A «culture of innovation» is essential to enable the resilience, recovery, and digitalization that organizations need today and for the future, said Microsoft's business lead for financial services in Asia.
«Digital transformation is a journey, and it is paying dividends for those who've already started,» Microsoft's Connie Leung told finews.asia in an interview.
«The financial services industry (FSI) has traditionally held a strong risk-averse mindset, but one of the biggest changes we have seen within the industry is a mindset shift toward an openness to change and greater agility,» Leung said.
Leung said Microsoft has seen increased demand from FSI customers for computing power to run high volumes of risk modeling and accelerate the provision of streamlined and personalized digital services to customers. Among its FSI customers in the region are National Australia Bank, Standard Chartered, and Westpac.
Pandemic-Prompted Change
According to a recent study of organizations across 15 Asia Pacific countries, conducted by Microsoft and IDC, Asia Pacific’s FSI organizations matured in their culture of innovation by 12 percent, and attitudes toward innovation have also improved since Covid-19, with 52 percent of FSI organizations agreeing that innovation is easier. This figure rose to 61 percent for FSI Leaders, who have the most mature culture of innovation.
The study also noted that 66 percent of FSI organizations are accelerating the pace of digitization in response to the crisis, and FSI leaders with the most mature culture of innovation expect their revenues derived from digital business models to rise to 57 percent within three years.
More Changes Afoot
Going forward, Leung said FSI organizations will need to adapt in three main areas: using technology as a partner instead of a tool; catering to increased consumer adoption for digital finance options by providing more personalized options; and better integration of across owned, external, and unstructured data with technology, so insights can be looped back into the organization to provide new offerings for customers.
She highlighted that while firms in this sector continue to invest in technology to drive transformation, this will need to be bolstered by enhancing people’s capabilities to amplify value created through collaborating with third parties and having the right skillsets and mindset to adapt to change and sustain transformation.
«FSI organizations have realized successful digital transformation goes beyond technology. It is about cultural transformation: change and having an environment that supports this mindset shift,» she said.
Opportunities for Growth
Leung said she expects to see a move toward a super-app for financial services, where customers can access multiple touchpoints across branches, call center and mobile app services, for ease of access.
«With customers already embracing digital channels, FSI organizations need to be prepared that this will be the new normal and that we will not revert to a pre-covid model of engagement with customers,» Leung said.
«This will be both a challenge and an opportunity for FSI organizations – those who are able to embrace technology, integrate, and deliver an intelligent digital process, will be able to derive a 360-degree view of their customers and glean insights that allow them to create value and their business to thrive,» she added.
