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Industry Problem Statements

Global
FinTech
Hackcelerator

Hackcelerator
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Version 2016.06.01
100 PROBLEM STATEMENTS
The global FinTech
community and the financial
industry submitted problem
statements for the Global
FinTech Hackcelerator.
distributed
ledgers trade They also identified potential
insurance literacy applications of technology
HACKCELERATOR to address these challenges.
intermediaries
digital biometrics
payments The problem statements and suggested
solutions may have been edited for
consistent reading. The edits do not
substantially alter the intent of the original
statements submitted.
Contents
100 Problem Statements
1 KYC / Identity Authentication
2 RegTech
3 Trade Finance
4 Insurance
5 Financial Literacy
6 Financial Inclusion / SMEs
7 Customer Engagement
8 Payments
9 Portfolio Management
10 Capital Markets
11 General
Global FinTech Hackcelerator:
Idea submission
1.
kyc & identity
authentication
Kyc &
identity authentication

1
When processing loan applications, financial
institutions require companies to submit
originals of documents that are witnessed by a
lawyer/notary. The reliance on paper
documentation can be cumbersome and
resource intensive. As a result, small companies
Digital
may be underserved because this process is Documents
expensive.

Develop a platform that would facilitate digital

exchange, signatures, and authentication of
notary documents. This platform may also be
used for board resolutions, credit facilities, as
well as other forms of contracts.

Flexible platform (API)

2
Consumers with weak or common passwords
are exposed to unnecessary account risks.
Token-based authentication may also be
inconvenient when not readily on-hand.

Propose a different approach to authentication

that is not reliant on passwords or tokens , and Authentication
would not require financial institutions to invest METHODS
separately in authentication infrastructure.

Flexible platform (API)

KYC
identity
Kyc &
identity authentication

3
AML is a process that is common across the
financial industry. For example, to remit an
international payment from a payor company to
a beneficiary company, sanction screening is
performed by the payor, the payors bank, the
Common
correspondent bank for payor, correspondent Platform
bank for the beneficiary, and the beneficiarys
bank.

Develop a solution that would leverage a

common international platform and
infrastructure. This solution could be made
available to industry players through a
subscription service. Flexible platform (API)
Distributed ledger

4
Paper-based application forms and documents
are common in the industry. Currently, there
are a handful of electronic solutions but these
are expensive and may not be suitable when
originals are required. Financial institutions also Secure
have their own electronic portals but those are
governed by unique processes, tokens and transmission
passwords.

Develop a platform that would enable secure

authentication and transmission of documents
and contracts. Flexible platform (API)
Distributed ledger

KYC
identity
Kyc &
identity authentication

5
KYC processes can be quite time and resource
intensive.

Develop a central platform that would

consolidate information required for the KYC Central
process and validate this information against
local KYC requirements. This platform should Platform
also be able to integrate real-time alerts that
would be triggered by specific events.
Flexible platform (API)
Distributed ledger

6
For KYC and AML requirements, customers
have to repeat the same process and provide
the same information to every financial
institution.

Develop a central database for KYC/AML that Secure

would be accessible by all financial institutions platform
through a secure platform that has high
encryption and authentication using biometrics.
Sharing of customer data should be subject to
user approval.

Ideally, this platform should also enable new

account creation with financial institutions.
Flexible platform (API)
Biometrics

KYC
identity
Kyc &
identity authentication

7
Many financial institutions struggle to maintain
an up-to-date database for AML checks. In
reality, this data is not proprietary yet is
maintained separately by each financial
institution. Central
Develop a central repository that would be Repository
shared among all market participants. This
repository would be a single source of
reference to identify counterparties, company
structures, as well as other publicly available
information.

Flexible platform (API)

KYC
identity
2. REgtech
 Regtech
8
Currently, there is no system that effectively
enables institutions to track and monitor
counterparty risk and market exposure.

Develop a platform that collects trade data to

conduct real-time analytics and provide
automated reporting while taking into account
Real-time Risk
constraints such as sanctions, AML and KYC Analytics
reporting, as well automatically blocking of
transactions against suspicious accounts. This
platform would be used by the industry for
internal risk management, stress tests, and
mitigating other risks.
Big data
Distributed ledger

9
Financial institutions need to optimise the
monitoring of individual transactions and
identify deliberate misconduct during the on-
boarding and servicing of customers.
Fraudulent
Develop a machine learning application that
would identify behavioural patterns. For Behaviour
instance, time to complete processes, missing Detection
fields, amendments, and multiple transactions
are already understood to be highly correlated
to suspicious activity. There are certainly many
more tell-tale signs that could be used to detect
potentially fraudulent behaviour. Big data
Learning machines

Regtech
 Regtech
10
Regulation and standardisation initiatives such as
Europes Revised Payment Services Directive, the
UK Open Banking API Standard and the Korea
Open API Platform are requiring banks to open
up their services (and information platforms) in a Common
consistent way. On the other hand, FinTech
companies are driving demand for banking Industry API
services such as customer on-boarding, KYC, Platform
payments, transaction history, and account
information.

