It comes as no surprise that personalized financial products have mushroomed particularly to attract customers. They include Personal Financial Management (PFM) and Robo-advisor, the financial instruments that select the products that suit individual customers, especially those of Gen Z. The BAI Banking Outlook: Trends In 2020 research found that 64% of respondents valued Personalized Banking Experience particularly when it came from recommendations on the financial products that match their spending habits and lifestyles. Besides, consumers of the new era tend to leave a bank or financial institution that cannot offer personalized experiences.

Apart from impressive experiences for customers, what is necessary for businesses to keep people with them for good is to create connectivity. This means stimulating participation and making customers feel that products are part of their life and are the platforms that can connect them to their friends and acquaintances. This makes financial matters joyful and existing customers will be willing to persuade others to also use such favorite products.

Fun first, then understanding

The development of a product needs not only the 2 elements namely “usability” which refers to, for example, user experiences and user interfaces and “usefulness” for users based on product information and recommendations, but also “connectivity” which is an important factor to create the uniqueness that leave competitors behind.

From its first-hand experiences, Bluebik, which has been advising large business organizations on the application of innovations and technologies for strategies and management and helping them set their financial goals, has found that “connectivity” can be created through the “gamification” technique which refers to the inclusion of quizzes in platforms. It is similar to personality tests to identify the financial personas or spending habits of customers who can be roughly divided into three groups – shoppers, investors and savers.

The presentation of financial personas not only make people feel that financial matters are there in their everyday life and easily accessible but also lead to the development of other kinds of content that customers can share with friends or acquaintances via social media. They can share their financial goals or saving accomplishments. When customers share the information, the pictures of their lifestyles and nature become clearer. The groups of customers are showing what are their interests and goals. This will result in the creation of the personalized products that better impress customers by, for example, providing them with the exact information that they need and recommending better products for them.

Gamification creates interesting reliability

Surely gamification is a tool that creates the senses of participation among users. Fun is included to prevent users from being bored and make them feel that they are playing games. Financial products can use various forms of gamification instead of being confined to a single form. Different forms of gamification can be combined to create a diversity of methods to present knowledge, understanding and the reliability of financial products in simplified versions.

Money management apps can be designed to begin with quizzes to acquire the basic information of customers including their age, education, careers, interests and lifestyles. Then they can pose questions about spending habits and financial goals to gain deeper knowledge about customers’ demand. All the information will show individuals’ financial personas.

 A quiz to find financial personas should consist of 3 main elements.

1. Financial Risk

This is to assess the degree of financial risks that each customer can take. The degrees range from low to low/medium, medium/high, high and very high.

2. Financial Decision

It can be a prompt decision of, for example, a customer who wants a product and buys it right away. Or it can be a prudent decision of a customer who ponders over a product before buying it.

3. Financial Management

Financial management is also necessary. It can be divided broadly into short-term financial plans for implementation within 1 year, medium-term plans for implementation in 3-7 years and long-term plans for implementation in 7 years or more.

Apart from being applied to design quizzes, gamification can also include the incentives that encourage users to do some activities on platforms. For example, users are asked to set the goals of their savings in 1, 3 or 5 years and plan the use of the savings. The users who complete the steps will receive badges, medals or scores which they can use to claim prizes. This lets users enjoy games and returns the favor to users by offering them privileges.

In the new world where consumers have considerable and various choices, the developers of complicated financial products must not only try to persuade customers with outstanding applications and users’ benefits but also consider customers’ feelings to prevent them from looking to competitors. This can be achieved with the organized strategies that will lead to the design of the best and most impressive online experiences for customers.

The post Financial Products for Younger People Must Be Personalized and Joyful appeared first on Bluebik.

Key Takeaways: 

• AI as a Transformative Force: AI is reshaping the financial sector by driving digital transactions and enhancing business models. 

• Shift to Customer-Centric Models: Financial institutions are moving from transaction-based to relationship-based models, using AI to personalize services. 

• AI-Driven Innovation: New business models like peer-to-peer lending and DeFi are emerging, offering greater customer control and transparency. 

