UNDERSTANDING FACEBOOK’S QUEST TO TRANSFORM MALAYSIAN SMES

James Sivalingam | 22 August, 2019

As of May this year, the country’s central bank, Bank Negara Malaysia has issued licenses to 42 e-wallet operators, highlighting the market potential for the service, as well as the competition within the space.

Thus, it is critical for payment platforms in the country to differentiate themselves and carve out a niche for themselves. MyPay, one of the e-wallet companies, is doing exactly this — distinguish themselves from the rest of the pack.

“Our unique selling proposition is that we present the information first, before giving you the payment options,” CEO of MyPay Nick Liew told Tech Wire Asia at their recent launch.

Most of the payment platforms, banking websites, and mobile apps allow consumers to make payments but do not show them the amount owed, especially when it comes to utility bills, government fees, taxes, and fines, explained Liew.

MyPay, on the other hand, consolidates all the payment details from different government agencies in a single platform, with a single login, and seamlessly provides options to pay the dues.

To be able to provide this billing information to customers, MyPay was developed using structured language and was connected to all the systems in the government.

“The information is then pulled by API. When we ping the government agencies for details, the information is retrieved straight from their database,” said Joshua Smith, CTO of MyPay.

By doing so, MyPay is able to produce the latest, most updated information and alerts the users of any unpaid dues, potentially avoiding penalties and other fines.

“Reminders are sent to users as soon as we get the data from the agencies’ database. We run synchronization with their databases at frequent intervals,” Smith said.

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Tech Wire Asia | 21 August, 2019

A customer-focused digital payment platform

Besides solving the information void, which is one of the major pain points that MyPay addresses, the platform is also designed to deliver enhanced customer experience.

“We have built a product and optimized the UI/UX so that transactions could be completed with very little keystrokes as possible, and worked to remove the frictions usually seen in these types of apps.

“Further, we also have dedicated help desks to help users complete their transaction with the different agencies they are dealing with,” said Liew.

Both Liew and Smith acknowledge that the platform deals with a lot of sensitive user information, and thus, security is absolutely paramount for the company.

The platform deploys the “one-to-one-to-one” security measure — which is a three-step layer, unique key verification process. Users are required to enter their government-issued ID number, phone number, and e-mail, which are then tied together and used to verify one another.

This process ensures that each individual is only able to create one MyPay account without any duplication so that identity thefts and fraud can be avoided.

Beyond that, the platform also issues temporary access codes (TAC) to confirm the owner of the phone number.

“We employ a lot of different techniques to ensure that we are secured to the highest edge. We have everything from SSL, industry-standard hashing and encryption, partitioning databases so that even if we’re penetrated, the risk would be minimal,” Smith said.

MyPay is a mobile-optimized low-latency webpage that runs on browsers. According to Liew and Smith, MyPay decided to pursue the Progressive Web Apps (PWAs) route so that everyone can benefit from the platform.

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James Sivalingam | 30 July, 2019

“Many in the rural parts of Malaysia does not have the privilege to own expensive phones, such those in the cities. Downloading a new app means deleting another app or photos for them.

“This way more people can access and use the service,” explained Smith.

MyPay consumes very little data with an average of 20KB for each session. Loading time across all databases only take an average of 15 seconds.

About 25 APIs are used at the moment, with 1,151 more in the pipeline — indicating that the company aims to get more out of the niche it has identified, creating a better, more useful UX in the process.

The post MyPay goes the extra mile to carve a niche for itself in Malaysia appeared first on Tech Wire Asia.

WHY MALAYSIAN SMES ARE STRUGGLING WITH INDUSTRY 4.0

Tech Wire Asia | 21 August, 2019

As SMEs position themselves to become key enablers of economic growth, many struggle to digitalize. In Malaysia, many SMEs find that the digital gap between them and their technologically advanced counterparts in China and Japan grows constantly.

Last year, Facebook partnered with the Malaysia External Trade Development Corporation (MATRADE) and e-commerce platform Avana to address the digital skills gap among Malaysian SMEs by providing them with training and resources.