Create a digital financial services exchange (an

API platform) that will drive the standardisation
and implementation of a common set of banking
APIs.

This API platform would reduce both time to

market and investment needed by banks to
create open APIs. The establishment of this
exchange would also lead to the development of
a range of innovative customer centric solutions
such as universal digital wallets, self-service
financial advice, and efficient trade solutions.
Big data
Distributed ledger

Regtech
 Regtech
11
Increased cyber-security risks have necessitated
stricter regulatory and compliance
requirements.

Develop an application that would help licensed

representatives adhere to individual obligations
such as maintenance of personal securities Compliance
registers and changes in personal particulars. tools
This application could also provide the local
regulators with regular updates through a data
platform .
Flexible platform (API)
Big data

12
Compliance departments have to verify a large
number of transactions to potentially identify
insider trading.

Develop a technology that would leverage Insider

machine learning to recognise patterns of
fraudulent behaviour and automatically flag
Trading
potential insider trades. detection

Learning machines

Regtech
 Regtech
13
Regulatory reporting for financial institutions is
not globally standardised and can be
interpreted in different ways (sometimes even
interpreted differently within the same
institution). A given customer, portfolio or OTC
transaction may be impacted by many different
regulations simultaneously. Transaction
Compliance
Many financial institutions are attempting to
build an in-house solution but are finding it tools
challenging to coordinate different regulations
across multiple jurisdictions.

Create a solution that would identify the

regulations that each transaction or account
needs to comply with and the body it needs to
be reported to. The solution could be an all-
encompassing rules-based engine, or it could
target one set of regulations (e.g. derivatives
trade reporting). Flexible platform (API)
Big data

Regtech
 Regtech
14
Regulatory reporting may still be manual and
therefore tends to be costly and time
consuming.

As we move towards an automated trading

clearance system that leverages on blockchain,
regulatory reporting requirements should be
Automated
just as automated and transparent. Regulatory
Identify reporting systems that can be
Reporting
automated directly on the blockchain and build
in automated or convenient regulatory
reporting in the process.
Distributed ledger

15
International banks need to adhere to regulations
from many countries. However, regulations are
published in different formats and structures. For
banks to automate processes and systems around
these regulations, they need to be unified and
regrouped into a set of rules per country. CODIFIED
Regulations
Design a solution that can read many different types
and formats of banking regulations and codify the
content into a rules / data model.
Flexible platform (API)
Distributed ledger

Regtech
Trade finance
16
There is a lack of awareness on trade finance
and trade credit products that are available to
SMEs.

Establish a digital marketplace that would

include banks, insurance companies, credit
agencies, marketplace lenders and the SME Blockchain
sector. Trade financiers would list products and Platform
services available to the SME sector with online
applications, basic terms, and contracts. In turn,
SMEs would be able to post trade finance
opportunities with their contact information
and credit scoring.

Ideally this platform would leverage on

blockchain technology to improve reliability and
visibility in cross border trades while
incorporating a mobile solution to track, settle
and confirm trade flows. Distributed ledger
mobile payments

17
The trade finance industry is facing many
challenges when it comes to verifying that trade
documents are authentic as these are still
verified manually across multiple parties.
Smart
Develop a smart contract solution that would contract
leverage the data collected from IoT and
sensors on ships as well as on goods
themselves to trigger certain arrangement
conditions. Combining this smart contract
solution with the use of blockchain would
provide a level of security and trust concerning
arrangement conditions and their execution.
Distributed ledger

Trade
finance
Trade finance
18
Establish a digital supply chain finance hub that
incorporates leading technologies in cargo
documentation, SWIFTs MT798 trade
messaging utility, BPO and blockchain with a
focus on trade finance applications in Digital
Singapore.
Documents
Consider developing a pilot with a few critical
stakeholders from the trade ecosystem as a
working group. This working group could
include banks, shipping companies, chambers
of commerce, insurers, customs authorities,
government agencies, and regulatory bodies.
This pilot would be a risk-based and policy-
driven approach to digital document security
that would have the potential to be adopted by
all players along the trade supply chain.
Flexible platform (API)
Distributed ledger

19
Today trade finance operations still use
traditional methods such as fax and emails. This
process is tedious and prone to human error.

Develop a solution that would enable self- Self

authentication and reduce fraud. Both agents
and institutions could go to this platform to Authentication
verify document authenticity and update trade
status.
Distributed ledger

Trade
finance
INSURANCE
20
The insurance claim process can often be
confusing and time-consuming for claimants
and both labour intensive and costly for
insurers.

Develop a technology that would automate the

claims process. This should result in reduced Automated
filing effort, faster payouts and a reduction in Claims processing
fraudulent practices.

Flexible platform (API)

21
Insurance is a process-intensive business that
relies on intermediaries for the recording and
transmission of information.

Find a way for insurance companies to integrate

blockchain technology that would enable P2P
Smart
exchange of information and/or smart contracts contract
to eliminate the need for third party
verification.
Distributed ledger

INSURANCE
INSURANCE
22
The increasing complexity and scope of
insurance products make it difficult for
individuals to track what they have bought and
assess the suitability of new products.

