Published on June 2, 2024, 10:08 pm

Despite early apprehensions about an economic recovery in 2024, we continue to see investments in digital transformation initiatives within the financial services sector in Asia. We also continue to see digital services rising on the back of understanding and adopting technologies like analytics, cloud, and mobility. A targeted outcome, though, continues to be around efficiencies, convenience, and accessibility.

However, some innovations, like artificial intelligence and digitalization in general, bring new risks in areas like cybersecurity, operational resilience, and ethics.

In this podcast for FutureCIO, Joseph Lo, head of enterprise platforms at Broadridge, shares his views on what he sees as vital financial services transformation trends in Asia in 2024 and perhaps beyond.

State of the financial services industry in Asia

The Asian Business Review reported that in 2024, companies will increasingly embed financial (EmFi) services in their core value propositions. It projected APAC as the most promising EmFi region globally, with a total revenue potential of 305 billion USD by 2025.

Along with Lo’s observation that the financial services industry and financial technology are booming in the Asia Pacific (APAC) region. He also observes an enthusiasm for using AI for data analysis, visualization and personalization of customer service.

“We’re seeing that the firms doing this right are centralizing their AI capabilities around centers of excellence with experts that can scale based on the clients’ ambitions. It allows guardrails on multiple dimensions to handle information and risks related to compliance or protecting customers’ privacy,” explained Lo.

Addressing rising risks

As the financial sector evolves with technology so do the risks. In addressing the rising risks associated with using new technologies, particularly generative AI- people are concerned about “information that sounds right but is wrong”, privacy issues or how data may be used inadvertently.

Pushing innovation boundaries

With a highly regulated financial services industry- leaders take an interesting approach by focusing more on practical applications than introducing AI-powered innovations in heavily regulated areas like investment advice or detailed financial analysis.

Lo concurred that the financial services sector could use emerging technologies like AI to optimize operations such as customer interactions or internal processes streamlining with focus on safety integration considering modernization for real-time data availability among other factors.

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