• Improved Efficiency & Security: AI enables real-time payments, fraud detection, and biometric authentication, enhancing security and operational efficiency. 

• Operational Transformation: AI and cloud solutions streamline operations, reduce costs, and enable scalable services. 

• Compliance & Ethics: Financial institutions must comply with evolving regulations like GDPR, CCPA, and PDPA while addressing ethical AI concerns. 

• Future of AI and Blockchain: AI and blockchain will drive more efficient, transparent ecosystems. Digital inclusion and privacy remain top priorities. 

From Transactions to Relationships: The New Financial Paradigm 

Market leaders are capitalizing on this shift. JPMorgan Chase and Bank of America deploy AI algorithms that detect suspicious patterns in milliseconds, significantly enhancing cybersecurity. Meanwhile, digital challengers like Revolut leverage machine learning for hyper-personalized financial advice, transforming the competitive landscape. 

This evolution allows financial institutions to strengthen security, automate complex operations, and deliver customized services at a previously unattainable scale. 

Breaking Traditional Boundaries with Data-Driven Models 

Strategic AI integration is redefining financial service architectures. Real-time customer behavior analysis enables personalized loan structures and investment strategies tailored to individual risk profiles. 

Innovative models like peer-to-peer lending and decentralized finance (DeFi) platforms offer transparency and customer control. Financial firms are transitioning from transaction-centric to relationship-centric models, unlocking revenue streams via subscriptions, AI-based planning tools, and advanced analytics.

AI-Powered Cashless Finance: A Technological Transformation in Motion

1. Exponential Growth of Digital Transactions 

AI helps financial institutions manage rising transaction volumes and complexity. Integration of real-time systems like FedNow and UPI improves operational efficiency, lowers costs, and strengthens digital infrastructure. 

2. AI-Driven Real-Time Payments: Speed, Security, and Efficiency 

AI-powered payment rails replace outdated systems with faster, safer, real-time transactions. These innovations reduce operational costs while enhancing customer service. 

3. Biometric & AI-Powered Authentication: Securing the Future of Payments 

Biometric and AI-based authentication systems protect data and transactions while enabling secure, seamless customer experiences—critical in the age of digital finance. 

How to Address the Challenges and Risks of AI Implementation in Finance and Banking

✅ Ensure Robust Data Protection: Implement end-to-end encryption, multi-factor authentication, and data masking. Regular audits and privacy-preserving models like differential privacy protect sensitive data. 

✅ Mitigate Algorithmic Bias: Train AI on diverse datasets, run bias audits, and maintain transparency in AI-driven decisions to build trust. 

✅ Address Workforce Displacement with Reskilling: Develop programs to upskill employees for AI-driven roles—data scientists, trainers, cybersecurity experts—promoting collaboration over automation. 

✅ Stay Compliant with Regulatory Standards: Implement governance frameworks ensuring AI meets regulations (GDPR, CCPA) and embed explainability tools for transparency and regulatory reporting. 

✅ Improve AI Interpretability: Use XAI techniques to make AI decisions transparent and reviewable, increasing customer trust and compliance. 

✅ Strengthen Cybersecurity: Deploy AI-driven anomaly detection, perform penetration testing, and maintain incident response plans to protect against breaches. 

The Future Horizon: Integration and Inclusion 

AI and blockchain convergence will reshape finance, offering transparent, efficient ecosystems. However, leaders must prioritize digital inclusion and data privacy to ensure equitable access. 

In this new landscape, AI adoption is not optional—it is the path to sustainable competitive advantage. 

Bluebik Group’s Commitment 

Bluebik Group specializes in AI-driven enterprise transformation—combining strategic insight with cutting-edge technology to empower financial institutions for the digital future. 

The future of finance is AI-driven, hyper-personalized, and fully cashless. 

🚀 Contact Bluebik Group today to unlock the power of AI in your enterprise transformation strategy. 

 📧 hello@bluebik.com | ☎ 02-636-7011 

The post AI-Powered Cashless Revolution: Reinventing Finance through Enterprise Transformation  appeared first on Bluebik.

• Revenue Growth: Turn insights into profitable products for partners and clients. 

