Presented on Nov 20, 2020 at Trust Officers Association of The Philippines (TOAP) Summit 2020

Mr.Abhijeet Singh Hazare
Head of Sales, Asia Pacific
3i Infotech Limited

E-mail: Abhijeet.singh@3i-infotech.com

Mr. Joydeep Roy
Partner PwC Global Health Insurance Leader
Country Leader India – Insurance Practice
PricewaterhouseCoopers Pvt Ltd, Mumbai

E-mail: Joydeep.k.roy@pwc.com

Mr.Vinay Tiwari
Subject Matter Expert – Wealth, Trust & Investment Banking
3i Infotech Limited

Email: vinay.tiwari@3i-infotech.com

Session Opening and Introduction by Mr. Abhijeet Singh Hazare, 3i Infotech Limited

Good Afternoon and Kumusta to the Leaders of the Trust Industry of the Philippines. Thank you for joining us today. I’m Abhijeet Singh, 3i Infotech’s Country Head for the Philippines and I also oversee business for rest of Asia Pacific region for Financial Services vertical. First let me send my best wishes to you and your family for safety and good health during these unprecedented times.

Creating a sense of stability and security for my family is certainly at the top of my agenda and I suspect it is yours as well. As you deal with this situation on a personal level, I understand that you are also encountering professional challenges not the least of which is the impact of remote working on your people and on the processes that drive your business.

3i Infotech is a global technology solutions company focused on providing innovative and cutting-edge software technology platforms for Banking, Trusts, Insurance and Financial Services Industry. We work with over 1200+ customers in over 50 plus countries, have over 5500 highly skilled workforce, revenue of USD 161 Million, 31 offices and 9 global delivery centres. We have local presence in the Philippines with our local workforce supporting existing Philippines clients in Banking, Insurance and Financial Services sector.

We have partnered with PWC to help BFSI customers globally in their quest of staying ahead of competition and innovation curve.

Our today’s session on “Preparing for the New- Normal (Stabilizing and unlocking new growth opportunities)” will be led by two eminent speakers who will bring valuable insights on how BFSI sector is coping with current pandemic crisis and getting ready for the new normal.

Let me welcome our first speaker Mr Joydeep Roy from PWC. Joydeep leads all aspects of Health Insurance practice globally. Till recently he was the Global Digital Assets Leader. In addition, he also heads the Insurance Practice of PwC in India across all Lines of Business and Services of PwC. Joydeep Roy has three decades of experience behind him comprising of Consumer Goods, Technology, Banking, Life Insurance, General Insurance and Consulting, along with Board positions in several organizations.

Insights by Mr Joydeep Roy of PWC on ‘Industry & Technology Trends observed globally during the COVID-19 scourge and guidance on how Trust Industry can be prepared for the New Normal.

Good afternoon Ladies and Gentleman and the captains of the Trust Industry of Philippines. It is my privilege and entirely my pleasure to be with you today in the Trust Summit 2020. My Name is Joydeep Roy and I am a partner in PWC, I do take care of the Health Insurance consulting globally and also the insurance consulting in the entirety in India and Bangladesh, part of the Financial services team.

Any meeting nowadays centres around the impact of Covid -19 pandemic as well as the Post Covid new reality, either new normal or new abnormal. So, while it is pre-occupying everybody’s mind, it is important to realize that the world sure has changed and is going to change further with more and more digitalization, capital focus, regulations and scrutiny. But it is not the pandemic alone which is responsible for these changes.

Many of the trends like digitization, mobility, hyper mobility, transacting remotely, the entire payment revolution, social media and the connection that it has created remotely which infact has aided social distancing, so much of environmental issues, capital scarcity, the geopolitical tensions which lead to nationalizations, localizations.

All these increased regulatory scrutiny and supervision, increase of longevity in many countries and many jurisdictions without adequate pension support, employment types changing with the emergence of gig-economy and millennial, skill gaps coming along with it – all these issues have been there developing rapidly over the last two decades. What the pandemic has done is that it has accelerated the action and reaction to these.

We dint have time to sit back and take strong notice of these, companies have rushed in first in their earlier months of the pandemic to do repair of their business which was important.

Having done the repair by looking at flexitime, Working-From-Home technology, social distancing, sanitization as well as making sure people can continue with as much of their businesses, it is important that everybody then tries to rethink their businesses, rethink their business modes, rethink their customer models and finally if required reconfigure the entire thing to suit the future, the world that we expect to emerge after this entire abnormality settles down into a new normal.

There is evidence of repeated downward correction of GDP forecast over the last few months across Europe, Americas, Asia, and Africa. Many scenarios have been talked off like ‘L-Shaped, V-Shaped, U-Shaped, but whatever will be the shape, the recovery time is the most important. It’s not the shape but the time taken for the economies to come back on track.

