Farhan Ahmad, the CEO of PayNet (Payments Network Malaysia), discussed the future of payments during a fireside chat at Money20/20 Asia in Bangkok. He emphasized the need for a strategic framework for dealing with bots as future customers instead of people. Financial services organizations, with years of experience in selling to people, will need to adapt to selling to bots in the future. Bots accessing services through APIs that bypass traditional channels like insurance company web pages and call centers will require financial services companies to develop new APIs tailored to the needs of bots.
Bots will have different preferences compared to traditional customers. They will not care about branding or marketing efforts such as commercials or sponsorships. Instead, they will focus on the quality of services, API availability, response times, and data accuracy. Security and privacy will also be crucial factors for bots, opting for secure channels and prioritizing privacy when sharing information. Financial companies will need to cater to these unique preferences to attract and retain bot customers in the future.
In a paper on artificial intelligence in financial advisory services, the authors highlight the role of bots in delivering advisory services typically provided by frontline employees. Bots in financial services will offer advice on financial planning, investments, and asset management, requiring them to operate within a regulatory framework and prioritize customer interests. The implications of using bots in retail financial services are significant, potentially leading to better financial decisions for customers based on data and analysis provided by bots.
Fintech investor Matt Harris from Bain Capital Ventures points out the potential threat posed by bots to traditional retail banks, with bots potentially recommending better financial products to customers based on data and comparisons. This poses a clear and present danger to the profit pools of retail banks, urging them to develop strategies to respond to the changing landscape of financial services. In the face of this disruption, developing long-term strategies that prioritize customer interests and leverage innovative technologies will be essential for the survival and growth of financial institutions.
Farhan stresses the importance of seeking insights from science fiction writers and historians when envisioning future strategies. Science fiction writers like Arthur C. Clarke have provided thought-provoking perspectives on the future, emphasizing a world where robots take over mundane tasks, allowing humans to engage in leisure activities. This vision of the future where automation leads to full unemployment highlights the need for organizations to adapt to technological advancements and prioritize innovation in their long-term strategies to stay relevant and competitive in the changing landscape of financial services.