Singapore has established itself as a leading global financial centre. According to the Global Financial Centres Index (GFCI), Singapore was ranked the 4th most competitive financial centre in the world. The country offers a cost-competitive and effective regulatory environment. On top of an excellent infrastructure, Singapore also boasts a highly skilled pool of finance professionals.
Future economy: Top 4 trends in the industry
Rise of digital players
The country offers strong growth potential and a favorable environment for fintech companies. Ease of doing business might be a reason why we are witnessing a rise in these digital players. As the number of fintech companies continues to grow, having the edge over your competitors is critical. It has become a necessity for the finance companies to move in tandem with the technologically advanced society. If you want to stand out, you have to cater to the needs of the consumers.
Consumers becoming tech-savvy
Today, the mindset of consumers has changed drastically. With an increase in accessibility and affordability of smartphones and the internet, people have become tech-savvy. Their fast-paced lives have left them with limited choice. They are inclined towards platforms that can assist in simple and quick financial transactions.
Dominance of cloud
There has been a significant increase in cloud adoption in the industry. According to Sassoon Grigorian, Chairman of the ACCA Financial Services Industry Special Interest Group, “Cloud computing is transforming the financial services sector by presenting a viable, secure and cost-efficient model for delivering customer-centric services.” He further added, “There have also been developments in technology whether it be blockchain, fintech or other financial service developments, which further drive the need for cloud.”
Companies are realizing the potential that the cloud has to offer in addressing the evolving needs of businesses. Digitization and the adoption of cloud solutions have become a necessity. DBS is the first bank in Singapore to transform one of its traditional data centres into a cloud-optimized centre. This cloud adoption is in resonance with the bank’s mission to become more agile and scalable. Consequently, it will also contribute towards the bank’s sustainability agenda by improving energy efficiency by at least ten times.
Furthermore, the Singapore Government has been encouraging digital adoption with initiatives like SMEs Go Digital, Smart Nation, and so on. In a bid to prepare Singapore’s financial sector for the future economy, the Monetary Authority of Singapore (MAS) has been taking specific measures. MAS will be streamlining the financing channels for next-generation Asian growth companies. Additionally, the body would be building a technological infrastructure to drive innovation.
Merger of new-age technologies into our everyday lives
Last but not the least, digital platforms automate compliance processes. With automation, chances of human error are reduced. The use of the right technology ensures that consumers are meeting compliance standards. Digital companies are using new age technologies to address the concerns of the consumers. With AI and Big Data, financial organizations need to enhance their data analytics capabilities to improve their business productivity. According to an article published in Ag Delta, Artificial Intelligence is being used to advise on investment strategies and solutions, and processing data in real-time. This platform ensures that every deal or execution is communicated to the banker and his/her client.
Cloud-based ERP for the finance industry
One of the technologies that companies in the finance industry must have is a cloud-based Enterprise Resource Planning (ERP) system. A robust ERP can help financial companies manage their business process end-to-end with real-time information. Since the tool has a centralized database, different departments can communicate with each other seamlessly. In addition to being a cost-efficient software, the ERP system also helps enterprises to be statutory compliant and automate the majority of the process.
Baker Tilly TFW, one of the largest accountancy and business advisory firms in Singapore, has been using Deskera ERP to automate their day-to-day business processes. By using this user-friendly tool, the company witnessed a 60% increase in productivity in its accounts department. Overall, there was a 25% increase in the company’s business productivity.
Therefore, enterprises need to leverage on the tech tools that are at their disposal. Choosing the right solutions and walking on the path of digitization is the key to your success story.