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3SINGAPOREBANKING&FINANCIALSERVICESDIRECTORY2023/2024Welcome
rabbit!to2023TheyearoftherabbitThisyearmarksthethirdanniversaryofthepandemicItseemslikeonlyyesterdayweweregrapplingwiththesuddenswitchtolockdownmodeWork-from-homewasafreshconceptformanybusinessesthen;todayyouwillbehard-pressedtofindacompanythatdoesnotoperateonahybridworkmodelCOVIDsimpactonsocietiescannotbeoverstatedFuturehistorybookswillchroniclehowdisruptionsinsupplychainsandsocialdistancingrulesupendedmanywalk-inbusinesses;howformanymonthstravelcametoastandstillwithairportsoncethrongedwithtravellersturnedintodesertedbuildingsThesamebookswillalsotellhowourcivilisationlikeinmanypainfulperiodsthroughoutthecenturiesfounditswaytoadaptinthefaceofadversityE-commerceplatformssawasurgeinnewusersasmillionswhowerestuckathometooktobuyingtheiressentialneedsonlineTraditionalbusinesses—suchasluxurygoodsandairlines–alsohadtopivottodigitalmodelstogeneraterevenueorsinkDigitalpaymentsbecamethemodusoperandiSevenin10SingaporeanssaidthattheyincreasedtheiruseofdigitalpaymentsduringthepandemicaccordingtotheUOBASEANConsumerSentimentStudyUsageofphysicalcreditanddebitcardsinthecountryalso jumpedby58%Weseethisseachangehappeningacrossallgenerations–frombabyboomerstoGenZsCashpaymentsaredwindlingandeventheexchangeofredpacketsduringChineseNewYearistakingplacethroughapps(thoughofcourseitdoesntquitereplicatetheexperienceofhavingfreshandcrispnotesinhand)IndeedCOVIDhasprovidedtheimpetustosuperchargetheadoptionoffintechSignificantuptakeindigitalpaymentmethodssuchasmobilewalletsandReal-TimePaymentshaveenabledmerchantstoreceivefundsfastthusincreasingliquidityandallowingthemtoexpandtheirbusinessesfurtheracrosstheregionWiththerecentsigningoftheMOUbetweenfivecentralbanksinASEANwecanexpectcross-bordertransactionstobemoreseamlessinthefutureGrowingintandemwiththeballooningdigitaleconomyarethedigitalbanksThesefully-digitalbankscomepackedwithlowfeesandfastprocessingtimes–astrongpullfactorfortheincreasingnumberofGenZdigitalnativeswhoareenteringtheworkforceForgetplasticcardseventhefutureofbankingmighttakeplaceentirelyonanappCentralBankDigitalCurrencies(CBDC)wouldbeanotherinterestingfintechinnovationtokeepwatchthisyearThecollapseoftheFTXexchangeandtheLUNAcoinsenthugeripplesacrossthecryptocurrencyspacein2022andcastdoubtontheconceptofdecentralisedmoneybutitsimportanttokeepanobjectiveperspectiveandseparatethewheatfromthechaffBadactorsshouldnotdictatethefutureWiththeassiduousoversightandregulationsthatCBDCsbringtothetableinternationaltradecouldbemoreefficientthaneverandhelpboosteconomicgrowthAsmorepeopleshopandconducttheirbankingonlinewemustalsobewaryofthegrowingsophisticationoffraudandphishingscamsLastyearsslewofbank-relatedscamsintheregionhavedemonstratedhowevenyoungdigitallysavvyconsumerscanfallpreytofraudulenttransactionsandalsodemonstratedhowconnivingcybercriminalscanexploitloopholesinthesecurityframeworksInlightofthisthereisgreaterurgencyforfinancialinstitutionstoshoreuptheirdefencesagainstfurtherattacksandeducatetheirconsumersaboutsafeguardingthemselvesWemaynotbeabletoeliminateeverythreatbutthroughaholisticapproachwecanbebetterpreparedtoidentifyandcounterthemAccordingtoChineseculturetheyearoftherabbitsignifiesayearofhopeButitisdifficulttosquarethatwithtodaysrealitywehaveyettoseeanysignsofanendtofedinterestratehikesanendtoRussiasinvasionofUkrainenoranendtosluggishstockmarketperformancesConsumerstodayaremoreconservative–theyseeksaferhavenssuchasfixeddepositaccounts to grow their wealth For high-networthindividualsmorearechoosingtoparktheirmoneyinfamilyofficessituatedinstableeconomieslikeSingaporeButtherearebrightspotsamidthegloomChinasreopeningtotheworldandtheresurgenceofindustriesaffectedbythepandemicsuchastravelwilldeliveramuch-neededboosttointernationaltradeFinancialplayersandfintechcompaniesshouldcontinuetofindwaystoinnovateandexpandtheirproductstotakeadvantageoftheseboomingopportunitiesandstayaheadofthecurveShadab TaiyabiPresidentSingaporeFintech Association(SFA)FOREWORDbyPresidentSingaporeFintechAssociation(SFA)
