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Future of Payments:Accelerating Innovationin Asia Pacific
Future of Payments Accelerating innovation in Asia PacificAccelerating innovationFor us at Citi, innovation isthe creation of somethingnew that offers value to bothour clients and the bank.This could be a product, asolution, a business model,a new market opportunityor a new perspective on afamiliar challenge.We take a multi-pronged approach toinnovation. Like Citi, our clients areglobal in their reach and ambition.This global perspective is echoed inour innovation approach. Establishedover a decade ago, our innovationlabs in Dublin, Singapore and NewYork, work closely with colleaguesin Markets and Citi Ventures FintechInvesting to identify new partnershipopportunities. In collaboration with ourclients and colleagues from across thebank, these innovation centers bringtogether diverse skills, perspectives andmindsets to harness our collective2strengths and global resources todeliver something unique that nosingle entity, business unit or functioncould have created individually. Weseek to address the implications of anincreasingly digital economy for ourclients, meet the demand for real-timetransactions and information, and helpclients to grasp the opportunities thatwill create future success.
Future of Payments Accelerating innovation in Asia PacificInnovativepartnershipsWe establish innovativepartnerships with a wide varietyof organizations, from newstartups to well-establishedfinancial technology (fintech) and‘bigtech’ firms, regulators, researchinstitutes, universities and schools.StartupsBringing together skills and perspectives fromoutside the bank enables us to look at problemsin new ways, leverage talent and knowledge,and create the solutions that will help shapeour clients’ business models and experienceof banking, and ultimately the societies andeconomies of the future.Whatever the type of organization, whetherfintech, regulator or educator, the mostvaluable and constructive partnershipsare those where each stakeholder bringscomplementary skills and expertise, and theaims are specific and definable. By sharingin the investment, whether financially orotherwise, whilst also sharing in the benefits,everyone is motivated to succeed.ClientsFintechfirmsResearchinstitutesCitiA cultureof innovationCreative and innovativethinking is a quality that isavailable and widespreadacross our organization,beyond our innovation team.EducationalinstitutionsRegulatorsThrough coaching, training andproactive engagement, we areencouraging our colleaguesfrom across the bank to identifyunarticulated unmet client needs,and leverage tools and solutionsacross the bank to meet clients’global challenges in a consistentand structured way.3Whatever the type oforganization, whetherfintech, regulator oreducator, the mostvaluable and constructivepartnerships are thosewhere each stakeholderbrings complementaryskills and expertise, andthe aims are specificand definable.
Future of Payments Accelerating innovation in Asia PacificCo-creation with clients andecosystem partnersThe value of our ecosystempartnerships would belimited without the proactiveinvolvement of our clients,bringing their hopes, fears,strategies and vision.We invite our clients to co-createwith us, sharing in our partnerships,exploring emerging technologiesand embracing our culture ofinnovation. Clients across industriesand geographies are keen to partnerand co-create with the bank and ourecosystem partners in a number ofways. Some of these include:We invite our clientsto co-create withus, sharing in ourpartnerships, exploringemerging technologiesand embracing ourculture of innovation.Understanding andharnessing trendsAddressing sector specificbusiness modelsClients are interested in exploring hownew and emerging trends relate tothem, and how they can leverage themmost effectively, such as machine-tomachine payments, corporate digitalidentity and the current and futureconcept of customer experience.Clients are looking for ways to shapeand transform their business models,such as insurance and other nonbank financial institutions as theyadapt to new consumer and businessenvironments.Exploring emergingtechnologiesClients are particularly keen to exploreopportunities for further digitizationand automation, particularly since thestart of the COVID-19 crisis. Together,we are looking at how artificialintelligence (AI) and machine learning(ML), cloud computing, distributedledger technologies (DLT) or blockchainand application programming interfaces(APIs) can address some of our clients’major challenges and opportunities.4Reshaping supply chainsFacilitating trade and boosting supplychain resilience and versatility is apriority across many industries, withinnovation playing a major role inreducing friction and accelerating theflow of goods, services and cash.ConnectivityTechnologies such as APIs aretransforming the way that our clientscommunicate with their ecosystempartners, from the bank through totheir customers. Co-creation projectsare therefore exploring means to useconnectivity to enhance and integratethe customer experience.
AFuture of Payments Accelerating innovation in Asia PacificDriving payment innovations in Citi:Citi Payment Outlier Detection1In 2019, Citi launched Citi Payment Outlier Detection service,a solution for accounts payable in 90 countries worldwide.Developed in partnership between Citi’s Innovation Lab andfintech partners, this solution uses advanced analytics, AI andML to proactively identify and flag up payment anomalies thatdo not correspond with a client’s previous patterns.Dynamic QR Codes for Mobile Payments2We continue to build and roll out fintech partnerships across theregion to enable clients across a range of industries to integratedynamic QR codes into their online channels for mobilepayments. This streamlines the payment process for customers,improving their experience and reducing failed transactions,whilst ensuring rapid collection and rich data for the company.Mobile payments for corporate and public sector3Many of the innovations around mobile and real-time paymentshave focused on incoming payments from customers, with a viewto enhancing customer experience and accelerating collections.Many companies and public sector entities are seeking toleverage the same convenience, control to make payments tomobile wallets, such as clients, consumers and contractors.Sandboxes as enablers for accelerating innovation4Sandboxes are an innovative way to enable banks to connect withFinTechs and validate their solutions with a swift turnaround.To foster collaboration between FIs and FinTechs, MAS hasdeveloped the API Exchange (“APIX”), a FinTech marketplaceand sandbox to facilitate experiments. During Singapore FinTechFestival in 2019, Citi was been invited to test the platformcapability. Since then, Citi has been conducting experiments on avariety of use cases in partnership with FinTechs spread globallyand on the APIX platform. This allows us to test new valuepropositions rapidly, with lower cost and risk!5
Future of Payments Accelerating innovation in Asia PacificLooking aheadToday, our Singaporeinnovation lab canconvene a series of cocreation sessions wherethe innovation teamfacilitates the session tounearth key challenges,define opportunities andexplore solution ideaswhich are then takento a proof-of-conceptdevelopment andvalidation phase.Our innovation priority is toco-create with our clients andpartners to help define thenew business models for apost-COVID 19 environment.Digitization and virtualization havebecome central to these businessmodels, but has also reshaped ourapproach to innovation. Today, ourSingapore innovation lab can convenea series of virtual co-creation sessionswhich may include a regulator in Asia, aFinTech in Africa, a Payments expert inour New York Office and our innovationteam in Singapore, replacing hard-toorganize, costly multi-day workshops.This makes us nimble, flexible andhighly responsive to the changing6environment in which both the bankand our clients operate, recognizing thenew business and consumer dynamicsthat will reshape how we think, act andinnovate in the future.Rahul O’VermaHead of Innovation, APACClient Co-creation Lead, GlobalTreasury and Trade Solutions,Citi
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Future of Payments Accelerating innovation in Asia Pacific Looking ahead Our innovation priority is to co-create with our clients and partners to help define the new business models for a post-COVID 19 environment. Digitization and virtualization have become central to these business models, but has also reshaped our approach to innovation.