With the rising levels of packages which governments are dolling out while that is going as incentive and a fillip to industry and employment, public debt is also increasing and therefore that is going to add to the problem of economy. In some countries the packages are reaching to nearly 50% of their economy size. Corporate defaults can happen which can further weaken the economies. GDP growth contraction can be felt everywhere. Some industries have of course been impacted more like transportation, hospitality, travel, automotive, there are non-food consumer business, the traditional entertainment, media, manufacturing, chemicals, energy, freight, these are all facing crisis.

However, there are some industries like Healthcare, Pharma, Technology software, Agriculture, Life-sciences, Consumer essential goods, Food which have seen on the other hand an unprecedented growth because they have gone into supplant the luxury spends or the transportation spends and that’s where people have gotten down to.

Now the trend is not going to suddenly reverse back, certain things are inexorable and these kind of movement towards online buying for example is going to stay.

Philippines is interestingly poised, it has a sizable population, large English-speaking ability, large penetration of internet, smart phone and mobile banking – very dynamic for being the outsourcing capital of the world. Internet and smart phones both have penetrated more than 65% i.e. two thirds of the population. But the low penetration of overall banking, especially lower rent, insurance and credit card ownerships, these are going to come and bite a bit. And therefore, for economies to bounce back and to become more inclusive these have to be concentrated on and the government can take care of the bottom side, the top end has to be taken care off by the industry.

Sandwiched between two kinds of industries in Asia, highly developed like Singapore and emerging like Indonesia, Philippines has got an unenviable position for both opportunity aswell as threat. The new digital consumer is rising in Philippines, more than 37% from the total new customers are from digital customers that has got to provide the solution.

If you look at therefore the impact of Covid-19 in accelerating trends, you see it happening in financial stability, capital, and digitization, growth strategies being changing, operational efficiencies being really focused on, workforce-workplace changing beyond recognition, regulatory compliance really taking on a new meaning and the focus on Environmental, Social and Governance (ESG) from all companies.

The ESG guidelines are going to become very important. Relevance of business to society is going to comeback in the valuation of businesses too, so business of businesses is no longer going to be just the business, but business for businesses is going to be business for society.

Responsible approach will be most felt in the Assets & Wealth management business. Customer wellbeing is got to be absolutely paramount. While full digitization of service will happen, ethical aspects of investing must be looked into.

What is happening institutionally by the Private Equity’s (PE) for ESG that they are looking for their investee companies’ investments to look at the underlying companies. Infact the ethical funds have outperformed all others in this period, especially because they probably avoided energy.

However, customers will want same levels if not bigger levels of attention, higher quality of services and hyper personalization at scale. With all this technology and data that’s been moving all over, people are going to ask for payoffs for that. 

Clear trends that we are seeing in technology is that

  • Instead of closed solutions that are being given one-on-one, we see a shift towards platforms and ecosystems, aggregation of all services, cloud emerging as a preferred vehicle, consumer engagement and user adoption being key.
  • The king of all applications or businesses are going to be those who can get the consumers to be engaged and users to really adopt their services.
  • Distributed computing with complete API microservices architecture, coupled with full data privacy and ownership kind-of a governance model and strong cyber security.
  • In the US we seen massive platforms like Amazon, LinkedIn, Workday and alternate platforms that you see, PayPal is a platform. They all provide platforms for people to come and do business with. In China you see the Alibaba ecosystem – entire ecosystem of platforms. So, these are going to be important because people can get in, do what they want and get out.
  • Pay-for-use economy is going to be really something of future.
  • Cyber security has to be strong. Cyber security is like Physical security, you secure your entry, you secure your exit and you secure your crown jewels and the more you can do it, the more trust you can deliver to society for your services.
  • As companies are going to really deal with customer data, more and more hyper data with all the wearables billions of data points are coming in every minute and handling that and handling it responsibly and making sure that the people have the faith that the company is handing it responsibly is going to be the differentiator between most trusted companies and not so.
  • Innovations in technology like 5G which can take away some industries like arbitrage in trading or enable certain things like automated cars far far more.
  • Artificial intelligence taking away certain professions.
  • Digital currencies, especially now when people are getting more and more used to digital.
  • The lidar, mobility initiatives, health-tech, biotech, pharmacogenetics revolutionizing medicine usage and deep analytics and robotic process automation are going to be new things to look out for. They will give rise to new industries, they will give rise to new companies, and they will give rise to new strategic workforce challenges on top of what you already have. So, mobility continues to be a challenge. So, if you look at it, things like total rewards and how do you incentivise people for their best behaviour.
  • What about health and wellbeing of people? What about up skilling people digitally, not only digitally up skilling them but up skilling them on being digital, thinking digital, not just purely automating what they do. In a remote working situation engagement with the culture of the organization, worker protection, and actual workplace – how is it going to look like, same or different.