• Customer Engagement: Data-driven personalization drives loyalty and retention. 

• Competitive Advantage: Institutions that prioritize data monetization stay ahead of disruptors. 

In a fast-changing landscape and competition intensifies, monetizing data is no longer optional—it is a necessity. 

From Insight to Impact 

The financial sector is evolving rapidly, driven by digitalization and fierce competition. At the center of this transformation is data monetization, a powerful tool to generate growth and redefine customer experiences. 

While financial institutions generate vast amounts of data daily, the value lies in turning raw data into actionable intelligence. According to the World Bank’s 2024 Global Economic Report, institutions that prioritize data monetization achieve 1.5x faster revenue growth and greater efficiency than their peers. 

The Strategic Case for Data Monetization 

1. Unlocking New Value Amidst Shrinking Margins 

With shrinking net interest margins—declining by an average of 12% over the past five years (IMF Financial Stability Report, 2023)—financial institutions are under pressure to identify alternative revenue streams. Data monetization presents a lucrative opportunity. 

For example, a leading Asian bank generated $15 million annually by offering anonymized consumer spending insights to retail and government partners (Statista, 2023). 

2. The Shift to Hyper-Personalized Services 

According to Statista (2023), 78% of consumers prefer banks that deliver personalized financial solutions. Leveraging behavioral data and AI enables banks to tailor products and services to individual preferences, driving customer satisfaction and retention. 

3. Staying Ahead of Fintechs 

Global fintech investment reached $180 billion in 2023 (OECD, 2023), intensifying competition in the financial sector. Traditional banks must leverage their rich data ecosystems to remain relevant, outpace disruptors, and innovate faster. 

The 5-Stage Framework for Data Monetization 

Bluebik emphasizes that achieving success in data monetization requires a structured framework that turns raw data into actionable insights and measurable business impact. 

1. Foundation: Build a Unified Data Ecosystem  

 The foundation for data monetization is a centralized and secure data infrastructure. 

• Key Actions:  

• Break down silos to integrate data into a single source of truth. 

• Ensure data accuracy, quality, and integrity through governance frameworks. 

• Comply with Thailand’s Personal Data Protection Act (PDPA) to protect customer privacy. 

2. Analytics: Extract Value from Data 

 Advanced analytics transforms raw data into actionable insights that drive revenue and efficiency. 

• Key Actions:  

• Use predictive analytics to anticipate customer needs and risks. 

• Enable real-time data processing for fraud detection and customer engagement. 

• Using Agentic AI to develop automated financial advisory models based on marketing data and customer behavior to create hyper-personalized services. 

3. Monetization Models: Choose the Right Approach 

Banks must identify monetization strategies aligned with their objectives. 

• Direct Monetization: 

• Sell anonymized insights to ecosystem partners like insurers, retailers, or government agencies. 

• Example: A European bank generated over $12 million annually by providing subscription-based data analytics (Statista, 2024). 

• Indirect Monetization: 

• Use data to enhance internal processes, improve customer retention, and reduce costs. 

4. Execution: Implement Scalable Use Cases 

Deploy practical, high-impact data monetization use cases with measurable ROI. 

• Use Case Examples:  

• Fraud Detection: AI-powered tools reduce fraud-related losses by up to 40% (Forrester, 2023). 

• Personalized Products: Tailor savings plans or loans to individual customer profiles. 

• Operational Efficiency: Automate regulatory compliance and streamline approvals. 

5. Continuous Optimization: Monitor and Scale 

Ongoing performance measurement and scalability are critical for long-term success. 

• Key Actions:  

• Monitor KPIs such as revenue growth, cost savings, and customer retention. 

• Adapt to regulatory changes and market shifts. 

• Scale proven use cases across departments or regions. 

The Impact of Data Monetization on Financial Services 

1. Fraud Prevention and Detection 

Fraudulent activities remain one of the biggest risks for financial institutions. Advanced AI and machine learning systems analyze large datasets in real-time to identify unusual patterns and flag potentially fraudulent transactions. 

• How it works: AI models compare transactional data against historical trends to detect deviations, such as rapid purchases across multiple locations or inconsistencies in account activity. 

