In the Asia Pacific region, lending institutions face new risks and challenges in the digital age. They need to navigate the evolving digital landscape and effectively manage data-driven decisionmaking. Factors like evolving regulations, technological advancements, and changing consumer behaviours are driving continuous transformation in the industry.
However, many large financial institutions are slow to adapt, facing challenges in data management, outdated technology, and inefficient processes. Adopting data-driven strategies is crucial for remaining competitive, meeting customer expectations, increasing revenue, improving customer experience, reducing costs, and managing risk. Commercial banks and Fintechs face unique hurdles in adopting digital decision-making due to their established systems or legacy data limitations. Transitioning to data-driven decision-making is complex but important as technology evolves and disrupts traditional models. Lending institutions, including banks and Fintechs, must invest in digital decisionmaking to stay competitive.
This paper focuses on lending institutions’ digital transformation in Asia Pacific, exploring data utilisation for informed decision-making and risk management. Key takeaways include the impact of legacy technologies, leveraging various data sources, best practices for data quality and governance, the role of advanced analytics and AI, operationalising models, and empowering people with security, support, and training strategies.