Since 2010 more than
$50 billion has been invested in almost 2500 fintech startups globally. Fintech is the intersection of financial
services and technology. Fintech
activities can be broadly classified into the following; payment, deposit, lending
and capital raising, market support, investment management, and clearing and settlement.
Many fintech companies in Singapore have already amassed many consumers online
and entered traditional services offered by banks. They are mostly focused in the first 2 areas
that is broadly payment and lending.
E.g. Dash for payment and MoolahSense for lending.
OCBC’s response to the
fintech wave is to actively adopt new strategies into looking at the payment
area as well as looking at ways to improve internal operational efficiency by
In February 2017 OCBC
started a unit called The Open Vault to bring in fintech start-ups to use the
bank’s database and interfaces to test and develop new ideas into
solutions. It will focus on wealth
management, credit and financing insurance, cyber security and artificial
intelligence. OCBC will own any new solutions emerging from The Open Vault.
This accelerator gives OCBC a higher chance of spotting potential startups/new
technologies which will bring the company greater profits.
OCBC launch its standalone mobile payment apps “Pay
Anyone” in 30 May 2017. With this app,
customers can simply scan QR code at participating merchant’s NETS terminal to
pay for their purchase directly from their OCBC Bank account. After authenticating the transaction securely
with a fingerprint, the payment is immediately deducted from the customer’s
OCBC account and paid to the merchant thru NETS. This is unlike mobile wallets which require
additional steps of topping up the mobile wallet using a bank account.
OCBC will release its unique
mobile payment apps “Pay Anyone” in 30 May
The QR code cashless
payment is part of the OCBC Pay Anyone e-payment services. L Launched in 2014
it lets customers send money directly to any bank account in Singapore using
just the recipients mobile number, email address or Facebook account, without
using token or add the recipient as a payee.
In October 2017 OCBC,
HSBC, Mitsubishi UFJ Group along with the Infocomm Media Development Authority
(IMDA) has become the first consortium in South-east Asia to develop a
prototype for a Know Your Customer (KYC) blockchain. The KYC blockchain is the process for
financial institutions to identify and verify clients’ credentials such as
opening an account or apply for credit facility or insurance policy. The KYC blockchain will enable structured
information to be recorded, assessed and shared among the participating
institutions. With the customer consent banks are then able to collect,
validate and share customer information more efficiently and securely. This will also enable the banks to detect
potential money laundering activities.
November 2017 OCBC announces that it will be partnering AI Fintech firm –
ThetaRay to detect suspicious fund flows.
OCBC will be the first bank to tap AI and machine to combat financial
crime. In early test, the fintech’s technology
was able to reduce the number of alerts that did not require further review by
35%. And it is able to categorizing the
flag transactions into risk levels this will help to increase the accuracy of
identifying suspicious transactions by up to four time. If it is implemented successfully