The second day of FinovateAsia Digital focused on a pair of themes – digital payments and futuretech – that are increasingly intertwined. Both offer solutions to the challenge of liberating consumers and communities from their “cash addiction” by combining industrial applications of the Internet of Things with the processes of the financial services industry. It is clear that the nexus of payments and advanced, enabling technologies is one of the key frontiers of fintech innovation today.
Below are a few insights and observations on these topics from our speakers on Day Two of our conference. And remember, to join our all-digital event – live or On Demand – visit our FinovateAsia Digital hub to register and begin enjoying all the content we have to offer.
On the persistence of cash, and the urgency to bring alternatives to communities that rely on cash
The newspapers are full of stories about how some communities are being left without ATMs, and people are finding it hard to access cash. You can see why that is because as the number of cash transactions falls, the cost of cash infrastructure – not just ATMs, but every shop with its tills and counting up cash and depositing it and vans full of cash driving around all over the place to fill up the ATMs, security guards – all of that infrastructure falls on fewer and fewer transactions, so the per transaction costs goes up.
So how to you protect people who need to work in cash? Well, (innovation in ATMs) seems to me to be an expensive way to do it. The alternative would be to find ways of moving them away from cash, not finding ever more expensive ways of allowing them to continue their cash habit. It’s the people who are trapped in a cash economy that face the highest transaction costs anyway.
–David Birch, Director of Innovation, Consult Hyperion
On the value of artificial intelligence to those business leaders who have implemented the technology
Thirty percent of the (business) leaders who have adopted and integrated artificial intelligence into their business models are very convinced that AI will deliver (on) their core strategic business decisions. So, in other words, 30% of those who have already deployed artificial intelligence believe that artificial intelligence must sit at the core of their deliverables in business strategy.
45% of these leaders invest three times more in this type of technology than the late adopters or the laggards. And 7% of the leaders record more revenues and savings than the late adopters of this technology. So as you can see, these numbers speak volumes. It’s also interesting to understand that these numbers compound over time. And the speed of compounding this growth and acceleration will be translated in a higher market share, better customer deliverables, and improved market reach in different jurisdictions. In other words: stronger business.
— Clara Durodié, Chief Executive, Cognitive Finance Group
On the enabling power of the Internet of Things and Industry 4.0 for payments and other financial services
Once we have the ability to connect devices and large industrial systems into financial services we suddenly have interesting opportunities, for example, in enabling real-time payments and machine-to-machine payments. So we are talking about creating a payment ecosystem and financing capabilities based on data streams and digital representations of physical assets in the industrial landscape.
This, of course, opens up a lot of questions. We need to think about, first and foremost, the trust model that has to be established. For example, when you create a digital representation of a physical asset, if we want to give that asset or a machine a payment capability where they are able to exchange value with other machines, we have to define a structure for a machine identity. You could almost argue that we need to establish a “Know Your Machine” process instead of a “Know Your Customer” process.
– Ville Sointu, Head of Emerging Technologies, Nordea Bank
Available both live (Singapore time) and On Demand during the conference week, FinovateAsia Digital is a unique opportunity for those interested in learning more about fintech in the Asia-Pacific region. Browse our all-digital presentations, interviews, and discussions; network with fellow attendees; and gain key insights into the trends driving fintech innovation in critical, emerging markets. Visit our FinovateAsia Digital Hub and register today.