The program, titled “Made by Malaysia, Loved by the World,” was created with the aim to help at least 2000 Malaysian SMEs to export their product to the regional market and facilitate cross border transactions.

SMEs were able to pick up skills in market research and digital marketing, and develop an e-commerce presence via training conducted by Facebook to adopt digital solutions and accelerate their growth.

“In our Future of Busines study done in 2018, 97 percent of SMEs told us that social media and online tools are really important in helping them drive their business and transformation for their business,” said Facebook Malaysia Country Director Nicole Tan at a recent coffee chat with the media.

Addressing the challenges

According to Tan, one in 10 Malaysian SMEs are already trading internationally, and this program is perfect for companies which aim to market their products globally.

From engaging with many SMEs in the past year, Tan found that local enterprises face two big challenges — how to attract new customers and how to expand internationally.

“When we were talking to a lot of the SMEs, one thing that struck me was that they do not have the means to do research the way the large companies can. They have very little information on what market to expand into next,” said Tan.

To solve this issue, Facebook has built a tool called Cross Border Insights Finder which helps SMEs make better decisions when entering a new market.

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Soumik Roy | 6 August, 2019

At the coffee session, Facebook told the media that it is preparing to launch phase two of the program, after successfully training 1000 SMEs thus far.

The next of the program will see the addition of DHL Express, which is expected to address critical knowledge gaps in cross border commerce.

“DHL Express will be sharing global insights and learnings that they have done across countries around logistics supplies, which SMEs will find valuable,” Tan said.

Helping Malaysian SMEs go global

One SME which was part of the program is Oleh Elona, a natural skincare company. The founder of the company Tengku Elona told media that the program helped her business.

“Since participating in the program, I’ve seen a significant increase in sales numbers, and I have gained valuable knowledge in expanding my business beyond Malaysia.”.

She added that going digital has allowed her business to be open 24 hours, seven days week, and advertising on digital platforms are quite cost-effective.

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Soumik Roy | 19 August, 2019

Another SME owner, Rose Nizeana, who produces and sell gourmet chili condiments under the brand name Auntie Tim, said the digital platform had allowed her business access broader market.

“We get orders from the Phillippines and Indonesia now, as well as inquiries from Brunei.”

Overall, with Facebook preparing to renew the program with a new partner in tow, Malaysian SMEs will have plenty of exciting opportunities to look forward to in the next year.

The post Understanding Facebook’s quest to transform Malaysian SMEs appeared first on Tech Wire Asia.

DATA INFRASTRUCTURE KEY TO AI DEPLOYMENT SAYS TELCO DATA CHIEF

Soumik Roy | 28 March, 2019

Being a low-risk alternative to traditional financial crime, the rise in telecom fraud costs the industry more than US$32.7 billion annually, according to one estimate.

While the fraudulent activities itself are not new, it poses new challenges for law enforcement and telco providers everywhere and many organizations in the space realize that a novel approach is needed to address the issue effectively.

One Malaysian telco conglomerate, with extensive operations within Asia, decided to pursue precisely that when it chose to leverage data analytics to thwart telecom fraud.

Axiata Analytics Centre’s AI Head Ravi Kumar Madavaram explained that charges for international calls vary, depending on the country of origin and the destination, as well the trunk used to connect the call.

“For example, a call from the Middle East to Nepal is more expensive than a call from Malaysia to Nepal. Because of that, people route the call from the Middle East, to Malaysia to call Nepal,” he said during his presentation at the recent Malaysian Institute of Accountant’s Forensic Investigation and Fraud Analytics Conference.

By doing so, they end up paying far less to local providers, which is a massive problem for Axiata’s subsidiary in Nepal, NCell, as up to 25 percent of its revenue comes from overseas Nepalese workers calling their families at home.

“We have very little information about the parties that are making these calls, but we need to identify them with the data we do have,” Madavaram said.

This is where data analytics comes in handy for the company.

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Combatting telecom fraud with machine learning

Using data analytics, Axiata captures all the data available on these calls to review it against a specific set of thresholds and look out for particular signatures and flags.