Develop an end-to-end insurance platform that

would allow the customer to manage, track, End-to-End
review, and buy insurance policies in a simple Platform
and informed manner. The platform should
allow the insurer or intermediaries to sell their
solutions directly to the customer.
Flexible platform (API)
Learning machines

23
Insurance products are typically linked to
vulnerable moments in peoples lives. Customer
engagement is generally limited to policy
quotes, customer acquisition, contract renewal,
and claims.

Develop a tool that would leverage social media Social media

and public information to drive customer Engagement Tool
engagement and identify potential leads in the
Insurance sector.

Flexible platform (API)

INSURANCE
INSURANCE
24
Insurers have traditionally based their
underwriting and pricing principles on a limited
number of variables. Emerging technologies,
such as wearables equipped with sensors from
heart-rate tracking to GPS, routinely capture Smart
real time biometric and lifestyle data.
Pricing
Build a pay-as-you-live ecosystem that would (lifestyle)
provide personalised premium ratings based on
the data collected to customise life and general
insurance coverage.
Advanced sensors
Big data

25
Insurers typically base their products and
services on simple static health data.

Develop a health monitoring application that

would capture smart home sensor data and
health application. This data could also leverage Smart
medical record history provided by hospitals, Pricing
insurers as well as data from smart health
hardware providers. (Health)
The use of data analytics would enable insurers
to develop new pricing models around
healthcare tracking and smart home data.
Advanced sensors
Big data

INSURANCE
INSURANCE
26
Develop a smart car insurance product that
would capture data from various sources
(smart-phone, OEM connectivity) to generate
driver profiles and develop risk scoring
algorithms. Smart
Pricing
The solution would enable insurance
companies to develop alternative car insurance (Mobile)
products (pay when you drive, pay per mile, pay
per journey) and provide incident related
services such as claim automation.
Advanced sensors
Big data

27
Insurance premiums are generally charged
using a fixed premium model and do not
necessarily reflect the customers behaviour or
actual consumption of the coverage.
Smart
There are still many unexplored uses of data Pricing
collected from connected devices to be used in
dynamic pricing models including, pay as you (Home)
use pricing .
Advanced sensors
Big data

INSURANCE
INSURANCE
28
During a severe road accident, parties involved
must wait for emergency services to arrive.
Drones could be used to better route traffic and
contact the appropriate services (ambulance,
towing, insurance company).

The following information could be captured Data Collection

from data collected by drone sensors/cameras: Using drones
Evidence for insurers to access damage
Providing photo and video proof for claims

Advanced sensors
Big data

29
A new market is developing to insure against
damage caused by commercial or private
drones.

Build a platform that would assess the Drone

proficiency (experience, algorithms that assess
previous flights) of drone pilots , the Pilot
environment (previous flights), their equipment insurance
(flight time, drone used, wear and tear) and
develop pricing models for drone related
insurance products.
Flexible platform (API)

INSURANCE
INSURANCE
30
Fraudulent claims make up a large part of the
cost of providing insurance. Insurers could work
together to monitor patterns and behaviour
across multiple product lines.

Develop a technology solution that would

gather, standardise, and analyse data to identify Fraudulent
fraudulent behaviour. This tool could also Behaviour
integrate data across multiple product lines for
a more complete analysis . Detection

Big data
Learning machines

31
Insurers rely on historical data to predict future
outcomes. The growth of connected devices
gives insurers the opportunity to collect real-
time information that would be likely to affect
insurance claims.

Develop a solution that would enable insurers Predictive

to reshape the predictive models they use to Underwriting
collect data and integrate this information into
pricing, underwriting, and loss forecasting. Model
Big data
Learning machines

INSURANCE
INSURANCE
32
The insurance industry is looking for effective
ways to leverage sensor data for real-time
earthquake predictions to limit damage to
infrastructure and human injury.

For instance, a data-driven alert and warning

broadcast service could limit damage from Natural
catastrophes. However, it is unclear how catastrophe
accurate real-time earthquake predictions can
be with existing available data. Prediction
Design a prototype that would predict
earthquakes (or other natural disasters) using a
time series of seismographic data at different
locations. The goal would be to predict these
events with very high accuracy as early as
possible.
Advanced sensors
Learning machines

33
Product Disclosure Statements (PDS) are
densely worded, legally binding and include
formal disclosures required by law. Although
these statements are important to the
customers understanding of their insurance
policies, in reality, most customers do not read
them and therefore do not fully understand Human-centred
their products.
Disclosure
Design an innovative technology approach to statements
make PDS easier to read by customers but at
the same time meeting regulatory
requirements.
Flexible platform (API)

INSURANCE
5. Financial
literacy
Financial Literacy
34
It is important to cultivate consumer education
on complex personal finance matters.

Develop a comprehensive personal finance

management tool that would enable consumers
to understand the fundamentals of personal
finance as well as the benefits of sound Personal finance
financial management. This tool should go
beyond income and expenditure management Management tool
to include tax planning and the planning of life
events such as home ownership, marriage and
saving for retirement.

