-wallets will bypass traditional b

288、anks,and cryptocurrencies will become a more widely accepted payment method.(2025-30)Everyday payments will be feasible with a wide range of methods and currencies,including biometrics,crypto and personal data.But calls for inclusivity and mounting privacy concerns will slow some uptake.12345678910T

289、rend1 Yokahu.https:/yokahu.co/|2 Lloyds launches pioneering parametric earthquake insurance policy in New Zealand.Intelligent Insurer.https:/ DNA-The Future of finance and paymentsTrend 10:Branches ReinventedWith more of lifes activities moving online,financial service providers will continue to evo

290、lvethe digital and offline customer experience tobetter serve consumers.More banks will close low-traffic retail outlets to streamline their network ofbranches and will innovate to ensure that theironline systems and spaces are seamless,easy toaccess,and complimentary to offline services.Looking ahe

291、ad,financial services will expand intoemerging virtual worlds while also reimagining the role of the traditional bank branchutilising pop-up and multi-use spaces to provide customers witha range of benefits in addition to financialassistance.The pandemic accelerated the move towards online banking,p

292、ushing even those previously reluctant to embrace virtual services to try them out ofnecessity.Over the next decade,although contradictory trends may play out in certain segments of consumers in APAC,overall,we can expect heightened uptake of online banking to persist.Between 2017 and 2021,the share

293、 of consumers in emerging markets in APAC actively using digital banking increased sharply from 54%in 2017 to 88%in 2021.1Consumer behaviour across APAC strongly favours mobile and online banking.Approximately 97%of consumers either consider the digital channel the best of several ways to interact w

294、ith their bank or use it as one of several channels in a multichannel or omnichannel offering.2By contrast,2%of consumers in developed and 3%in emerging APAC markets continue to conduct most of their bank business at the branch.346Finance DNA-The Future of finance and payments9 in 10 consumersacross

295、 the AsiaPacific region use digital banking actively.Most are open to purchasing more banking services through digital channels.41,2,3 Emerging markets leap forward in digital banking innovation and adoption.Mckinsey.https:/ Online Banking Foresight Factory Base:799-4869 online respondents per count

296、ry aged 16+Brazil,China,India,Malaysia,Mexico,Russia,Singapore,South Korea,Thailand 16-74,UAE,Vietnam 16-64,Indonesia 16-54,2022 March Foresight Factory|Base:12884 online respondents aged 16+,APAC Average(10 markets),2022 March 12345678910TrendBy 2022,67%of APAC consumers were using online banking s

297、ervices at least weekly.477%of 25-34s currently use the internet for banking purposes on a weekly basis.5As online banking evolves,it will empower personnel to focus on more involved inquiries and tailor-made advisory services.The branch will primarily fulfil the consumer need for human service(as d

298、iscussed in Humanised Banking),personalisation,and community.Increasingly,front-facing financial service employees will provide customers with exceptional,empathetic customer service that cannot be provided online,like offering complex financial advice or advisory services.Meanwhile,banks and other

299、financial service providers will increasingly explore the use of offline spaces,from retail outlets to lifestyle spaces,as a base to connect with their customers and communities.This means that,in the 2020s,the branch network will no longer be confined to traditional retail banks.New branches will p

300、op up in community spaces where face-to-face contact is most needed.As pop-up branches become the norm in the medium-to long-term,more banks will also explore partnerships with brands in other sectors to offer complementary,in-person services.For some players,partnerships will help enhance the in-br

301、anch offer for customers and allowing banks to be progressively seen less as financial support and more as lifestyle partners.For instance,IKEA1acquired a 49%stake in Ikano Bank 1,with the aim of offering a full suite of banking services in IKEA stores and online.This will enhance convenience by pro

302、viding a one-stop,multifunctional shop for financial and retail services.Longer term,flagship bank branches will emerge alongside virtual branches in the metaverse.Already,46%of global consumers express interest in a 3D digital world where they could engage in various virtual activities such as shop

303、ping,by using an avatarrising to 59%and 57%among Gen Z and Millennials respectively 2.In this way,the metaverse represents an appealing avenue to engage young customers who want more immersive online experiences.As the ownership of virtual assets becomes more mainstream,there will also be an increas

