3 trends shaping the future of Singapore’s fintech
Huawei is paving the way for this vision. It recently launched new fintech tools that will make rolling out mobile payments easier. The tech giant is also providing tech support for microfinance and super apps.
These tools were announced at the recent Huawei Connect 2021, along with ten other digital innovations for the energy, transport, manufacturing, and public sectors. Here are three ways the tech could transform Singapore’s and the region’s fintech scene.
1. Mobile payments
China has long been the world’s leader in mobile payments. In March 2020, more than 776 million people sent off funds with a tap or swipe on their phones, reported Daxue Consulting.
China surpasses the next countries on the list by leaps and bounds. Nearly 80 percent of its citizens use mobile payments. South Korea comes in second at 32.8 percent, and India at 29.6 percent, according to numbers from the People’s Bank of China.
Huawei is working to help other nations close the gap. Its new mobile payments tool has helped Myanmar’s largest local bank build a digital wallet hosted on the cloud. In just two and a half years, the wallet welcomed more than 8 million users.
2. Connecting users and funders
The new fintech tools will recommend users to banks with the right services for their needs. Banks can even set up apps to connect users and merchants, which will help banks reach customers faster and at a lower cost. These can be super apps or more tailored ones for smaller merchants.
Huawei’s new tools will also allow banks to provide more services, including microfinance. For instance, the company worked with banks and telcos in Kenya to provide micro and small loans to individuals and small businesses. This has helped to increase financial inclusion in the country from 23 percent to 85 percent.
3. Digital to the core
Improving digital banking services is the first of two steps to ramping up fintech, Huawei believes. The second phase is to rehaul banks’ existing IT systems with the cloud. Its Digital Core can help bring middle and back-end services onto the cloud to enable even more digital services.
This is crucial as banks rethink how to serve their customers, said Cao Chong, President of the Global Financial Services Business Department, Enterprise BG, Huawei. All other aspects of life have moved online, and financial services need to keep up.
“Financial services need to expand from the traditional services to more comprehensive services, to give the consumers a brand new experience,” Cao shared.
Huawei worked closely with DBS Bank and received the Most Valued Technology Partner of the Year 2020 by DBS, in recognition of its strong support and capabilities.
Huawei’s fintech tools have helped more than 20 countries and 300 million users across the Asia Pacific, South Africa, and North Africa. It will continue to partner industry and expand its support for banks to go digital.