IN today’s ever-competitive banking environment, financial institutions face an array of challenges, ranging from disruption because of financial technology (fintech) to market volatility and changing regulations. Data from EY’s 2022 Tech Horizon Survey, mentioned data and analytics are one of the highest areas of investment in the Asia-Pacific region (APAC). Despite the clear benefits of a data-first approach, the results showed only 8 percent of financial institutions in APAC describe themselves as data-centric today. Allan Tan, author at FutureCIO, wrote about the need for the financial services industry which often relies on legacy technology to modernize its data platform to better store, access and analyze massive real-time data with the global market reaching $28.6 trillion in 2025.
In an interview with David Irecki, director of Solution Consulting, APJ at Boomi, we discussed how APAC FSIs could modernize and stay relevant through effective data management. Analysis of the Tech Horizon survey reveals a high proportion (39 percent) of APAC financial institutions are still in the incremental stage of tech transformation. About 40 percent of financial processes like cash disbursement, revenue management, and general operations could be automated, according to a 2018 Mckinsey survey. Irecki lauds the great initiatives of the Bangko Sentral ng Pilipinas (BSP), such as the Digital Personal Equity Retirement Account (PERA) and the Digital Payments Transformation Roadmap. A key goal of the BSP’s Digital Payments Transformation Roadmap is to convert 50 percent of total retail transactions to electronic channels by 2023 and increase the number of Filipino adults with bank accounts to 70 percent.
The analysis of the Tech Horizon survey emphasizes that meeting changing customer demands is the primary aim of transformation within the region. However, APAC financial services institutions (FSIs) are less advanced in their transformation journey compared to FSIs globally. I asked Irecki how banks and FSIs benefit from the automation and integration of their systems. “If you look at fintechs, not only in APAC but across the globe, they’ve been really successful in a lot of areas, and they’re able to on board more customers with a lot less staff than the existing banks could and the reason is automation. They’re automating application processing for detection, credit scoring and loan qualification so they’re able to very quickly roll out new programs compared to a lot of the banking systems. So, automation is definitely a big thing that the banks are moving forward on because of that competitive pressure from fintechs, but once you improve those processes in the automation, then customer lifetime value becomes very important,” Irecki explained.
He further elaborated on how an Integration Platform as a Service (IPaaS) could help FSIs become more agile and adapt their services efficiently. With an array of obstacles — from different regulatory requirements and customer expectations to new business models — FSIs must adapt to meet the pace of industry trends. This includes modernizing existing applications and processes as well as migrating to the cloud. Escalating amounts of data coming in various forms complicates efforts at gaining valuable insights. As an iPaaS solutions provider, Irecki cites three areas that Boomi could help FSIs: legacy modernization, process automation, and delivering a superior customer experience. They could help connect these legacy systems with modern systems, enabling data and functionality to flow seamlessly between them. Workflow automation capabilities allow organizations to automate various processes and workflows, reducing manual work and errors. This automation could increase efficiency and speed up processes, leading to improved customer experiences. Boomi is also helping FSIs provide solutions to industry trends in technology modernization, data and analytics, open finance and banking-as-a-service. Financial institutions need to modernize their data platforms in order to cope with the growth of global FSIs and the increasing volume of real-time data they generate.
Recently, Boomi received recognition as a Leader in IDC MarketScape: Worldwide Cloud Integration Software and Services (iPaaS) 2023 Vendor Assessment. The inaugural study assessed the iPaaS market among 12 select vendors and evaluated the strengths of their offerings. In its report, IDC MarketScape said, “As one of the founders of cloud integration, Boomi has a strong track record of providing integration solutions to businesses of multiple sizes and in many regions and industries.”