• Impact: According to Forrester Research (2023), AI-enabled systems have reduced fraud losses by up to 40%, minimizing false positives while improving operational efficiency. 

• Example: A European bank implemented AI-driven fraud monitoring tools, reducing fraud incidents by 35% within the first year and lowering operational costs by 25% through automation of manual fraud review processes. 

2. Hyper-Personalized Financial Products 

Personalization is no longer a “nice-to-have” but a critical differentiator in banking. Hyper-personalization leverages behavioral data, spending habits, and life-stage indicators to create tailored financial products. 

• How it works: Banks use AI-powered customer segmentation to analyze individual spending behaviors, credit histories, and savings patterns to recommend or customize products like loans, investment portfolios, or credit cards. 

• Impact: Statista (2024) reports that tailored financial products increase customer retention by 30%, as customers feel more aligned with their financial institution’s offerings. 

• Example: A Southeast Asian bank launched personalized credit card offers based on spending patterns, resulting in a 20% boost in cross-selling rates and a 15% increase in active card usage within six months. 

3. Embedded Finance in E-Commerce 

Embedded finance integrates banking services seamlessly into non-financial platforms like e-commerce marketplaces, ride-hailing apps, or travel booking websites. This approach eliminates friction in the customer journey and extends financial services beyond traditional banking channels. 

• How it works: APIs and AI enable banks to offer services like instant credit approvals, buy-now-pay-later (BNPL) options, and embedded payments during the e-commerce checkout process. 

• Impact: Embedded finance is projected to drive $230 billion in new revenue opportunities globally by 2028, according to Juniper Research (2023). 

• Example: A Thai fintech integrated embedded finance into a popular e-commerce app, allowing instant loan approvals for large purchases. This led to a 25% increase in transaction sizes on the platform and expanded the bank’s reach to younger, tech-savvy customers. 

4. Predictive Risk Analytics 

Predictive analytics helps financial institutions proactively manage risks such as credit defaults, market volatility, or regulatory breaches. By analyzing historical and real-time data, predictive models generate early warnings for potential risks. 

• How it works: AI models evaluate credit histories, market trends, and external factors (e.g., economic forecasts) to predict default probabilities or market downturns. 

• Impact: According to the World Bank (2024 Financial Stability Review), predictive analytics reduces credit losses by up to 25% and enables faster decision-making in volatile environments. 

• Example: A leading bank in Thailand used predictive models to identify customers at risk of defaulting on loans. By offering preemptive restructuring options, they reduced loan defaults by 15% and improved repayment rates by 20%. 

5. Strategic Partnerships with Ecosystem Players 

Data monetization extends beyond internal operations. By anonymizing and aggregating insights, banks can create valuable data products for ecosystem partners such as insurers, retailers, and even government agencies. 

• How it works: Insights derived from consumer spending patterns, credit trends, or regional economic activity are packaged as products for subscription-based analytics platforms. 

• Impact: These partnerships not only generate new revenue streams but also strengthen relationships with key stakeholders. For example, insurers can use bank insights to fine-tune their premium pricing models. 

• Example: In 2023, JPMorgan Chase partnered with Airbnb to analyze anonymized transaction data, helping Airbnb refine its pricing algorithms and identify new market opportunities. By leveraging spending patterns and regional economic trends, Airbnb improved its dynamic pricing model, leading to a 5% increase in booking revenue. Meanwhile, JPMorgan expanded its data-driven services, strengthening its role as a financial insights provider. (JPMorgan Chase Data & Analytics Initiatives (2023) (Check JPMorgan Chase’s newsroom for related reports.)) 

Bluebik’s Expertise: Unlocking the Full Value of Data 

At Bluebik, we specialize in enabling financial institutions to unlock the full potential of their data with a strategic approach: 

✅ Strategic Planning & PMO: Align data initiatives with business goals through structured planning, governance, and execution excellence. 

✅ Unified Data Ecosystems: Break down silos and centralize data for actionable insights. 

✅ AI-Powered Analytics: From fraud detection to customer personalization, we implement advanced analytics to drive growth. 

