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Digital Transformation in Banking Sector

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Dr. IN Channy, President & Group Managing Director of ACLEDA Bank Plc., has been committing most of his career life in banking and finance; and is one of the strongest believers and advocators in inclusive finance. He highlights that financial inclusion has sustainably open access to finance for all segment of the community. However, increasing demand to have greater access to finance inspires banks to expand their investment in digital infrastructure, including FinTech products to ensure that greater financial accesses can be made anywhere and anytime. Both current and new customers, in short the public at large, can do banking transactions 24/7 with ease.

He continues that the demand for banking anytime anywhere requires innovative, robust, secure, optimized and ready to meet the expectations of empowered and tech-savvy customers.

New FinTech entrants can optimize a single link of the financial services value chain to provide a bank-beating solution that can connect to the rest of the financial ecosystem. It can deliver the services directly to users’ mobile devices instead of using bank branches and offices.

“A digital transformation is occurring in the financial services industry with a host of non-bank innovators offering both customer facing and back office financial technology products and services. This transformation includes emerging market economies, and in many places offers a viable digital alternative to traditional banks, which have left significant population under banked. This note explores the challenges and opportunities that financial technology innovations present for banks in these nations. The Digital Transformation is beyond just moving from traditional banking to a digital world. It is a major change in how banks and other financial institutions learn about interaction with and satisfy customers. An efficacious Digital Transformation starts with an understanding of digital customer behavior, preferences, choices, likes, dislikes, stated as well as unstated needs, aspirations etc. And this transformation leads to the major changes in the organizations, from product-centric to customer-centric view”, Dr. IN Channy said.

The users rapidly get accustom in making purchases with a touch of their finger wherever they may be, receiving tailored recommendations, choosing customized products, and enjoying delivery of almost any item directly to their front door. The consumers’ new expectations apply to financial services too. The technology has transformed business-to-business and within-business interactions, enabling reconfiguration of design, production, marketing, delivery, and service functions through distributed supply chains, freelance design, outsourced manufacturing, and contract warehousing and delivery. These reconfigurations are mediated by online marketplaces and distributors, and assisted by back-end support operations and data analysis that together drive better risk assessment, faster fulfillment and more efficient customer service. The same types of disruptive market innovations and reconstituted value chains are now emerging in the financial services industry. Incumbents, too, can benefit from these developments, which will enable them to broaden financial access, introduce new products and services, and serve customers more efficiently by deploying new technologies internally or in partnership with external innovators.

He emphasizes that Digital Transformations of other industries provide customers with more trust and comfort with tech-based financial solutions. It also rose their demand for immediacy and customized products and services. Some of the most prominent FinTech companies are meeting these consumer demands with low cost, convenient ways to transfer money and borrow. The impact of FinTech on financial services, however, goes beyond retail and customer-facing applications and services to include all elements of the financial services production process. The transformations in other industries pointed out how increased availability of data and speed of information transmission would address key issues in contracting and monitoring that had determined the structures of firms and the degree of internalization of activities.

In conclusion “We have now established a clear roadmap for our digital journey focusing on customer’s experiences, convenience, accessibilities, and stay more responsive to customer needs, while also supporting efforts to diversify revenues, enhance efficiency, better manage operational risk and ultimately deliver on targeted growth in line with our new strategy. We are excited about these plans and confident that the changes underway will create significant value for our customers, employees and shareholders and ensure that ACLEDA Bank Plc. remains at the forefront of banking both in the Kingdom of Cambodia and in the region. As our teams continue their work, we will also be communicating our progress including the launch of new digital solutions and features as they become available to our existing and new customers.” With digital bank infrastructure and FinTech products, the public at large and our customers can access to their accounts at ACLEDA Bank. They can perform banking transactions from anywhere at any time they wish with our convenience and secured mobile banking App, called ACLEDA Unity ToanChet.

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