LEADERSHIP

38 entire business of the traditional banks hasn ’ t really played out that way ,” he explains . “ We ’ re starting to see fintech players cooperate with banks to provide various products and services .” For example , some larger Chinese fintechs are able to work with rural banks in China to help develop end-to-end core banking services which the banks may not have been able to do on their own .

A key issue thrown up by the rise of technology in finance is prioritising security or convenience , with the latter

Zennon Kapron Director , Kapronasia vying increasingly for first place . “ In general , consumers make a choice when they use any of these new platforms like Alipay and Grab – there ’ s a certain amount of data individuals are giving up ,” says Kapron , noting that this is also a unique aspect of the Asian market . “ People are willing to make that choice about privacy and security and to share some of the data for better financial return or a better experience . In China for example , millennials are more willing to give up data – however , in certain places , especially for the financially excluded , this might be the first time they ’ re interacting with a digital platform or even with a financial institution — developing trust is really critical .”

For the market segments that fintech is best placed to serve , Asia is rife with opportunity as well as challenge . “ Across the region , there is a strong portion of unbanked and underbanked individuals , in places like Indonesia and the Philippines .” Geographical issues mean it ’ s often not cost effective for larger banks to serve a region , so

JUNE 2019