✅ Compliance-First Strategies: Ensure adherence to regulatory frameworks, including PDPA and other local requirements. 

✅ End-to-End Monetization Solutions: Develop scalable models for direct and indirect monetization tailored to your business objectives. 

Data monetization is no longer optional—it is a strategic imperative. 

📩 Contact us today to explore tailored strategies that drive measurable results for your organization. 

 ✉ hello@bluebik.com  

☎ 02-636-7011 

The post From Insight to Impact: How Data Monetization Reshapes the Financial Sector  appeared first on Bluebik.

Digitizing Work Processes for Starters

Banking business is considered to involve a complicated work process with large documentation. When entering the digital world, not only do we have to turn paperless, but we also need to adjust our work processes such that everything runs smoothly, and can be managed automatically within a short period of time with the minimal number of procedures required as everything goes online.  One example about a first step banks took in digitizing operations was the implementation of Internet Banking. Many applications have been developed to enable the customers to do transactions on their smartphones conveniently, as can be seen today. Digitizing not only helps reduce the complicated process, it also provides Data in the digital form that can be further used or applied more easily.

Once Consumers Have Fully Stepped into the Digital World

One of the technological developments implemented by banks in the earlier period was the electronic payment system called PromptPay, by which the transferor can transfer money to the recipient’s bank account number tied to their telephone number, helping reduce the difficulty in remembering the recipient’s bank account number. Nowadays, a growing number of PromptPay users can be seen and people are less worried about doing transactions via the digital system. Over the past 10 years, various FinTech firms have offered new technologies to the financial industry with the clear trend of increased users, such as e-wallet, cryptocurrency, or AI-based credit lending, which is based on the analysis of customers’ personal behaviors (personalization).    At this moment, banks can no longer give an excuse for not adjusting themselves, although there are some customers who still want to use services at physical bank branches. Any bank that still bases its success on this old feature and cannot develop a new system or feature or devise a new strategy in response to the customers’ changing behaviors is likely to stumble or be forced to lose its market share to other FinTech firms in the end.

Tech Company, A New Player to be Watched

Another challenge facing the banking industry is the need to pay attention to the big players or experts in using data and technologies like Tech Companies. Currently, many tech companies are becoming players in the financial industry in the category of Non-Bank. For example, Apple has developed a payment solution called Apple Pay or a credit card called Apple Card which has gained attention from numerous users. Another example is the debut of Ant Financial by Alibaba to expand footprints in the financial industry, allowing the granting of credit facilities without the presence of loan officers by adopting Big Data and AI to run data and assess the risks of customers before granting loans. In the past, banks gained advantages from their large customer bases, but nowadays Tech Firms also have large pools of customers and are gaining advantages in terms of the ability to apply technologies faster. It is therefore not hard for those firms to steal market share from the banks. In the future, we will be likely to see a trend of a new, small-scale bank that starts its business on a full-scale digital banking platform.

How can banks adapt themselves?

The answer is that if banks want to survive this era, they must take serious actions and proactively adopt technologies and apply big data to achieve greater efficiency. This is because banks are organizations that store a large number of data of customers which can be used to create value added. Also, the banks must seek new sources of information that can add value to the business, since the use of traditional data such as transaction data may no longer be enough to create any difference to the organization. In addition, the banks must not ignore the platforms that cover the different lifestyles in order to collect data of the customers’ behaviors. There are 4 primary suggestions as follows:

1. Identifying business issues based on “pain points” derived from the traditional ways of work: Businesses may identify current business issues that can be solved by the application of Big Data, Machine Learning, and AI technologies to achieve greater efficiency or work solutions. For instance, AI can be used to analyze and predict trends of increases of interest rates based on communications from the central bank; this allows banks to plan or manage their interest rate policies in the most efficient manner. Another example is the use of AI together with Geo-Spatial Analytics for planning of locations of ATMs, and closures and mergers of branches in an efficient manner.

2.Identifying new ways to create value added: Businesses can increase existing income or generate new sources of income by way of targeted marketing; customer segmentation and selection of the commensurate products; development of new products from insights gained from data such as new types of credit cards, loans, or deposits that better respond to market needs; customer interactions through personalization; and data monetization through, for example, creation of data products from financial transactions in which customer behaviors have been analyzed.

