The Executive Playbook: Steering Financial Services Through 2025

 

 

Delivered at the Singapore FinTech Festival, panellists explored key themes shaping financial services as we enter 2025, including managing risk, embracing innovation, and fostering global consumerism.

Key Highlights

1. Navigating a Transformative Landscape

Economic Environment:

  • Shifts in interest rates challenge profitability and prompt reinvention among financial institutions.
  • After a long period of low rates, institutions now face heightened capital and liquidity requirements.

Fintech Disruption:

  • Incumbent financial institutions now represent just 60% of the industry's value, down from 90% a decade ago.
  • Fintech competition has spurred innovation in payments, private credit, and customer service.

Tech-Driven Transformation:

  • The “tech arms race” drives efficiency, cost-cutting, and innovation.
  • AI offers opportunities for new client services, improved risk management, and accelerated growth.

2. Key Challenges Identified by Industry Leaders

Managing Risk and Complexity:

  • Heightened regulatory costs and fragmented internal silos increase operational and financial risk.
  • Clients are seeking streamlined, automated solutions to address these challenges.

Modernisation and Digitalisation:

  • Competitive pressures and technological advancements push institutions to adopt innovative solutions.
  • Technological leadership is essential to remain relevant.

Balancing Public and Private Markets:

  • Ensuring robust and accessible public markets is crucial for wealth creation and economic growth.
  • Regulatory cooperation across regions is necessary to maintain market vibrancy.

3. Regional Opportunities in Asia Pacific

Rising Consumerism:

  • ASEAN and India are leading a middle-class expansion, fuelling formalisation and economic growth.
  • Adoption of digital technology and real-time payments creates significant opportunities.

Digital Applications and Tools:

  • Real-time payments and digital platforms are gaining traction, enhancing accessibility and efficiency.
  • ASEAN’s dynamic economies present fertile ground for innovation and investment.

 

4. Vision for the Future

Institutional Adaptation:

  • Financial institutions must streamline processes, manage complexity, and integrate advanced technologies to thrive.
  • Collaboration between incumbents and fintechs is essential for addressing rising customer expectations.

Harnessing AI for Growth:

  • AI-driven solutions provide new client offerings, efficient risk management, and growth potential.
  • Emphasis on leveraging AI responsibly to maintain consumer trust.

Public-Private Synergy:

  • Vibrant public markets remain central to global economic resilience.
  • Enhanced collaboration with regulators can create a harmonised global financial ecosystem.

 

Conclusion

The financial services industry stands at the nexus of innovation and reinvention as it enters 2025. With a focus on managing complexity, fostering collaboration, and leveraging technology, financial institutions are well-positioned to drive economic growth, create value for clients, and build a more inclusive global economy.

 

Watch Full Session

 

 

Speakers:

  • Ari Sarker, President, Asia Pacific, Mastercard
  • Melissa Guzy, Co-founder & Managing Partner, Arbor Ventures
  • Tal Cohen, President, Nasdaq
  • Yang Peng, Chief Executive Officer, Ant International

Moderator:

  • Nick Studer, President & Chief Executive Officer, Oliver Wyman
 
 

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