Emirates NBD will be able to focus on its core markets by leveraging LiquidX’s platform, Emirates NBD being a leading bank in the MENA region. The partnership will enable LiquidX to expand its presence into the Middle East to boost trade connectivity between Asia and the Middle East. 

The LiquidX network comprises corporations, banks and non-bank financial institutions. It is the largest  electronic marketplace for the exchange of trade finance assets. 

Last year, Emirates NBD successfully completed an accounts receivables transaction for one of its clients on the LiquidX network. It was the bank’s first transaction on the platform. It is reported that the transaction was between a major crude oil producer from the Middle East and a Singaporean global commodity trader. 

Jim Toffey, CEO of LiquidX, told the media that, “Emirates NBD is a market leader in digital trade finance and share our commitment to transforming the industry. We aim to be the fintech partner of choice for global banks and this partnership with Emirates NBD is a great example of how we can work with banks to expand their digital working capital solutions.”

Last December, LiquidX launched its Supply Chain Finance (SCF) programme demonstrating the company’s onboarding and execution capabilities globally. 

The post Emirates NBD leverages LiquidX platform to focus on core markets appeared first on International Finance.

The bank has won the International Finance Award for Best New Mobile Banking Application – MJ Saduak – Laos 2019.

The bank has introduced its new retail mobile banking app MJ Saduak which supports  QR payments and provides access to ewallets for better banking services. In an interview with International Finance, CEO Anthony Chin discusses the current developments in Laos’ banking landscape, the role of Maruhan Japan Bank in the country and its plans for the next two to three years. 

How does the Laos banking landscape look like? Could you please tell us more about  Maruhan Japan Bank’s performance?

Laos is an emerging economy and is increasingly a prime market for banking opportunities in the Asean region. If you closely look at Laos’ banking landscape, there are about 43 banks catering to a seven million population. So I would say it is kind of crowded.

Competition is quite stiff for such a small industry. Laos  is growing as an economy. By comparison, Laos’ GDP per capita is better than that of many countries in the Indo-China region. It has already surpassed $2,000 and that’s a lot higher than Myanmar in Cambodia which started developing a lot earlier. 

It is a good indication in terms of growth but I think there is rising demand across the banking landscape. I think we haven’t reached an inflection point but I can kind of sense it. I’m from Malaysia and I have been in Laos for six months. Now the airport has at least eight cafes with a beer bar and an upcoming duty-free shopping zone which was lacking when I first arrived. 

I am quite excited about March 2020 because we are a Japanese bank and  there is going to be a direct flight to the south of Japan. As the Laos economy grows there will be more activities and travellers in the country, better productivity and rising demand for payments. With that, banks and non-banks will have a significant role to play.

The banks, microfinance companies and non-banks are trying to tap into the existing opportunities in the country with a seven million population. I think the market is going to get quite interesting. In the next two or three years, I think we will see a real demand for banking services. 

That said, I am the CEO of Maruhan Japan Bank, which is a fully owned Japanese bank. We have established sister banks in Cambodia and Myanmar and their operations are quite large. However, in Laos we are quite young. Maruhan Japan Bank is only a few years old and we have embarked on our three-year strategy. So it’s really important and humbling for us to win the International Finance Awards in a short duration. 

Why is it important for Maruhan Japan Bank to become digital? 

Maruhan Japan Bank’s three-year strategic transformation can be attributed to our goal to become an established bank. We don’t need to be the biggest but we want to be the best in our core segments. As part of our three-pronged strategy, we want to achieve the following three key targets: 

First, we want to be the most trustworthy bank in Laos. Being a Japanese bank, trust is our core principle. We don’t simply focus on  integrity, compliance and governance but are very keen to establish customer trust. It is important to deliver services on time. Therefore, we not only want to be the most trustworthy bank but also seek to deliver the best customer experience. Our focus is to ensure superior experience during customer engagement — and this can only be achieved if we use technology wisely. For that reason, digital remains at the forefront of all our operations. 