3. Strengthening alliance: This is another key mechanism to be readied for an open banking platform. What the banks need to prepare are:

(1) APIs to connect to applications and functions inside and outside of the business and the maintenance of API security;

(2) Creation of an eco-system with FinTech or business allies to create new innovations that lead to mutual business opportunities through an API platform; and

(3) Joint creation of services or products between allies as a key factor for expanding the scope of services to cover a wider scale of customers. This helps collect more information and leads to the development of a business model towards an open banking platform for further connection with data or functions of other retail service providers in the future through Open API.

4. Taking into consideration Data Governance and other applicable laws: For example, data security, data privacy, and rights of data owners shall be taken into consideration to ensure compliance with the Personal Data Protection Act (PDPA). Also, the integrity and quality of data shall be maintained to ensure the benefits directly gained from the further analysis of the data.

Regardless of the size of a bank or no matter how large its market share or customer base, the coming technologies can always be disrupting the existing work systems or strategies. What matters most in the era of digital disruption is how businesses can make best use of available data so that they can adapt themselves to changes and best suit their customer needs. Don’t think that a giant cannot fall. The bigger they are, the harder they fall (if they do not adjust themselves.)

The post Data-driven Banking: Big Data Readied to Add Value to Banks appeared first on Bluebik.

Traditional competition has been all about product features and costs with stiff competition. The playing field has become more difficult for players to beat their opponents. Also, a growing number of startups with high technology solutions have entered the playing field and posed challenges for the existing players. Therefore, the competition game in the digital world is no longer reliant upon old-school straightforward strategies. Instead, businesses must understand what rules are available in the digital era. How the businesses can create competitive advantages based on such rules. One strategy that many businesses have started implementing is to integrate themselves as part of the “Digital Ecosystem”. It draws benefits from the alliances in such an ecosystem.

What is “Digital Ecosystem”?

First, we must understand consumers nowadays. They want to transact all kinds of business via online channels and use multiple services at the same time; as such, convenience and speed are what they need. Thus, to achieve a business success, a “Digital Ecosystem” must ensure the most comprehensive range and widest connectivity of services.

Put simply, Digital Ecosystem is a bridge between businesses and costumers by sharing digital properties for a mutually beneficial purpose, such as commercial gain, innovation or common interest. For example, “Lazada”, the well-known e-commerce platform, has be alliance with many businesses such as; banks – to offer additional payment options, logistics service providers – to provide speedy delivery services, or even retailers – to present a wide variety of products to its customers.

Many companies that have large customer bases, have acted as Digital Ecosystem centre such as “Line”, “Grab” and “WeChat”. They offer cross-border services with alliance to customers by using competitive advantages in terms of customer bases and technology strengths. Those companies have propelled themselves into becoming ecosystem hubs. One observation is that all these tech giants are international companies. However, banks in Thailand have driven “Digital Ecosystem” and have gained big benefits from it.

The embarkment of the Digital Ecosystem: When banks are increasingly keen on the provision of “Lifestyle Banking” services.

Over a few recent years, all industries have experienced the so called “Digital Disruption” phenomenon. It can be said that the most impacted industry is the financial business community. In the old days, banks were only places to deposit, withdraw or transfer funds. Nowadays, that is no longer the case. New forms of banking services have emerged, especially from rivals like “Fintech” firms. Currently, banking operators are trying to adjust themselves to provide more of “Lifestyle” services. This is the first step of preparing banks to play a major role in the creation of “Digital Ecosystem”. All businesses will have to approach banks in order to connect themselves with customers as the banks are considered the most accessible channel to the customers.

We can see that establishing a “Digital Ecosystem” requires a great degree of collaboration among different business sectors so as to provide wide-ranging services though a fully-integrated one-stop system. It is beyond question that almost all businesses have to engage with payment services. Hence, banking is considered a key piece of jigsaw in the Digital Ecosystem.

Why does banking become a key element in the Thai Digital Ecosystem?