Gaming and gamification

35
Mobile games provide an opportunity to engage
children on personal finance education.

Create a free-to-play mobile game (with in-app

purchases). The proceeds of in-app purchases
would be placed into an investment vehicle
and/or a personal account. After a certain
Gamified
amount of funds have been accumulated, the Investment
financial institutions running the game would
provide tools that would enable customers to
Tool
reinvest and manage these funds.

Gaming and Gamification

Financial
literacy
Financial Literacy
36
Millennials have a different approach to
personal finance. They may be less likely to
consider longer term investment products.

Create an interactive digital ecosystem that

would include various saving and investment
vehicles, while leveraging on robo-advisor
Interactive
technology, that would allow insurers to offer Digital ecosystem
advice when appropriate.

Learning machines

37
Retail investors may not purchase financial
products because of a lack of understanding.

Develop a user friendly tool that would appeal

to this segment and educate individuals on
financial products. Financial
Education tool

Gaming and gamification

Financial
literacy
Financial Literacy
38
Develop a creative and engaging tool, game or
app that provides financial literacy education at
strategic points in a persons early life.

The technology could include secondary school

curriculum modules, or game style tools that
teach basic financial skills such as opening bank Financial
accounts, as well as more elaborate financial
concepts such as budgeting, savings, credit,
Literacy App
interest, debt, financial planning or even basics
on markets and how these work and interact.

Gaming and gamification

Financial
literacy
6.
Financial
Inclusion /
SMEs
financial inclusion / sme s

39
Digital KYC for mobile wallet transactions is
difficult to implement for migrant workers in
rented dormitories as they may not be able to
provide proof of residence through a phone or
power bill.

Develop a solution that would leverage on Authentication for

existing government authentication solutions
(SingPass in Singapore) to validate the identities
migrant workers
of migrant workers.
Authentication

40
Customer service departments in the financial
industry needs to keep up with the evolving
digital world and the "always on" consumer.

Develop a solution that would offer an

interactive, smarter seamless customer Digital
experience through the use of instant
messaging and smart devices. This solution customer service
should integrate machine learning and AI to
produce faster and more accurate responses to Flexible platform (API)
customer requests.
Learning machines

Financial
inclusion
/ smes
 financial inclusion / sme s

41
Existing credit underwriting models do not
leverage new sources of qualitative and
quantitative information, both for individuals
and SMEs.

Provide a solution that would leverage non-

traditional data sources to selectively refine Data-driven
existing underwriting models (rather than re- Credit underwriting
write them). This would enable financial
institutions to lend to new customers that they
would have rejected before.

Big data

42
Traditionally banks have built their systems
around large multi-purpose relational
databases, mainly because consistency was
considered one of the most important aspects
of bank data.

On the other hand, many apps for the micro- Scalable

service model are built to be agile, but not
necessarily scalable to capture a bigger market. Micro-services
Build a simple microservice-based banking
transaction service that can scale massively
across many nodes while demonstrating data
consistency within acceptable latency.
Flexible platform (API)

Financial
inclusion
/ smes
financial inclusion / sme s

43
Singapore SMEs continue to rely on paper-
based methods to reconcile payments and
accounts. Structural deficiencies associated
with traditional methods such as returned
cheques, lost invoices and T+2 processing time
for telegraphic transfers can create a vicious
cycle of inefficiencies. Finance&
accounting suite
Develop a full product suite for SMEs to manage
their purchase orders, invoices and cash flows.
Flexible platform (API)

44
Credit evaluation has been historically based on
audited financial statements of companies.
However, many SMEs may not need to audit
their financial statements and this makes the
credit evaluation of these companies
challenging.
Data-driven
In the digital economy, financial institutions
should leverage new data points through social Credit Evaluation
media and connectivity in the market as an
alternative to their existing credit scoring
model.
Big data
Learning machines

Financial
inclusion
/ smes
financial inclusion / sme s

45
Financial inclusion and credit offering continue
to be a challenge in many markets around the
world, especially in those where there is poor or
limited information about a customers credit
worthiness.

Find a solution that would enable financial Banking solutions

institutions (or other FinTech firms) to offer
banking solutions (based on alternative credit
for the unbanked
scoring) to people that do not currently have
access to basic financial services.
Authentication

46
The United Nations High Commission on
refugees estimated 60 million people have been
displaced by war. This population has limited
access (if any) to basic financial services.

A financial inclusion solution can address KYC

refugee pain-points in: for refugees
Identification: undocumented refugees can
be denied registration, basic services and
asylum, resulting in forced detention or
return to areas of conflict.
Mobility/Migration/Remittance: identification
is fundamental to orderly and legal channels
for refugees to move. It is also critical to the
safe remittance of funds back to their
country of origin.

Create alternative identification and KYC

methods that could be used by refugees and
give them access to basic financial services. This
solution could combine mobile and blockchain
technology for both NGOs and refugees to track
financial data and refugee movement.