304、ing need for practical financial services in the metaverse,such as banking facilities to manage virtual and cryptocurrencies,or insurance for exclusive digital goods like NFTs.Accordingly,to offer real world services that are critical to the metaverse world,New York-based accounting firm Prager Meti

305、s became 3the first certified public accountant to have an in-game branch,by opening an outlet on the virtual world platform Decentraland.Meanwhile,HSBC acquired virtual real estate in The Sandbox metaverse.4which will be developed as a space to connect with sports,esports,and gaming enthusiasts.Fit

306、tingly,the bank has also launched a fund that offers investment opportunities in the Metaverse for its private banking clients in Hong Kong and Singapore.The discretionary portfolio is designed for its high-net-worth(HNW)and ultra-HNW investors and accredited investor clients in Hong Kong and Singap

307、ore.5Finance DNA-The Future of finance and paymentsTrend in actionOCBC Bank has opened the doors to a different banking experience on the leading Metaverse platform,Decentraland.Named after the address of the banks headquarters on Chulia Street,Singapore,OCBCx65Chulia allows visitors to learn about

308、OCBCs historical milestones along with the latest banking products and services.They can open a bank account and apply for a credit card through instant access to the banks website from the Metaverse platform.61 IKEA buys 49%stake in financial services partner Ikano Bank.Fintech Futures.https:/ Fore

309、sight Factory|Base:37707 online respondents aged 16+,Global Average(27 markets),2022 March|3 Prager Metis.https:/ HSBC Buys Virtual Real Estate in Sandbox Metaverse.Blockworks.https:/blockworks.co/news/hsbc-buys-virtual-real-estate-in-sandbox-metaverse|5 HSBC launches metaverse portfolio for affluen

310、t Asian clients.Private Banker International.https:/ OCBC Bank launches OCBCx65Chulia in Decentraland to redefine access to banking.OCBC.https:/ But going digital doesnt mean the end of offline branches6 in 10consumersturn to branches to solve specific and complicated problems.148Consumers still val

311、ue the branchAn Accenture survey found that consumers across all generations and nearly all geographies still value physical bank branches in their neighbourhoods.This is a clear evidence of consumer desire to have a personal interaction with their banks.In addition,more than six in 10 consumers tur

312、n to physical branches to solve specific and complicated problems.With the economic impact of rising cost of living,pain points are set to become more acute.To navigate those challenges,consumers will prefer having genuine conversations with their banks,something that digital channels cant offer.In

313、Australia,around 63%of consumers like seeing branches in their neighbourhood,and 68%turn to the branch mainly to solve specific and complicated problems.In India,around 70%of consumers like seeing branches in their neighbourhood and 78%turn to the branch mainly to solve specific and complicated prob

314、lems.21,2 Banking Consumer Study:Reignite human connections.Accenture.https:/ HDFC Bank to open more than 675 branches in semi-urban,rural areas in fiscal year 2024.Reuters.https:/ Axis Bank and PayNearby partner to launch Savings and Current Bank accounts for last mile SMEs and customers at a nearb

315、y store.PayNearby.https:/paynearby.in/media/axis-bank-and-paynearby-partner-to-launch-savings-and-current-bank-accounts-for-last-mile-smes-and-customers-at-a-nearby-store/Amid digital boom,banks still branch out to drive growth in IndiaHDFC Bank 3plans to open 600 branches in semi-urban and rural ar

316、eas over 2024,with additional expansion in urban areas.Indias Axis Bank partnered with PayNearby4to simplify savings and current account openings for retailers and customers.This collaboration aims to reach remote areas in India and address issues such as documentation hassles,lengthy processes,tech

317、nology fear,lack of proximity,and formal environment discomfort.Branches ReinventedExpected Trend Trajectory in the 2020sTrend IntensityNow(2023)Expect heightened uptake of online banking to persist.Banks will continue to close branches and explore remote alternatives,but there will be a need for th

318、em to continue to offer in-person advice and support.Next(2024-2025)Advancing technology will help tackle pain points of online banking.Branches will emerge in local community spaces to offer face-to-face support,and in lifestyle spaces to offer more experiential banking.Future(2025-30)Branches will