“One of the key challenges in fraud is to continually think of how to identify different fraud patterns and subsequently stop it,” said Madavaram.

For example, one could identify a particular trend or pattern and block it, but the perpetrators will easily switch and try a different method, he said.

However, the challenge could be overcome with the use of machine learning (ML).

Madavaram explained that once the different traits of fraud are fed into an ML-based model, it can highlight potential activities that could be further investigated.

He added the ML algorithm implemented by his team in Axiata does not require human intervention when it comes to setting the rules and parameters.

“The model itself picks up trends and flags potential fraud,” he said.

Telecom fraud is not the only area where data analytics is being deployed within Axiata. The company has integrated data analytics as part of its internal audit process to enhance the accuracy and efficiency of its audits, among other things.

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Axiata currently has a 50 people analytics team supporting all its regional brands and business units, including its e-wallet platform Boost.

The post How Axiata uses data analytics to thwart telecom fraud appeared first on Tech Wire Asia.

WHY SOCIAL E-COMMERCE IS SET TO BECOME THE NEXT BIG THING IN CHINA

Tech Wire Asia | 19 August, 2019

By using AI, the country can analyze vast amounts of data more efficiently to curb socials ills and crimes, provide effective public services, and improve healthcare and education sectors.

Further, development and integration of AI technology within the different sectors in the world’s second-largest economy is also expected to create a whole host of new high skill tech jobs in China, as it seeks to transform itself into a tech-driven economy in the near future.

But beyond all of that, AI is capable of addressing problems unique to China due to its geography and demography.

Dean of the Schwarzman College at Tsinghua University, Xue Lan, said that due to the vast landmass and differences in the population density between its urban and rural parts, China faces specific challenges in keeping public order.

Xue, who is currently advising China’s science and technolo0gy ministry on AI governance said that neutralizing crime in big Chinese cities, for example, could be extremely difficult without the help of advanced camera surveillance and AI-powered facial recognition technology.

“Yes, facial recognition may infringe on personal privacy to a certain degree, but it also brings a collective benefit, so it is a question of how to balance individual and societal benefits,” said Xue.

China established an AI governance expert committee last February, comprising of experts from both academia and industry, of which Xue is a member.

The committee announced eight AI principles with the central theme of “Developing Responsible AI,” offering guidelines and standards to industry associations.

Healthy development of AI-based solutions

According to Xue, concerns about privacy infringement are superseded by the need for stability in China.

“China is such a big country experiencing a giant transformation; there are great challenges to maintain social stability and protect people’s property and lives.

“In whichever country, to guarantee security, there are trade-offs between protecting public safety and violating privacy,” said Xue.

Beyond public safety, China also realizes that the transformative power of AI is significant in terms of economic output, and the country is keen on gaining the first-movers’ advantage.

A couple of decades ago, the country was slow to industrialize relative to the Western countries and regional neighbors such as Japan and South Korea. It is not willing to let that happen again, specifically given the vast amount of data the country sits on, which is crucial to the accelerated growth of AI.

AI-based solutions are capable of increasing productivity in hyper-industrialized China, transform businesses, and turbocharge the country’s economic development objectives.

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Soumik Roy | 15 August, 2019

Two years ago, China announced its ambitions to become the world leader in AI technology by 2030, with a local AI industry worth up to US$150 billion.

Subsequently, the government brought in many of the country’s tech titans such as Baidu, Tencent, and iFlyTek to develop the technology.

In the coming months, great developments in the AI space are expected from China — with the state taking adequate precautions to protect and safeguard its citizens against risks.

The post Why economic benefits of AI outweigh privacy concerns in China appeared first on Tech Wire Asia.

WHY SOME EXPERTS BELIEVE DIGITAL TRANSFORMATION STARTS WITH FINANCE

James Sivalingam | 2 August, 2019

But for the global money transfer and payment services company MoneyGram International, investments in digital technology is not just about acquiring the hottest tools in the market, but a means to serve its customers better.

