Addressing the first ever API Asia Conference at the Shangri-La Colombo yesterday, Sachin Seth, Partner - Digital, Fintech & Tech. Transformation Leader EY Advisory (Africa, India & Middle East) stressed on the importance of Sri Lanka moving towards digital transformation across industries.
In his session, referring to global examples where new business innovations had caused disruptions in multiple industries such as transportation, lodging, communication and entertainment, he stressed that disruption is also happening through convergence of multiple industries such as banks, telecom and retail.
He quoted based on some of the published data that nearly 40% of Businesses may get disrupted in next 10 years, if such companies opt to stand still during this phase of technological evolution.
Speaking on the retail industry being involved in the financial services sector, he elaborated a case where a retailer is evaluating the option of offering credit to customers based on customer profile. This will result in the retailer acting as the de-facto credit provider resulting in the less need for credit card and short-term loans from banks.
He elaborated the possibilities of the banking and financial services industries being disrupted through innovative business models and innovative methods which today we may not see as a viable model.
In addition, he presented the multitude of startups/ fintech innovations taking place in India that is disrupting the traditional financial services market and bringing financial inclusion to the rural masses. He also discussed how non-financial service companies such as messaging platforms are moving into the financial services landscape taking “We-Chat” a Chinese company as an example.
Seth continued to explain how businesses can ideate, create and operateanfirst of a kind digital lending platforms, taking the example of first of a kind globally lending platforms which has disrupted the Indian lending space. He elucidated EY’s contributionto bring it to life within a short period of about 5-6 months where the solution enabled the customers to apply for a loan and can have the cash in the account within 3 minutes, subject to meeting risk criteria.
This disruptive innovation resulted in the market huge growth in providing micro as well as business credit growth of the organization.
He also discussed how Sri Lanka companies can refer to this use case to overcome challengers faced within the local lending market.
In addition, he also discussed how telecom companies are paying an active role with the financial service companies to bring together services and provide innovative customer experiences.
While discussing all these impressive innovations, he also discussed areas where attentionhas to be paid both by regulators and consumers around the topics of privacy and cyber security.
In his concluding remarks, he discussed multiple projects EY has carried out across the financial services/ Fintech landscape to help innovative and disruptive companies to execute their strategies.
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