Mr. Chalakorn Panyachom, Chief Digital TV Business Officer of Workpoint, stated interestingly that among the Top 5 applications on Appstore or Playstore in Thailand, the only Thai company apps are mobile banking apps. Also, mobile banking apps are those with highest downloads in the country for 10 consecutive years. This means that Thailand has a huge pool of digital banking customers, leading to a large customer database. In addition, the banking sector has seen operating profits at higher levels than other sectors; thus it is in a far better position to be pushed forward to build the Digital Ecosystem with its available funding resources for system development and sufficient database for analysis and development of new forms of products to satisfy customer needs.

Collaboration with alliances is key to the usage of the Digital Ecosystem.

It is widely known that banks are supervised by the Bank of Thailand and must strictly comply with specific rules. Sometimes, those rules pose restraints on the expanding role of the banks in the provision of new types of services because under such rules the banks’ ability to independently change their role and business model like other types of business is limited.

Hence, banks need to rely on the collaboration among different types of business in order to ensure diversified services and better satisfy customers. There are numerous examples reflecting the collaboration between the banking sector and other sectors in order to gain benefits from the Digital Ecosystem.

One example is the provision of non-banking services to customers through a mobile banking app, for instance; ticket booking, point accumulation under loyalty program, shopping through e-commerce platform, and etc. This collaborative effort benefits everyone. Consumers enjoy the convenience of using a one-stop service application. Businesses acquire additional customers from a large group of mobile banking app users at lower marketing costs by partnering with the banks instead of seeking new customers by themselves.

Another example is the provision of banking services through other businesses. For instance, banks partner with peers and convenience stores like 7-Eleven to provide money deposit and withdrawal services around the clock through the use of a mobile banking app at a convenience store. This is a big stepping stone for banks as they can increase more than 11,100 touch points nationwide without the need to invest in the construction of new branches. This is a true synergy that creates enormous benefits for the banks.

An additional interesting example is “Kasikorn Bank”, a major banking group and “Line”, a social media platform that using by more than 44 million people in Thailand. They form a new company namely “Kasikorn Line Co., Ltd.”  The company aimed to provide financial services that are simple and convenient. Examples of services include “digital lending” through the Line platform. This is going to be a new chapter in the history of bank loans. As a partnership, Kbank can access to a large pool of customer information and utilise such information to further personalise products and services to cater to customer needs.

“Bluebik” points out the trend of the banks unlocking their role to create the “Digital Platform.”

“Customers” are the most important asset in banking. To gain competitive advantages over competitors, each bank must establish its customer base to the greatest extent possible. At present, the strategy for contracting customers is not all about issuing financial products or promotion programs at lowest prices. In order to survive the competition, banks must develop platforms in order to provide customers with a full range of services.

As Bluebik working experience with several leading banks, banks rapidly adjust ther in order to keep up with customer needs in the digital age. Almost all banks in Thailand have tremendous amounts of digital investment. They focus on seeking new alliances in other business sectors to drive the efficient implementation and using of the Digital Ecosystem.

so as to provide customers with a full range of services to satisfy their needs.

Not only does the banking sector need to adjust themselves, other business sectors should also consider this opportunity. How to integrate products and services with “Digital Platform.”? Today, it is more and more challenging to compete against each other with the same old practices. Therefore, synergistic collaboration between businesses to create new added value would be a more sustainable solution.

References :
1. KBank & LINE Join Forces to Establish “KASIKORN LINE Co.,Ltd.”: https://kasikornbank.com/th/News/Pages/KASIKORN-LINE-Company-Limited.aspx

The post Borderless Competition Through Digital Ecosystem appeared first on Bluebik.

In the recent years, new electronic payment methods have been introduced to Thai society especially ‘PromptPay’. It is a National e-Payment scheme that allows people to attach their bank details to their ID cards or phone numbers for instantaneous interchange of money with zero transaction fees when compared to commercial banks. In the private sector, commercial banks have started allowing people to use pay their bills electronically with the help of QR codes and such other tools.  