Authentication

Financial
inclusion
/ smes
financial inclusion / sme s

47
Digital mobile payments are a widespread
mechanism for delivering aid, but their
successful launch would require banks and
mobile network operators to partner together.
Although there has been widespread adoption
of mobile wallets, there has been little focus on
adapting this model to the needs of this Mobile payments for
segment.
administering Aid
For example, phones may be limited in a
refugee camp, therefore multiple people may
depend on the same device. Creating multiple
accounts under the same number would be a
simple solution.

Smaller NGOs still use paper vouchers as

means of payment, which can lead to fraud and
violence.

Find a solution that would enable people in

regions requiring emergency aid to make
payments and withdraw cash through
alternative networks. This solution could
combine biometrics with blockchain and crypto biometrics
currency.
Distributed ledger

48
Services provided to SMEs are typically general
in nature and not customised to their needs.

Develop an integrated solution that would

provide banking and business connectivity to
small businesses, based on their scale, growth banking
stage, and service requirements. These services
would be broader than simple financial services connectivity
and would include business management. for SMEs
Learning machines

Financial
inclusion
/ smes
Customer ENGAGEment
49
Investors receive a large number of reports,
recommendations and financial news from
many different sources and there is currently
no platform that can structure and aggregate
this data.

Develop a platform that would consolidate Aggregated news

news, information and reports that are relevant for investment
to investors based on their needs and
investment strategies. This platform should
provide investors with industry snapshots,
financial news highlights, as well as research
reports categorised by topic/analyst.
Flexible platform (API)

50
There are many data sources available to
financial institutions to research prospects,
customers, products, and regulations. However,
many of these data sources are irrelevant,
incomplete or even incorrect.

Develop a solution based on sophisticated Financial

algorithms that can be used to cross-check the data analysis
veracity of information available online.
Software should combine all sources and
provide filter options so that information from
unverified sources can be eliminated.
Big data
Learning machines

Customer
engagement
Customer ENGAGEment
51
Young couples looking for their first property
are usually faced with uncertainty during their
research and evaluation.

Develop an application that can help

prospective home buyers analyse financial
information and match them with properties Financial
that they can afford. It should also provide an analysis for
overview of the housing neighourhood based
on public images posted on social media. The home buyers
application should also allow users to
document and review house visits and
appointments in a fun and engaging way,
compare different properties, and make an
informed purchase decision. Big data
Flexible platform (API)

52
Consumers need to manage a number of
reward programs such as stamp cards,
specialised store value cards, loyalty
applications, and credit card point systems.

Build a platform that would merge loyalty

rewards from multiple merchants and enable AggregateD
the (cross) redemption of reward points from loyalty rewards
different merchants.

Flexible platform (API)

Customer
engagement
Customer ENGAGEment
53
It is difficult to aggregate and analyse multiple
customer data sets in real-time.

Create a technology platform that would

redefine the way we think about customer
loyalty and rewards. This platform would collect
and integrate customer data within a loyalty Customised
engine and reward them for specific behaviours
that are aligned with the interests of financial
Loyalty rewards
institutions.

Flexible platform (API)

54
Financial institutions communicate with
customers via paper statements and advice.
This is mostly done via traditional mail, which
has limited security, long delivery times, and
involves a lot of manual paper handling.

Create a mobile friendly application targeted at Aggregated

retail customers. This application would provide
access to aggregated financial transaction
financial
details (if possible across different financial statements
institutions), customisable reports from various
accounts and/or financial institution,
customisable storage for statements, personal
data, and real time notifications.

Flexible platform (API)

Customer
engagement
Customer ENGAGEment
55
In a world where many financial institutions are
moving from an offline to an online presence,
many applications do not cater for persons with
visual impairment.

Develop a mobile banking solution that would

be tailored to the needs of the visually Mobile banking
impaired. This solution would enable this for the
segment to access a range of financial services
such as balance queries and money transfer. visually impaired

Flexible platform (API)

mobile payments

56
In Singapore, there is currently no application
that allows a person to manage and consolidate
his/her accounts from different financial
institutions.

Develop a platform (or a set of APIs) that would

allow customers to merge their various online Aggregated
banking platforms to manage their finances.
personal finance

Flexible platform (API)

mobile payments

Customer
engagement
Customer ENGAGEment
57
Consumers generally do not keep track of
savings they have made through the use of
discount coupons, loyalty programs, or price
comparison engines.

Develop a solution that would enable

customers to place the money that they have Aggregated
saved into a virtual deposit box. These savings savings
could then be discounted against future
spending (e.g. If an individual wants to go on a platform
trip to Hawaii that costs SGD 5,000, the travel
agent would only agree to give a discount if the
individual saves a certain amount within a
stipulated period).
Flexible platform (API)

58
In corporate banking, a companys decision to
select a bank is influenced by many factors.
Over the course of the relationship, there can
be tell-tale signs of customer dissatisfaction
(e.g. declining transaction volumes, declining
operating cash balances, etc.).
Customer
Develop a solution that would enable banks to
analyse customer relationship data to identify
data analytics tool
telltale signs of customer attrition so that they
can improve and build lasting relationships

Learning machines

Customer
engagement
Customer ENGAGEment
59
Travellers need to go to tax refund kiosks at the
point of departure to claim their GST/VAT
refunds.