“Technology should be an enabler. MoneyGram does not believe in [deploying] technology just for the sake of it, but to make the process of transferring money easier,” said MoneyGram Head of APAC, Middle East, and South Asia, Yogesh Sangle in a recent interview with Tech Wire Asia.

According to Sangle, improving the process of sending money has multiple facets to it, and MoneyGram relies on technology to get the job done while also being cost-effective.

Technology to enhance customer experience

In addition to speeding up transactions and offering instant transfers, MoneyGram also needs to ensure funds are transferred safely and securely.

To achieve that, MoneyGram has, in recent times, invested in compliance tech, to alleviate the customers’, and regulators’ anxiety alike, Sangle said.

“At the end of the day, when you move money across borders, any regulator or customers are always concerned if the monies will be delivered to the intended recipients.”

Beyond that, MoneyGram also deploys technology to combat scams and fraudulent syndicates that use its platform to prey on unsuspecting consumers.

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“I really hate it when anybody uses MoneyGram to carry out illicit activities and perpetuate any kind of crimes. So we have invested a lot in technology to curb that. As a result, our fraud rate is by far the best in the industry.”

As part of its transformation drive, MoneyGram also has launched 28 country-specific websites and mobile apps which allow customers to remit money efficiently and quickly, online, in addition to its traditional agent facilitated transactions.

Collaborative model keeps innovation on track

Aside from developing its own solutions, MoneyGram has also adopted and embraced a partnership model, where it works with regional partners and technology companies to help deliver better service based on consumer demand and market forecasts.

For example, when digital wallets were taking off in China, MoneyGram was quick to partner with Alipay, in order to capitalize on that segment. It did the same in the Phillippines, tying up with country’s digital payment app GCash.

“Whenever we are working with these partners, we are ensuring that we are solving customers need, and not just about launching a digital wallet.”

“Our partners are our strength, and we rarely compete with our partners,” Sangle said, adding that whenever possible, MoneyGram enables and empowers its partners to grow and expand in their respective markets.

This is possible because MoneyGram has a robust engine and APIs which allow it to perform trans-continental money transfers within minutes, on which smaller regional partners can build on, according to Sangle.

“And partners bring in deep expertise in local markets, something which we cannot afford to develop in 200 countries that we operate in,” he said.

Sangle also stated that emerging fintech players such as Alipay are more capable of developing technology that provides better UI/UX for consumers.

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James Sivalingam | 26 June, 2019

“Ultimately, we want to serve the customer better, and we are open to any innovation that helps us achieve that.  Which is why this model works for us.”

Recently, MoneyGram renewed its partnership for another five years with EZ Money, its largest agent partner in Malaysia, ensuring the former’s services continue to be offered across the latter’s network.

The post How collaboration is driving MoneyGram’s DX journey appeared first on Tech Wire Asia.

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Soumik Roy | 23 July, 2019

And accordingly, businesses are pulling out all the stops in deploying the latest digital technologies, such as cloud computing, ERPs, AI-powered data analytics, and robotic process automation in an effort to improve their operational efficiencies.

However, despite all the enthusiasm and investments, DX success seems to continue to be elusive. One McKinsey study, for example, said that only about 30 percent of companies that have embarked digital journeys have succeeded in improving their business performance.

This appalling success rate could be attributed to many things, but one of the most glaring factors is the lack of a single source of truth, especially when transparency and access to real-time data play a critical role in DX.

Before automating critical business processes such as procure-to-pay, order-to-cash, and hire-to-retire, companies need to ensure that these processes are based on accurate and robust financial data, which is often not the case, as indicated in this study.

It is bad enough that only 38 percent of the professionals trust the accuracy of their organizations’ financial figures, but what is worse is the fact that a big majority of them (69 percent) feel that leaders have made critical business decisions based on inaccurate financial data.

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James Sivalingam | 8 July, 2019

Addressing the data discrepancies

Businesses should realize by now that DX built upon flimsy processes and outdated data is more likely to fail.

To remedy this, leaders should first look inwards and figure out how they can fix the financial data discrepancies.

Simply put, companies should look to modernize and transform their finance and accounting departments, as part of their DX project.