The PWC CEO Panel survey of summer 2020 brings out that

  • 78% of CEO’s believe that remote collaboration is here to stay
  • 76% of CEO’s believe that automation is here to stay
  • 68% of CEO’s believe that low density workplace is here to stay and
  • 54% of CEO’s believe that gig -economy is permanent

So-much-so that the workforce challenges are going to be really upon us if you have to take advantage of the new reality.

Environment, the move to Net-Zero to make sure that the emissions are reduced by more than 60, 70, 80, 90 percent in certain areas so that the temperature increase by year 2050 is less than 2%, because more than 2% is going to be too late. Therefore, a lot of companies are focusing on Net-zero strategy which is nothing but making sure that it’s a state in which all the activities in the value-chain if the company which includes the vendors and the suppliers and everyone don’t result in any impact on the climate from greenhouse gas emission point of view. This is not only for factories and chemical companies, it is also true for financial services, wealth management and asset management, because willingly we paper, equipment and we support so many of our suppliers.

So, climate risk and impact base lining is going to be important, net-zero strategy is going to be important and organization transformation to handle this is going to be important.

And at the end of its proper transparency and reporting at every stage of the way is going to make sure that the analysts, the PE’s, the governments, the regulators and the valuers look at the companies in that light. So geopolitical trends, trade routes and all of these will play a big part and ultimately banks will be challenged by Private Equity, Family Offices, governments and non-banking financial corporations as far as sources of funds are concerned.

The Fortune 100 today is composed of companies which were strangers in the year 2000. Who Knows, Fortune 100 in 2030 might be companies we haven’t yet heard of. Maybe the new economy will give rise to them.

Important thoughts for a Trust Industry and for a country like Philippines which is poised on a revolution of data, industry and success. With that I wish you all the best for your summit. Any questions can be directed to me on joydeep.k.roy@pwc.com

Thank you very much.

Thank you note to Joydeep and Introduction to next speaker – by Abhijeet Singh Hazare, 3i Infotech Limited

Thank you Joydeep for providing valuable guidance on how the new normal is shaping economies , BFSI sector and consumer behaviour.

Our Second Speaker today is Mr Vinay Tiwari from 3i Infotech. Vinay is Subject Matter Expert in Wealth, Trust and Investment Banking domain and leads the product development of MFund Plus – which is 3i Infotech’s flagship Wealth, Trust and Asset Management software platform.

Insights by Mr. Vinay Tiwari of 3i Infotech Limited on how companies globally are leveraging previous investments in digital capabilities to minimize the impact of this new environment and how collaborative technologies are shaping business in the New Normal.

Good Afternoon, Ladies and Gentlemen

My Name is Vinay Tiwari, I am Subject Matter Expert at 3i Infotech; I specialize in Technology Solutions for Wealth, Asset & Investment Management Industry. 

First of all, let me start by wishing you all a good health during this health emergency.

I would like to thank my colleague, Joydeep for sketching a beautiful picture of the New Normal, I would continue with the thread and talk about, what role does Technology play in this new environment.

The world has around us changed dramatically; be it our regular personal routine or our workplace. The pandemic has changed; the way we Operate, Communicate, or even Invest. Technology has really risen to the occasion and it is helping us, deal with this current phenomenon. As the road opens, it will further play a pivotal role in shaping up the New Normal.

When the Industry was struck with this pandemic and it was struggling to deal with it, we too decided to help our customers to respond to the challenges it posed, and also unlock new opportunities & gain competitive advantage.The end goals were simple;

  • Reduce People Dependency and equip them with tools to better manage their Investments and Operations
  • Find new & innovative, rather digital ways to reach out the customers, and
  • Bring down the cost of Service Delivery, Advise and Overall Operations

With these objective in mind, we focused on 4 core areas – Analysis, Advisory, Operation and Communication

The pandemic had rattled the Economy and Capital Markets worldwide. While it is stabilizing, it continues to remain volatile. Reduced Price Discovery, Liquidity Pressure and even a Cautious Investor has forced the Wealth & Asset Management Industry to reassess their Investment & Risk Management Operations.

With a right Technology Solution, you can quickly adapt and recalibrate various processes, from Valuation to Accounting or even your Policies & Control.

Today, we can analyze large volumes of market data, both structured and unstructured, coming in from diverse sources. The problem here is, these data are getting refreshed faster than before and it needs to be processed with the speed at which markets are moving; otherwise, your Fund Managers could be working at suboptimal level with half-baked information.

We use artificial Intelligence to process these data, In fact can cut down the time taken to gather, process and interpret these data and when combined with your Investor’s Needs &Preferences along with their behavior; we can estimate the potential impact on the fund flows, identify new investment opportunities and also tailor the advise based on the evolved needs of your customers.