Develop a mobile claim process that would

directly credit the funds onto a debit/credit card
at the point of sale to create a more seamless Mobile tax
process for the verification of GST free goods
declared by tourists.
refunds

Mobile payments
Flexible platform (API)

60
Banks have generally focused their efforts on
their offline presence as that is where most of
their customers come from. Going forward, it is
conceivable that more business will be
conducted online.

Design and build a lean online banking innovative

presence that can provide value-added banking
services (excluding payments) to customers Digital banking
who frequent "new economy marketplaces"

Flexible platform (API)

Customer
engagement
8. Payments
payments
61
The IoT trend is characterised by greater
connectivity due to the integration of sensors
and computing capabilities in devices .

Design a solution that would integrate data

collected from IoT devices within financial
services and enable better financial decisions,
budgeting, real-time purchases, as well as the
INTEGRATED
payment of goods and financial services. This IOT DATA
solution should address all privacy, security,
identification, and authentication issues. It
should also enable financial institutions to have
better insight into customer behaviour and
purchasing patterns.
Advanced sensors
Big data

62
Singapore has high cheque usage rates. It takes
an estimated 2 days to process a cheque and
the cheque processing cost can vary from $3 to
$5.

Develop a solution that would enable:

Real time issuance of cheques using digital Digital cheques
banking credentials
Digital deposit of cheques
Real time clearance of cheques via e-payment
(leveraging the existing G3 network)

Digital payments

payments
payments
63
Many service providers have built their own
wallets. However, these are not compatible
from one to the other. The customer
experience around bank transfers (push
payments) or direct debit (recurring pull)
payments is fragmented across Southeast Asia.
Seamless
Develop a seamless payments solution that
would leverage: PAYMENTS
Biometrics or strong authentication SOLUTION
Linkage of authentication to unique ID
accessible across all banks
Funds transfer via digital/mobile medium
(preferably single login)
Mobile payments
Flexible platform (API)

64
In Singapore, there are few standard APIs that
enable companies to transfer funds to bank
accounts through a direct debit functionality.

Design a gateway interface that uses APIs to

reduce complexity and the cost of multiple
clearing interfaces for banks that would enable API gateway
SMEs/merchants to
Do direct debits/transfers at low cost
Streamline/minimise the number of
interfaces and messages that impact their
core banking platform
Select the appropriate clearing scheme based
on the nature of the transaction
mobile payments
Flexible platform (API)

payments
payments
65
In Singapore, some of the settlement systems
are becoming obsolete. Legacy systems need to
be upgraded and/or replaced.

Design a solution that would improve existing

settlement systems to:
Reduce settlement periods
efficient
Facilitate authentication SETTLEMENTs

Digital payments
Flexible platform (API)

66
Schools in Singapore require cash payments for
different transactions, e.g. canteen purchases,
school enrichment classes, textbooks
purchases, school bus services. Typically,
parents give pocket money (in cash) to their
children to manage such expenses.
CASHLESS
Design a solution that would enable a cashless
school system. Information could also be used SCHOOLs
to monitor students expenditure and even
dietary habits.

mobile payments
Big data

payments
payments
67
Small payments at hawker centres are usually
cash-based. As a result, owners may encounter
cash management issues, delayed settlements,
and even loss of customers. Cash payments
also make it challenging for regulators to track
earnings and calculate taxes.
PAYMENTs for Low-
Create an alternative payment solution that value transactions
would not result in adding costly infrastructure
for the hawker stall owners.

mobile payments
Flexible platform (API)

68
The collection of season parking payment is
fragmented in Singapore and may create
frustration for car owners. Season parking
payments typically come in several forms.

Design a solution for a more convenient,

frictionless way for drivers to pay for their SEAMLESS
season parking fees on time and online, without
the use of cheque and cash. The solution could SEASON PARKING
be extended to help the management company FEE PAYMENTS
automate back end accounting and activation of
services.

Digital payments
Flexible platform (API)

payments
payments
69
Technologists expect 2016 to be the year of
mobile wallets. However, the offerings among
current wallets are very similar and
undifferentiated.

Find a solution to enhance the value

proposition of mobile wallets to create enhanced
customer stickiness, promote a mobile centric
lifestyle, and give individuals a compelling Mobile wallet
reason to stay within the mobile wallet
ecosystem.

