How can data empower next generation

FinTech and eCommerce? LSCM Logistics Summit 2016 30 Sep 2016

20-50 hours online weekly

15-24 years old spend

Source: Censtad Dept

51% Of our

How to better inform decision-making and building customer relationship?

Lending Payments/billing Personal finance / wealth management Money transfer Blockchain/digital currencies Institutional tech Equity crowdfunding InsurTech

FinTech’s definition continues to evolve Technology continue advancing the banking, financial services and insurance sectors

Big data: using structured and unstructured data in innovative ways to promote efficiency, productivity and to develop new product offerings in a more meaningful way.

Financial sector deal with massive data on daily basis, but navigating them is a huge challenge

◇Legacy systems and need to address cost

◇Organisation size ◇Hard to discover insights in massive amount of data

Whereas FinTech companies are thriving by being…

1. Nimble: quickly respond to customer needs 2. Focused: spotting gaps in the market 3. Data-driven and

Innovation in financial services highly focused financial-services applications, often more effective and less expensive than traditional companies e.g. insurance

Mobile-friendly, low cost robo-advisors provide better defined savings solutions on the basis of goals and risk appetite

◇modeling and forecasting

e.g. machine intelligence and analytics is used to assess the impact of more than 2,600 variables on each business unit of an FI.

◇identity validation (AML, KYC) e.g. enabling access to information collected in 50 countries from a range of sources; biometric validation technology;

◇real-time monitoring and behavioral analytics

E.g. automates shareholder disclosures and flags potential problems

RegTech potential: lowering compliance cost for financial institutions and regulators alike

What do these innovations have in common? • Intuitive & accessible user interfaces • User-friendly business models • Greater transparency • Data-driven insights

From BIG data to SMART data with AI and machine learning

focusing on meaningful pieces of information for more accurate decisions

UI that can read your mind to suggest or highlight

actions that are relevant will generate biggest value

Improve engagement and turning first time customers into repeat buyers.

45% of online shoppers are more likely to shop on a site that offers personalised recommendations Source: Invesp

Predictive Analytics for eCommerce Predictive Search Targeted Recommendations and Promotions Pricing Optimisation Fraud Management Inventory Management Business Intelligence

Hong Kong: huge potentials to succeed How to spur innovation and

help incumbents evolve?

Effective market competition,

ease of market entry

Sandbox: important first step

to more collaborative

approach to regulation

SVF licensing scheme: foster

certainty and consumer trust

Holistic policies is necessary

Policy

Creating market

demand

Talent Building / education

Making Data Work

User-centric mindset

Innovation-friendly

regulations Infrastructure

Privacy Security Trust

You can find me at Facebook: Charles Mok 莫乃光 Twitter @charlesmok charlesmok@charlesmok.hk www.charlesmok.hk