Digitisation is a necessity today. And if we don’t deploy technology in our banking operations and to serve customers — we will be overlooked soon enough. Today, customers across demographic groups seek instant gratification. 

If you take a close look at going digital, it is really about serving our customers and community at large.  In Laos, I think that is vital to what we do because it helps us create financial inclusion in provinces and regions that remain unbanked. 

Of the seven million people in Laos, only about one million hold bank accounts. So technology and mobile data enable us to serve the unbanked. I have truly believed in the saying ‘Banking is transactional but money is emotional’. Although we are dealing with money, there are emotions attached and that’s why customer experience is key. I think digital customer experience and being trustworthy come together. 

What are your plans for the bank moving forward?

We have big aspirations but it takes a lot of hard work to achieve them. We have already outlined our plans for the next one to three years in terms of what we want to build and deliver. This kind of growth must be sustainable and responsible. It should add value to the economy, community, shareholders and always be in line with the vision of central bank as well as regulators. 

We will ensure that we make improvements in a step by step process. We have gone live with our mobile app called MJ Saduak. Saduak in Laos means simple. The mobile app went live in November. It is simple to use, download and enables users to make payments on-the-go. The mobile app enables QR payments and has an ewallet that allows customers to go to any of merchants. 

Maruhan Japan Bank is swiftly expanding. We have also included a very simple chat bot to ensure customers can seamlessly contact the bank. The chat bot also includes a very simple financial management tool to help Laotians, consumers and customers learn about saving and investment. 

Besides financial inclusion, we also want to improve financial literacy in the country. We plan to automate operations in our branches and enable a lot of simple processes so that more and more people can be a part of the banking community. 

In the future, we aspire to work with partners who want to build an ecosystem. In turn, this will allow us to work with SMEs and businesses. We aim to establish a strong link between the bank, merchants, ecommerce players, businesses and regulators. 

In a nutshell, we want to help customers achieve their dream of purchasing a car or acquiring a loan. What customers really seek  is not a bank but services that can cater to their needs. That said, we are brainstorming on how to provide these services to customers in the two to three years. 

Every quarter our customers expect to see a new service from us and that’s our plan over the next three years. While I talk a lot about customers, the environment and the community, another key focus is to build a very cohesive team with a common vision. 

The bank has a very simple programme called cast which is in line with protecting the environment and spreading awareness. I promote a very open culture in the bank. 

What are the challenges you anticipate and how do you differentiate Maruhan Japan Bank from its competitors in the country? 

That’s a good question. It is quite hard to differentiate yourself in a highly competitive industry. For example, technology is a tool that has been deployed by everyone across industries today. It is as simple as buying a ten thousand dollar equipment and stating that “this is my latest technology to enable a new service” — and with that, your competitor will invest in a technology worth twenty thousand dollars. So the competitive advantage in this context is lacking. 

A good example is ATMs. Customers no longer visit bank branches to withdraw money — and likewise, there is not much left to differentiate banks if their logos are taken away. So it simply comes down to how banking staff implement services, the quality of customer experience and the level of trust established. 

We are working hard to build solid trust with our customers that will help to differentiate us from competitors. Today the banking industry is crowded and homogeneous. Currently, several foreign fintechs are launching ewallets in Laos stirring competition in the domestic banking and finance industry. 

I hope the bank will deliver premium services to customers, and stakeholders in the next two to three years. More importantly, we want Maruhan Japan Bank to become the most trusted bank in Laos. 

The post Maruhan Japan Bank seeks to become the most trusted bank in Laos appeared first on International Finance.

Under the new partnership, SCB will allow customers to open a non-passbook savings bank account at 7-Eleven’s Counter Service using facial recognition technology. The facial recognition technology will be used to verify the customers’ identification.

The new service is expected to bring aboard more than a million customers this year, the media reported. Also, SCB’s partnership with Counter Service will make the latter a leading banking agent in the country. 