Far too often, these two departments are mere afterthoughts in transformation efforts and are forced to use “bolted-on systems” and “finicky customized processes” which is more of a liability than an improvement.

As a result, the digitalization happens at different paces and fortifies the siloed disconnect between operations and data.

Beyond that, businesses also end up missing out on the golden opportunity to carry out an organization-wide transformation and modernize every department at the same time with a fully integrated system, such as an ERP solution.

Modern ERP solutions that boast of unprecedented customization capabilities with add-ons for the different departments within an organization quickly solve data discrepancy issues, collapse all the silos, and provide the elusive single source of truth.

Furthermore, these solutions could also be integrated with accounting automation tools such as RPA, improving efficiency as well as reducing the risk of human errors and enhancing data integrity.

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In short, many digital transformation projects fail, partly because decisions pertaining to them are made based on inaccurate, outdated financial data.

Thus, the accounting and finance department should play a more significant, foundational role in all digital transformation process, and one way to do that is to transform these departments first.

The post Why some experts believe digital transformation starts with finance appeared first on Tech Wire Asia.

ARE BANKS REALLY COMPETING WITH FINTECH COMPANIES FOR BUSINESS?

James Sivalingam | 26 June, 2019

According to Bank Negara Malaysia, this is because of the lack of financial literacy and awareness of the importance of savings.

These problems tend to be more pronounced with the segment of the country’s population whose income is among the bottom 40 percent (known as the B40 category in Malaysia).

One startup, however, is aiming to empower this particular group by helping them save using technology.

“Pod is a micro-savings app that helps young Malaysians save money, for now. Our bigger mission is to become a digital bank eventually,” Co-Founder and CEO Nadia Ismail told Tech Wire Asia in an exclusive interview.

What makes their platform different from the other fintech players as well as traditional financial institutions, is Pod’s ability to get people to start saving with as little as ten cents.

“It is pricier for traditional financial institutions to do this, and it is also costlier for them to reach out for the type of audience we’re currently looking at, which are youths aged 21 to 35,” explained Ismail.

According to her, this particular segment of the population in Malaysia and Southeast Asia does not have the proper tools and resources to start saving and to eventually invest their monies.

“We realize that it is very important to personalize the savings experience, as people may save for different reasons. That is why we make sure that personalization is a key element in delivering our service,” Ismail said, before adding that the bigger banks are not doing this at the moment.

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Pod ensure seamless savings

By using emerging technology such as AI, Pod provides users with personalized, intuitive experiences to get them to save towards a predefined goal and provides them with insights on their spending patterns.

For example, if someone is consistently spending a specific amount every day on average, and spends slightly less on a particular day, Pod will prompt the user to move the “unspent funds” to the savings account.

“As we capture more information and data, and learning more out our users, Pod will eventually be a highly personalized platform that offers useful and beneficial financial insights,” said Pod’s Fellow Co-Founder and COO, Yingteng Ng.

Ng pointed out that financial platforms currently available in the market only show the transactions as is, which is not as valuable.

Beyond AI, Pod also will be using API integrations to enable users to save money while spending at their favorite merchants and retailers.

By rounding up users’ leftover change, Pod transfers the balance into users’ savings account, so that users can make progress toward their goals, passively, explained Ng.

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Pod’s innovative solution to empower the B40 community in Malaysia got them noticed in the fintech community across the world.

They were among the three finalists highlighted at MyFintech Week 2019 earlier this month, as part of the Malaysia B40 Challenge, an initiative by Financial Innovation Lab Malaysia.

The Financial Innovation Lab is a collaborative project by UNCDF, Bank Negara Malaysia, and MDEC that is funded by the MetLife Foundation.

The post Can financial literacy help the Malaysian economy flourish? appeared first on Tech Wire Asia.

THE STRATEGIC ROLE OF DIGITAL MARKETING IN IMPROVING THE BUYER JOURNEY

Michelle Chan | 12 June, 2019

Achieving this transformation is understandably critical in the modern marketplace, and the task has not been simple.