Some suggestions could include loyalty,

couponing/discounts, real time redemptions
that add further value beyond the simple
payment solution.

mobile payments
Flexible platform (API)

payments
payments
70
Large companies can integrate their Enterprise
Resource Planning systems with SWIFT or
directly with banks using host-to-host APIs.
However, smaller companies do not have the
capacity to integrate their systems, resulting in
a lot of manual operations to manage incoming
and outgoing money flows. Automated
Develop a rules-based engine that would
payments ENGINE
perform automatic tasks when certain
conditions are met. These rules could either be
configured in the online platform or uploaded
through APIs. Learning machines
Flexible platform (API)

71
Instead of building proprietary online apps,
banks could integrate with existing platforms
(e.g. messaging apps).

Develop a cross platform payment solution that

would allow users to send money via an
integrated keyboard in any text-based content CROSS-PLATFORM
(Facebook, WhatsApp, Line, etc.). As a result
banking can be integrated into the daily
PAYMENTS
conversations of its consumers without the
need to redirect to proprietary banking apps.

Mobile payments

payments
9.
Portfolio
Management
Portfolio management
72
A lot of manual processing is involved when
distributors and financial advisors fax
subscription and redemption orders to
registrars of funds or when investors send their
orders to distributors and financial advisors.

Develop a B2C2B platform to automate the Automated

end-to-end ordering process for fund institutional
management and insurance industry. This
solution should cut across retail and investments
institutional investor order channels and enable
order placement with distributors, financial
advisors, and registrars of the funds.
Flexible platform (API)

73
Asset managers in Asia face timing issues for
portfolios maintained in Asian currencies, as the
underlying indices are based on US or EMEA
markets. This causes delays in index production
due to usages of specific FX rates.

Develop a solution that would: PREDICTIVE FX

Connect the regional exchanges to publish
the indices in local Asian currencies RATE MODEL
Build a predictive FX rate model that can be
vetted by a central agency (if an FX rate
accepted by the industry is not available in
real time)
Big Data
Flexible platform (API)

Portfolio
management
Portfolio management
74
Fund management and insurance companies
are required to publish NAV prices for their
investment products. While fund managers and
insurance companies have processes and
controls to minimise valuation errors, these are
not foolproof. There also appears to be no
robust, systematic diagnostic tool that flags REAL-TIME
potential valuation errors.
DIAGNOSTIcs
Develop a real-time diagnostic tool that would
detect NAV calculation anomalies across a large
number of portfolios. Learning machines
Big data

75
Currently, financial advisors assess their
customers investment profile based on static
questionnaires.

Develop an interactive customer evaluation tool

that would enable financial advisors to
accurately assess a customers investment INTERACTIVE
profile on an on-going basis. The main features
of the tool should include: CUSTOMER
Behavioural finance based interactive EVALUATION
questions
Risk profiling and scenario
modeling/simulation
Learning modules for customer
Learning machines
Big data

Portfolio
management
Portfolio management
76
Asset Managers need to take into consideration
a number of factors when building a portfolio
for their customers such as:
Portfolio performance
The risk appetite of the customer
Investment theme Smart
Risk factors and regulatory considerations PORTFOLIO
Risk exposure metrics
MANAGEMENT
Typically, these are either dealt with
heuristically or through weighted averages,
which leads to sub-optimal portfolio
performance and diminished investor returns.

Develop a portfolio management tool that

would deliver a decision making framework and
a calculation engine that builds a portfolio
consistent with the objective of all stakeholders
(investors, risk managers, salespeople, and
regulators). Learning machines
Big data

Portfolio
management
Portfolio management
77
Robo-advice is trending as a new way to explore
customer needs and deliver financial advice.

Develop an automated and real-time

investment advice engine that would include:
A robust goal-based investing and planning REAL-TIME
framework
Algorithm-driven asset allocation and INVESTMENT
portfolio rebalancing. This should be Advice
customised, tax efficient, and with minimal
human intervention
Real-time product recommendations that
are in response to goals, market events, and
trading history
Timely alerts and recommendations
Learning machines
Big Data

78
Pre-packaged solutions offered by financial
institutions may not be easily customised and
thus adapted to customer lifestyles. Financial
institutions could be more transparent on what
their offerings are and what other people in
similar situations have opted for.
data-driven
Build a platform that takes into account publicly
available information (e.g. Facebook, Twitter
INVESTMENT
and meta data) to determine individual RECOMMENDATIONS
protection needs and suggest a tailored
solution.
Learning machines
Big Data

Portfolio
management
Portfolio management
79
Providing structured products to retail investors
in Asia is a challenge. There is a lack of
standards in technology and corporate actions,
lifecycle event communication, custody and
settlement, as well as secondary trading venues
for structured products. This undermines
efficient handling, thus keeping processing Neutral platform
prices high for investors, which in turn For Structured
increases minimum creation sizes.
Products
The value chain for structured products needs
to be more efficient by integrating price-finding
venues, multi-issuer platforms, reference data
and corporate action communication standards,
core banking, and connectivity services.

Develop an issuer neutral market access for

certain structured products to enable:
Efficient price discovery and customer
suitability checks in accordance with various
rules and regulations
straight-through execution and post trade
processes, including the evaluation of
instruments, provision of term-sheets,
monitoring, and processing of lifecycle
events
Provision of educational and information
documentation to facilitate the decision
making process
Learning machines
Big data

Portfolio
management
Portfolio management
80
There is a need to improve access to updated
pricing information (e.g. loan rates, deposit
rates, brokerage rates) that allows financial
institutions to calibrate their pricing strategies
quickly.