Once you understand the changes in the Investment Need & Behavior of your investors. The next task ahead, is to generate highly personalized investment advice which is their risk appetite, investment horizon and liquidity requirements.

We have been recommending a use of Portfolio Optimization Models that produces highly Customized, Optimum and Bespoke portfolios, making each recommendation truly personalized. Our ‘out of the box’ algorithms, generate real-time investment & trade recommendations tailored to individual investors’ needs and preferences.

The ‘New Normal’ is not just about digital client experiences but also about delivering a highly personalized client experience using Artificial Intelligence and Machine Learning. Technology will rewrite how we build scale. Now, you can now penetrate deeper & acquire new customer segment or service a current customer base with same level of sophistication, but with limited human intervention and; most importantly at a fraction of the cost. The New Normal is all about the shift from Human-based, person-to-person advice to a Technology based, model driven advice.

Now we are taking it a step ahead. When we say we can automate Operations, we are primarily looking at making the investment process seamless and intuitive; especially considering that most of your employees may continue to work remotely.

While we have many use cases under this section, One key process which we would like to highlight is Customer Onboarding where we are helping our customer in different parts of the word, to take this process completely digital. The ‘Self Registration’ process can be supplemented with online validation from central databases and is also supplemented with features like Video KYC which is equipped with technologies like Natural Language Processing. This completely eliminates any physical interaction like submission of forms and documents to the Relation Manager or at your branches.

While sustaining business continuity, it’s important to capitalize on the longer-term opportunity the crisis presents and create a leaner, more agile and productive operating ecosystem, both within your organization and also in collaboration with your partners. We use Technology to seamlessly connect different internal and external systems and offer a straight through processing in the investment journey.

Infact we go beyond Investments; we also use Technology to comply with changing regulatory guidelines and support our customers with increased regulatory disclosures and fillings.

The New Normal requires Humans and Technology to work together in a fundamentally new relationship, not only in which machines take over routine manual tasks but also assist humans in better executing their roles. With this transformation, your dream of building highly productive & agile organization, cab be a reality.

The New Normal has taught us that personal service doesn’t have to be delivered in person.

Communication, is by far the most important aspect in this endeavor but it is remains largely incomplete and meaningless if you don’t work on the other 3 aspects I just spoke about.

The new normal resulted in a shift from ‘Branch First’ to ‘Digital First’ service delivery model. Going forward too, your customers would want to consume advice and interact with you in a whole new, often digital ways. We need Omni channel service delivery through Web and Mobile Interface offering workflow based, enriched user experience making the interaction simple, intuitive and self-directed.

In fact, You can take this experience to the next level with an AI powered Chabot and voice assistant & connect your customers using in-app video calling and co browsing facility; enabling you to offer a No contact Advisory. We have built beautiful, interactive and escalating interactions using our remote contact center platform. Your customers can initiate a conversation with a chatbot and can switchover, with ease; to an advisor connecting remotely through a Voice or Video Call. Your advisor can co browse & take your customers through their portfolio and help them with their investments by assisting in the order execution.

It happens on a secured medium with end to end encryption and while your customers are been serviced on such a digital platform; we can record all these conversations and analyze them using Artificial Intelligence & Machine Learning to generate meaningful insights. It can help you create events and reminders automatically, monitor sentiments and flag any distress, identify cross selling opportunities, recommends next best action and generate investment advice on the fly.

With all these 4 areas i.e. Analysis, Advisory, Operation and Communication using Technology, we can take your service delivery to a whole new level.

We are 3i Infotech, a global leader in Technology Solutions for Wealth, Asset & Investment Management industry, managing over 500 Bn $ of assets on our platform, and supporting marquee customers over 17 Countries. Our Technology Solutions can help you optimizes various processes, from Analysis to Operations & digitize your service channels to help you improve efficiency while sustaining the same quality of service. All of this can be achieved with a reduced dependencies on people & especially, their physical presence and at the same time we can bend the cost curve dramatically.

We would like to thank the TOAP Board &its members for giving us the opportunity to present our capabilities. We would love to further engage and jointly explore numerous possibilities. We at 3i Infotech, acutely watch these changing trends & tailor our systems to help you achieve a competitive advantage and a sustained business improvement, in such an evolving business landscape enabling you to be ready for the ‘New Normal’ and emerge stronger than ever before.

Thank You!

Closing Remarks by Mr Abhijeet Singh Hazare, 3i Infotech Limited

Thank you, Vinay, for sharing insights on how & which technology will play a big role in shaping the new normal.

We believe that from these unprecedented times we will merge stronger, wiser and smarter and more resilient personally and professionally.

I hope that you and your family find moments of joy throughout and that all stay safe and healthy. I look forward to speaking and seeing you again soon. All the best. Thank you.