Asian banking sector to benefit from technology boost

Big investments expected from Asian banks as sector looks to add value for tech savvy customers

Banks in the Asia Pacific region are expected to dedicate additional resources to broadening the range of services they offer their customers. With customers in Asia among the fastest adopters to technology, the region is already well positioned to introduce innovative new solutions.

According to predictions from analyst Ovum, retail banks in the Asia Pacific region are the most prolific spenders on IT, with a further 5.1% growth predicted for this year to US$118.6 billion. The region’s banks are aiming to enhance the service offered to their customers who are already quick on the uptake in terms of online banking, which is done increasingly via smartphone apps.

There’s also expected to be a drive towards banks offering mobile payment services to their business customers and partnerships are already being sought to build comprehensive systems that can facilitate such a service effectively. mPowa is a mobile payment service which has already signed a successful deal with First National Bank in South Africa and is now expanding into the Asia Pacific region to reach similar agreements.

mPowa works by inserting a credit card into a compact card reader, which then communicates with a mobile device via Bluetooth, enabling merchants to accept payments on the move. This type of service will boost productivity and convenience for businesses and also help to increase take up of smartphones created by the likes of Google, Apple and Nokia.

As well as the deal with First National Bank, mPowa has also recently signed a deal with Portugal Telecom – the largest deal of its kind in Europe. Both deals involve the white labelling of mPowa’s technology and device that will enable both companies to incorporate mobile payment into a wider suite of services.

As part of the company’s expansion into Asia, mPowa will be exhibiting at Cartes Asia in Hong Kong on 27-28 March. Cartes will bring together the leading companies from card manufacturing, payment, security, identification and mobility industries. mPowa will be among those showcasing their solutions to the 3,000 delegates from the industry.

Dan Wagner, CEO of mPowa, said, “We anticipate playing a significant role in the evolution of banking in the Asia Pacific region. Technology is already the beating heart of the banking sector here, which is why there are now more people accessing banking services via mobile phones and the internet than in branches or on the telephone. We will reach a stage very soon whereby services such as mobile payments will be inherent in the offering of every major bank and will no longer be seen as an add-on. The Asia Pacific region, particularly countries with fast economic growth such as China, India and Vietnam, will lead the way in this.”