319、 become destination spaces as banks attempt to become lifestyle partners.More widespread adoption of VR will help deliver realistic and advanced financial services in digital and metaverse spaces.Southeast Asia:Goodbye to the bank branchThe accelerated shift to digital banking in Southeast Asia is e

320、xpected to be accompanied by the closure of close to a fifth of the regions physical branches by 2030.Banking services including money transfers,payments,loan applications and dissipating financial advice can now be accessed online eliminating local branch visits.As per a 2021 Roland Berger report,S

321、outheast Asia will see 11,000 branch closures leading up to 2030 around 18%of the current physical banking presence.Researchers highlight that this shift is largely driven by a young,digitally inclusive population across the region.At the current pace,an added 111 million digital natives now between

322、 the ages of 8 and 17 will enter the bankable population by 2030.1Comfortable with tech and served by a whole host of new digital banking tools,ranks of young consumers will likely drive many of the regions physical branches into obscurity bringing Southeast Asia up to speed with the global banking

323、landscape.As banks continue their digital transformation journeys,reducing costs and improving customer experiences should be top priorities.How each bank approaches its specific journey will depend on certain factors.Some banks might downsize or differentiate their branches to meet the evolving cus

324、tomer demand across their network.HSBC,for instance,has reduced its branch network by 60%during the last 20 years and has decided to repurpose its remaining branches into four formats:full service,cash service,digital service and pop-up branches.2To expand their service offerings,banks are also form

325、ing strategic partnerships with fintech firms,technology companies,and other industry players.491 11,000 bank branches in Southeast Asia to shut over next decade.Consultancy Asia.https:/www.consultancy.asia/news/4193/11000-bank-branches-in-southeast-asia-to-shut-over-next-decade|2 Revisiting the fut

326、ure of the bank branch.FutureCIO.https:/futurecio.tech/revisiting-the-future-of-the-bank-branch/|3,6,7 Major APAC banks could embrace fintechs in emerging Asia for next wave of growth.SP Global.https:/ APAC banks leveraging fintech innovation more than other global markets,Finastra research reveals.

327、Hubbis.https:/ Hana Financial partners with Line to launch digital bank in Indonesia.The Korea Economic Daily.https:/ 12345678910TrendFinance DNA-The Future of finance and paymentsProsperous partnerships:fintech collabsLarge lenders in APAC have actively opted for fintech collaborations and are inve

328、sting in these startups to scale up digital capabilities.Finastra research finds that fintech partnerships are a critical part of APAC banks strategies,with 87%planning to connect with an average of four fintechs in the next 12-18 months,and just 12%planning to build their own solutions in-house.4In

329、 2021 Hana Financial Group Inc.jointly launched a digital bank in Indonesia with LINE Corp.,a messaging platform5.Kasikornbank PCL plans to build digital banking platforms in its growth markets through joint investments with local partners.In 2021,major APAC banks took part in 53 fintech equity roun

330、ds,up 26%and 20%from 2020 and 2019 levels,respectively.Banks have also shown an inclination to pursue fintech investments in key growth markets,including offshore markets.6APAC banks grew participation in investment tech and payment companies in 20217Number of transactions605040302010020172018201920

331、202021Technology platformsFinancial media anddata solutionsInsurance technologyInvestment and capitalmarkets technologyDigital lendingBanking technologyPaymentsEmerging AsiaU.S.IsraelU.K.SingaporeCanadaAPAC banks offshore fintech investments are concentrated in emerging Asia3Geographical breakdown o

332、f offshore fintechs(%)Finance DNA:Understanding YourCustomer Now and In the FutureFinance DNA-The Future of finance and paymentsThe trends outlined in this Finance DNA report,while impacted to a lesser or greater extent by current economic conditions,are expected to remain the key features of the gl

333、obal finance and payments landscape.While their pace of change,trajectory and forms of manifestation may alter due to the changing economic context,the trends explored in this report are the core areas of changing consumer demand,attitudes and expectations that brands will need to be aware of and action against over the short,medium and longer term.Here is what brands can do to stay ahead of the c