It requires customers to insert their ID card in the Electronic Data Capture (EDC) device at the 7-Eleven stores to open an account. After that, they are expected to take a photo using facial recognition, enter their telephone number, enter an auto-generated PIN at EDC and confirm. 

The new service will enable the bank to drive other financial offerings such as  SCB Easy, credit & debit cards, Planet SCB cards, loans and investments. 

SCB President Mrs. Apiphan Charoenanusorn told the media that, “This Digital Financial Partnership with Counter Service will extend the success of the Banking Agent service launched last year. This collaborative effort will help enhance the capabilities of our two firms in offering new banking service formats for customers, starting with simple cash deposit and withdrawal via Counter Service.” 

Besides SCB, other banks in the country including Kasikornbank, Bangkok Bank, Bank of Ayudhya, TMB Bank and CIMB Thai Bank carry out electronic Know-Your-Customer (eKYC) with facial biometrics, the media reported. 

The post Siam Commercial Bank uses facial recognition to open accounts at 7-Eleven appeared first on International Finance.

The International Finance Banking Awards are presented by International Finance, a premium UK business and finance magazine. The award honours banks for their accomplishments in innovation, infrastructure development, and customer centricity.

OCB is one of the only three Vietnamese lenders to receive the award this year.  The second award it received is a milestone in OCB’s roadmap to achieve the goal of becoming the best digital and modern retail bank for small and medium-sized enterprises in the country by 2020

Established in 1996, OCB offers financial solutions and services to all customer segments. It is focused on expanding its network, improving competitiveness, and strengthening risk management. The bank has been investing in technology and digitising operations for many  years. 

Du Xuan Vu, the bank’s IT director, said, “OCB sees that the adoption of modern technology is an indispensable trend. As part of the development roadmap, the bank will continue to invest in digital technology to design more products and services.” 

OCB OMNI: Innovative digital banking solution

In 2017, OCB began to develop omni-channel which is a cross-channel content strategy that organisations use to improve user experience. One year later, it became the first omni-channel bank in Vietnam. 

The bank launched OCB OMNI platform, digital bank and OMNI PAY in April 2019 — and they have been developed on the most advanced omni-channel foundations in the world.  

OCB OMNI and OMNI PAY offer individuals and enterprises free, rapid, convenient and safe services. Using these platforms, customers can open a new account, get a loan, purchase insurance or invest without visiting the bank branch. 

The two omni-channel platforms also offer customers QR code services, free 24/7 money transfer service within eight seconds and swift payment of electricity, telephone, and internet bills. Customer can access http://go.ocb.com.vn or download the app from the Apple Store or GooglePlay Store to use the service. 

Sanjay Chakrabarty, deputy CEO and head of retail banking at OCB, said, “OCB was one of the first banks in Viet Nam to embark on the digital journey. We were very clear that our digital strategy had to be embedded in our core business. So we didn’t simply go around copying ideas from developed markets and implementing them. We put in a lot of effort to understand where we could harmonise our digital strategy with our ongoing business model, which includes a physical network.”

The launch of OCB OMNI and OMNI PAY is a remarkable achievement for OCB amid the boom in cashless payment in Vietnam. They are a testament to the relentless efforts invested by OCB to introduce better products and services to customers. 

Since the launch, the number of OCB customers using the service has been  increasing sharply. “Our customer service has got the highest ratings from end-users after we automated various process steps and reduced turnaround time for key services,” Chakrabarty said. “Some 90 percent of all new customers we acquire now have at least one online transaction in the first six months. 45 percent of our credit cards are being sold exclusively through digital channels. We have unsecured pre-approved loans that are delivered and fulfilled through digital channels. 

“We are now selling insurance as well as investments through our mobile app OCB OMNI. This has resulted in significant enhancement of customer experience.”

OCB has also tied up with many technology partners to build a robust and safe technology system. In June, OCB announced the successful deployment of the IBM Integrated Analytics System (IIAS). It is the first bank in Vietnam to have deployed IIAS. 

