Digital and real-time payments in Southeast Asia are gaining in popularity, as Singaporeans lead the way towards an increasingly cashless culture. But the question remains as to whether financial leaders are prepared for what this will mean for the way they operate in markets like Singapore.
With the global pandemic accelerating this uptake, the fall of ‘cash is king’ brings new challenges for financial institutions and their leaders.
No stranger to innovation, Singapore is the world’s third most cashless country according to a 2021 study from Money.co.uk, sitting just behind Hong Kong and Canada (2nd and 1st place respectively).
The convenience of going cashless means guaranteed insurance for stolen funds, a reduction in time spent managing money, and easy access to finances when travelling, all attractive options for Singapore's cosmopolitan population.
As digital identity becomes more ingrained into everyday life, and the way citizens shop becomes more streamlined, financial leaders are faced with increasing challenges to handle and manage customer data effectively and safely.
Acknowledging the dangers
Under pressure to protect citizens from hackers, scams, and data breaches, leaders need to put in place increasingly secure systems as criminals get smarter. With cybercrime accounting for 43% of all crime in Singapore last year, as everyday users shifted online to stay safe during the pandemic, the pressure on financial services is set to grow.
Given this uptake in cybercrime, implementing a more secure system is imperative to protecting users who cannot or do not know how to protect themselves.
ForgeRock’s 2021 consumer identity breach report found that unauthorised access through sharing or reusing passwords played a major role in one-third of all breaches, highlighting a greater need for education, or smarter systems being in place to protect everyday users.
With people moving online, round-the-clock access to financial data is becoming a priority. Services being taken down, even temporarily, can be very costly and may result in users searching for a more reliable option.
Beyond this, data breaches and security threats in a cashless society could mean nationwide economic consequences. Financial institutions will ultimately bear the brunt of this, meaning leaders need to act quickly.
For financial organisations operating in markets like Singapore, the response needs to be strong and fast to keep up with user needs and customer trends. Given Singapore’s strength in innovation as the ‘Silicon Valley of Asia’, businesses who do not adapt risk becoming dinosaurs within the sector and losing out to competing neo-finance options.
Investing in cybersecurity
The next step for leaders is to increase investments in security innovation to keep customer information and login details secure. Examples of this include using artificial intelligence (AI) to track and analyse for vulnerabilities, as well as implementing a Zero Trust network to improve security for consumers, the workforce, and IoT devices.
Removing the option of sharing passwords by implementing multi-factor authentication (MFA) or biometric authentication increases data protections and gives users a greater sense of security.
These diversified methods of logging into services have also paved the way for the implementation of passwordless methods of authentication, through which users can provide pin-protected external authenticator or biometrics that are native to devices like Touch ID.
In implementing systems that intuitively protect users in ways that are less reliant on traditional logins and passwords, decision-makers have a golden opportunity to forge a high level of trust with their customers, positioning themselves as industry leaders in financial security.
Key takeaways
Innovative investments like the above allow businesses to grow alongside their users. With the world moving towards a cashless environment, introducing smarter protections will be the bedrock to a thriving digital-led economy. Solutions must be able to protect, yes, but also adaptable to what the future holds, offering an increasingly cashless society a secure environment to thrive in.
With a renewed responsibility placed on the shoulders of business decision-makers, the impetus is on today’s leaders to look towards tomorrow’s solutions. Without rapid action, we leave the door open to the unknowns that come with change, something which the financial sector cannot afford to risk.
For financial institution leaders and decision-makers, the question remains – are you ready for the responsibility of a cashless society?