Thais have started introducing electronic payment methods into their everyday lives; owing to various incentives presented by the government sector such as ‘PromptPay’. It is a National e-Payment scheme that allows people to attach their bank details to their ID cards or phone numbers for instantaneous interchange of money with zero transaction fees when compared to commercial banks. In the private sector, commercial banks have started allowing people to use pay their bills electronically with the help of QR codes and such other tools.  

According to the Bank of Thailand, the general landscape of commercial transactions in the recent few years has made a noticeable change towards the realm of electronic or Digital Payments. In the stretch of time between 2016 and 2018, the rate at which people conducted their transactions through mobile phones – whether they be for payments or simply money transfers, saw an average growth of 116% percent per year. This noticeable change was under the National e-payment Master plan devised by the Bank of Thailand, who put the PromptPay system in place and broadened the scope of usage for all types of payment cards. 

Statistics show that there has been an increase in the usage of e-Payments from 49 transactions/person/year in 2016 to 63 transactions/person/year in 2017, and up to 89 transactions/person/year in 2018 subsequently. Most of these Digital Payments were cash transactions, and this mode of Digital Payment service has shown steady growth of up to 83 percent. It is reported that there were as many as 3.205 million transactions made in 2016, which increased to 4.171 million in 2017, and shot up to 5.868 million transactions by the end of 2018, with Mobile Internet Banking showing an increase of 263 percent within the last 3 years. 

These numbers go to show that Thailand is heading towards a cashless society; one which will take its full form in 5 years. One of the most crucial benefits is that you will not need to use a card or a mobile application to complete your transactions anymore. This new method of payment that is making its presence known is called the “Biometric Payment” system (or “Bio-Payment” in short) which involves using a person’s physical features/characteristics to approve a financial transaction – such as their facial feature, finger prints, voice, retina, or blood sample etc. 

With the Bio-Payment method, a user will not have to remember their passwords, or carry physical devices such as mobile phones or tablets in order to carry out their financial transactions anymore. This will allow you to make your necessary payments with ease and simplicity in no time – thus proving itself to be more efficient and effective than any form of money interchange service you have ever used in the past. Nevertheless, it must also be understood that the user experience received might differ from one situation to another. For example: While fingerprint scanning is a well-known process for transaction approvals, it is also proven to have a 15 percent failure rate amongst users; leaving a portion of people with a lack of enthusiasm for this authorization method.

In order to make a comprehensive transition into a cashless society with the use of Bio-Payment, we will also need to address a few safety concerns that may arise. This can be a crucial matter because a person’s personal features may not always be a secret, and there can always be attempts to emulate their identifying characteristics in order to falsify transactions or to commit larceny at the expense of a user’s assets. Therefore, verifying a person’s true identity with the help of their identifying features should be done with the utmost care, and the retrieval and processing of a person’s biometric data from a database for a Bio-Payment transaction must also be done with measures taken to prevent technological and informational security mishap.

Information exchanged in a particular Bio-Payment transaction might not be a secret, but it is the type of information that depicts the physical characteristics of a person and therefore it must also be legally protected with adherence to laws regarding personal information. The European Union in 2012 has suggested that all Biometric information should be considered highly sensitive and treated with more caution than most forms of personal information.  

Therefore, for businesses to make the most resourceful and effective adaptation of this technology, they must form alliances with or invest in creating an organisation that deals directly with the process of Biometric Authentication to create a payment service that is ingenious and safety-ensured so as to be the leader in the field of Bio-payments – the form of service that will draw more and more customers into the banks. They will have to create and strengthen Consumer Biometric Authentication processes, organise an internal training program, and join hands with their alliances so as to move the bank forward in the new Digital Business Ecosystem. Along with that, they will need to develop and invest in the various departments that deal with Documentation and legalities, and Research and Development, so as to prime all units in the bank for any necessary changes that need to be made at a given time. 

Additional industry sectors, especially retailing, should also consider investing into Bio-Payment systems, so that when it has become fully immersed into the commercial segments of the market, they will be able to design a payment process that is fully aligned with the spending behavior of the consumers. Once they have a created such a seamless payment system of their own, they can enjoy business growth in the form of differentiation that offers an effective and novel experience for the users, reduced speed in transactions and payments, and an opportunity to curb their labor costs. 

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