Marketers often find themselves facing the same set of challenges, which include the lack of an effective strategy, failure to secure the buy-in of relevant stakeholders, insufficient resources, and the lack of consensus.

It is generally unwise to deploy technology without proper planning, budget, or process. Similarly, getting a budget or allocation approved by management could also be difficult if they can’t measure or gauge the impact of digital experience.

Further, marketers also face the content and data challenges which could potentially have a significant impact on their organization’s revenue streams, or worse, customer experience.

Here are some of the significant challenges that marketers face in the digital age, and how to overcome them:

#1 | Addressing the leadership disconnect

Many business leaders are often reluctant to approve a budget for new technology or tools for marketing purposes.

This happens due to a massive disconnect, as leadership fails to understand the technology, processes involved, and the outcome of creating an effective digital experience.

Thus, marketers need to articulate their vision and the impact of being digital-first across the business.

Marketers must aim to form a strategic alliance with their leadership to ensure that their digital strategies are focused on achieving the company’s business goals.

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#2 | Leveraging the right technology

While many emerging technologies are available that can help marketers improve customer experience, it is essential to deploy the right tools for the right tasks to ensure an effective digital experience delivery.

For example, AI-powered tools could automate many repetitive tasks, while big data analytics could provide insights that enhance targeting capabilities.

Marketing teams must establish a clear plan on how they will deploy these technologies to get the best outcome, make smarter decisions, and deliver better personalizations.

#3 | Gaining actionable insights from data

Businesses collect a lot of data in the digital era, thanks to the ease of data collection and storage technology.

But simply holding on to the data is useless. Businesses need to gain valuable and actionable insights from their data to build a better digital experience for their customers.

Organizations need to collapse all the silos and implement a secure system that makes it actionable across all marketing platforms and delivers a world-class customer experience.

#4 | Getting personalization right

Personalization has emerged as one of the most critical element when it comes to providing enhanced customer experience.

Modern technologies such as AI and big data analytics allows for an unprecedented level of personalization, but marketing teams seem to struggle with it.

The problem is many marketers often approach personalization in a standardized fashion that does not fit their particular business model or target market.

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To overcome this issue, it is essential to always start small, with few creative ideas, while building a framework based on business KPIs.

By implementing ad-hoc strategies, wherever possible, marketers could make personalization their strongest suit.

The post How to overcome the challenges of delivering a digital experience appeared first on Tech Wire Asia.

WHAT IS STALLING THE CRYPTOCURRENCY INDUSTRY IN ASIA?

Tech Wire Asia | 4 January, 2019

And accordingly, Singapore’s recent proposal to waive sales tax for goods and services paid for with digital payment tokens will immensely benefit the country’s cryptocurrency exchanges, blockchain managers, and entrepreneurs.

By waiving the 7 percent goods and services tax (GST), Singapore will also edge closer to Hong Kong in regards to tax friendliness to cryptocurrencies, claimed accounting firm PwC.

According to a partner in PwC’s Hong Kong corporate tax practice, Gwenda Ho, the move by Inland Revenue Authority of Singapore (IRAS) is likely to drive innovation in the blockchain development circles.

Ho said, ” In the past, when Singapore entities issued tokens through an initial coin offering (ICO), because the issuers did not want to incur extra compliance costs [through the GST], they would usually exclude Singaporean participants.”

An ICO for a cryptocurrency is a crowdfunding exercise often carried out by startups to fund their projects.

Coinciding with Singapore’s Ministry of Finance consultation on its draft GST (Amendment) Bill 2019 that ended last week, the IRAS issued a draft e-Tax guide which explains the proposed GST waiver.

Leveling the playing field for cryptocurrencies

“The IRAS recognizes that taxing cryptocurrencies which function, or are intended to function, as a medium of exchange (digital payment tokens) results in two tax points – once on the purchase of the cryptocurrency and again on its use as payment for goods and services subject to GST,” said the guide.

This proposed exemption, however, will ensure that the playing field is equal for both cryptocurrencies and fiat cash, according to industry observers and stakeholders.

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Furthermore, the exemption would also update Singapore’s taxation policy on sales which would make it comparable to that of Japan, Australia, and the EU, the ministry asserted.