IIAS is a unified hybrid data-management analytics solution providing massive parallel processing. It comprises a high-performance hardware platform and optimised database query engine software that work together to support various data analysis and business-reporting capabilities.

In May, OCB reported that it is collaborating with Dell to run a solution called Software Defined Everything (SDN), which creates a modern, safe and flexible operating system.

Speaking of technology investment, Chakrabarty said: “We understand this is an ongoing journey. We have a company culture where we seek speed and simplicity in everything we do. 

“The key components that sustain this drive are, of course, embracing new technology, the orientation to automate as many manual processes as possible, using the data to understand customer needs at all times and presenting solutions rather than merely selling products, and, finally, empowering customers to make their own choices.”

OCB sees steady development in Vietnam banking

Besides technology, OCB has also focused on steady growth that is evident from its recent accomplishments.

Last year, it was one of the first banks in Vietnam to achieve Basel II norms. Basel II is the second edition of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on banking supervision. Basel II stipulates minimum capital requirements, supervisory review, and market discipline. It seeks to enhance competition and transparency in the banking system and make banks more resistant to market changes.

Moody’s Investors Service has upgraded OCB’s ratings to B1, a significant landmark in the bank’s efforts to improve its financial capacity and risk management. OCB is one of the six banks to buy back all of its bad debts from the Vietnam Asset Management Company.

The bank’s return on assets (ROA) has grown consistently and has always been among the top 10 banks in the country. It has nearly 120 transaction points in all major cities and economic hubs in the country.

OCB has underlined its leading position with more than 10,000 professional staff, a foundation based on modern technology and well-loved brands. For years, the bank has been growing at double the average rate of the industry.

The post OCB wins International Finance Award for digital banking appeared first on International Finance.

For a while now, technology goliaths have been trying to solve underlying technology problems centred around scale—as more people continue to buy and sell online. Understandably, major financial institutions have looked at the vast infrastructure underpinning the Facebook and Google and thought: “we can learn from this!” Unfortunately, it is not that simple.

With millions of users browsing the web every day, it is not a financial catastrophe if Facebook fails to load ‘more posts’. In contrast, a transaction failing could cost the financial market in millions. These days, with electronic market makers ruling the roost, real-time is now essential. of the essence. When traders’ click on buy, that is the exact price they want to execute at. A millisecond later that price could have moved in the wrong direction. Therefore, unlike the tech behemoths concerned with scaling up to meet customer demand, in financial markets the primary focus should be around consistently maintaining flawless accuracy in a short and predictable time period.

Unfortunately, until now, banks have been more focused on updating their trading platforms to handle volumes. With volumes on Deutsche Börse cash market up 20% compared to the same period last year, it is not hard to see why. But while it may make sense to look at Facebook and Google architectures for answers, the reality is that this is not the way to address the specific problems in facing trading. Take the numerous geopolitical events triggering mass sell-offs in equity markets of late. The only way to profit from these short bouts of volatility is to ensure every execution request is processed as quickly and efficiently as possible. This gets to the heart of why real-time is so important.

But here lies the problem: banks can’t hope to achieve 21st century real-time trading environment with 20th century technology architecture. Therein lies the problem. A bank may currently be looking to replace its two-decade old matching engine or order management system (OMS). It could well be working just fine, only for the head of desk to anticipate that the system will not have the sophistication to quickly process a higher throughput of transactions in the future.

Investment banking needs to find a way to manage resilience while operating in real-time, as opposed to focusing on scale. The truth is the sector can look to consumer tech brands to solve parts of the problem, with business agility being one of them. Ultimately, they need to rethink, adapt and go beyond issues of scale in order to solve specific institutional trading problems. Until this is realised, it won’t just be cultural differences that set Silicon Valley and Wall Street apart from each other.

The post Banks can navel-gaze at Silicon Valley—but won’t find answers to their tech problems appeared first on International Finance.

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