So long as the token fits the definition of “digital payment token” within the IRAS guide, the proceeds from its ICO could potentially be GST exempt, according to Ho.

There were some 650 ICOs issued worldwide last year, which raised a combined US$16.7 billion, but in Asia, the combination of strict regulation and high rate of project failure has checked the issuance.

Asset managers to benefit?

According to IRAS definition, a digital payment token must be expressed as a unit and is “fungible” or mutually interchangeable by identical items, while not denominated nor pegged in any currencies.

The authority listed Bitcoin, Ethereum, Litecoin, Zcash, among others as an example of digital payment tokens.

In addition to that, the tokens should also be accepted by the general public as a medium of exchange, which excludes loyalty points and other gaming credits that are issued by retailers.

Meanwhile, cryptocurrency exchanges and asset managers could also be among the beneficiaries of the proposed GST waiver, according to PwC’s Ho.

At the moment, businesses in Singapore that provide cryptocurrency trading services or manage client investment are subjected to corporate taxes for onshore generated profits, similar to Hong Kong’s tax structure.

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“While this proposal would improve Singapore’s competitiveness in its GST treatment on cryptocurrencies, Hong Kong in comparison is completely free of any sales tax, so there is one less tax issue to be concerned about for cryptocurrency industry participants,” opined Ho.

If the proposed is waiver is adopted, it will become effective starting next year, which will, without a doubt, have a positive effect on the country’s cryptocurrency space.

The post Should Singapore waive GST on digital payment tokens? appeared first on Tech Wire Asia.

CAN API INSURANCE PLATFORM SOLVE THE PAIN POINTS IN THE INDUSTRY?

James Sivalingam | 23 July, 2019

In the digital era, customers expect customized insurance policies, data-driven underwriting, as well as seamless claims processing and insurtech companies deliver.

As a result, many insurtech startups have successfully disrupted the insurance sector in many markets, leaving established insurers scrambling for new ideas to keep up.

However, there has been a realization in recent times that, instead of competing, collaborating may serve their mutual interests.

Modern insurtech platforms and traditional insurance providers possess unique qualities and strengths that could be combined to provide better services to customers. Last year alone, this type of collaboration attracted over US$4.1 billion in funding.

To ensure these partnerships fully unlock their true potential, global multinational risk management, and insurance brokerage firm Willis Tower Watson has come up with a “five S” framework to help insurance companies overcome inherent organizational risks that could impede innovation.

#1 | Sponsorship – From the top

For any partnership to work, it requires buy-in from the executive level. The top management has to show commitment, conviction, and vision on how insurtech will bring more value to the company.

The business leaders also have to allow the entire enterprise to experiment and try out new methods in their pursuit of innovation, which could be at odds with typical corporate culture.

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James Sivalingam | 26 June, 2019

#2 | Sight – Finding the right partner

As the insurtech space is getting crowded quickly, insurance companies must choose a partner that could provide the right elements to help achieve business goals.

Leaders need to be able to identify, attract, and foster a working relationship as well as align their strategic business objectives.

#3 | Separate – Allowing room to grow

Developing a new solution to may take some time and insurtech firms, as well as insurance carriers, must establish appropriate testbeds to nurture technology until it becomes mature enough to be integrated into the business process.

Creating innovative platforms within the usual business operation may be challenging, and office bureaucracy, processes, and metrics could suppress innovations.

#4 | Speed – With caution

Being agile and nimble by nature, insurtech firms often move at a quicker rate compared to traditional carriers that have more structured but also considerably slower decision-making processes.

Companies need to provide a safe environment where tech-driven innovation can flourish, and teams need to be empowered to grow and learn quickly.

#5 | Stealth – Be patient

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Finally, companies also need to move stealthily during the insurtech development phase to maintain a competitive edge.

As the insurtech space is relatively new and small, keeping these initiatives under wraps until they’re truly ready for deployment would only help the company in the long term.

The post How insurtech and insurance providers can collaborate better appeared first on Tech Wire Asia.