Develop a tool which can be integrated with the Investment

investment management platform to: Management tool
Compare pricing and changes
Predict possible surges or dips

Big Data
Flexible platform (API)

81
Most robo-advisors base their analysis on
quantitative data (historical prices, index data,
economic statistics, etc.). However, this can lead
to a lag in performance as opposed to a
combination of both quantitative and
qualitative data.
Robo-Advisor
Develop a next-gen robo-advisor that leverages
AI and natural language processing to provide
effective trading strategies using both
qualitative and quantitative data.
Learning machines
Big data

Portfolio
management
Portfolio management
82
Large buy side firms currently use central
matching applications combined with industry
databases. However due to lack of resources,
many of the smaller buy side firms require their
brokers to process their trades through manual
methods. These methods are subject to risk of
human error, mismatched trades, trade failure,
Straight-Through
and higher servicing costs. Processing
Develop a product that would be tailored to
smaller buy side firms to enable straight-
through processing through a central matching
application. This should lower the cost of trade
processing, operational and counterparty risks,
and would enable greater connectivity between
players in the industry.
Flexible platform (API)

Portfolio
management
Portfolio management
83
Real estate and unlisted equities may account
for a large portion of wealth management
portfolios. However, data for these assets may
not be available because of formatting issues or
limitations on current Optical Character
Recognition (OCR) technology.
Research
Develop a research aggregation service that Aggregation
would cover these classes of assets. This service
could leverage AI and machine learning to
Service
provide customised research results and
product recommendations.

Flexible platform (API)

84
The shareholder on-boarding, maintenance and
reporting requirements in the asset
management industry is costly and prone to
delays and errors.

Develop a solution that would automate the

recording, transfer, and reporting of shares Automated
while reducing the margin for human error. This reporting
solution should be easy to access and flexible
enough to support local variations.

Flexible platform (API)

Portfolio
management
10.
Capital
markets
Capital markets
85
The settlement of payments and trading of
assets (bonds, securities) is a lengthy process.

Build a solution based on blockchain technology

and shared ledger related technologies that will
shorten the time needed to process interbank
settlements. The solution should: Efficient
Work even if multiple banks are offline payments
Be fast enough to handle more than 50
transactions per second settlement
Be scalable enough to allow several banks
in a country or in a regional alliance (APAC),
to join the same network
Support a number of policies that allow a
governing institution, such as a Central
bank, to control and govern the blockchain
whenever needed.

Distributed ledgers

86
The settlement of financial securities (e.g.
stocks) currently takes two to three days.

Design a solution that would reduce the

settlement process from the current 2-3 days to
less than a minute.
Efficient
transaction
settlement

Distributed ledgers

Capital
markets
Capital markets
87
Australian short-term money market
instruments are settled on the trade date in the
Australian Securities Exchange system between
members of Austraclear.

However, if one of the trade is not a member

(e.g. domestic or foreign investment managers),
Streamlined
they use their custodian bank (that is an Trade Settlements
Austraclear member) to settle the trades.
Communicating the notification to settle
requires the ISIN for the instrument and this
creates processing challenges.

Develop a technical solution that would enable

non-members of Austraclear to easily identify
the ISIN code of the instrument they have
traded. This would enable them to create clear
and unambiguous settlements as well as
notification messages they can send to their
custodians via SWIFT network.
Flexible platform (API)

88
The dissemination of interest rates is manual
(communication is still done via e-mail / phone
call). This slows down decision making and
trade execution processes (speed, frequency,
amounts, margins).

Develop a secure distributed platform that

Secure distributed
consolidates real-time rates from all banks to platform
transact on dynamic real-time pricing.

Cloud computing
Flexible platform (API)

Capital
markets
Capital markets
89
The inappropriate use of credit mitigating
techniques was at the root of the sub-prime
crisis. As a result, the banking industry is facing
more stringent regulations and a higher cost of
capital.

Develop a platform that provides optimal Collateral & risk

collateral and risk management capability to
enable capital relief through financial
management
structures, improve the speed of decision
making, and lower the cost of compliance.
Flexible platform (API)

90
Retail investors of unit trusts are subject to
distribution charges (i.e. front-end fees or
commissions, and redemption or back-end
fees). However, these charges, which can be as
high as 5% of the investment, are not
transparent and are highly varied even among
similar types of unit trust products. Transparent
distribution pricing
Develop a solution that will improve the
transparency as well as the variability of unit
trust distribution costs while leveraging
technology to enhance distribution efficiency.
Big data
Flexible platform (API)

Capital
markets
Capital markets
91
There is limited transparency on the cost of FX
between different firms.

Develop a FX marketplace with integrated

Central Counterparty clearing that supports T+1
settlement . Members would take part in FX
pricing and would compete on liquidity. Integrated
FX Marketplace
Flexible platform (API)

Capital
markets
11. general
general
92
In the financial services industry, jobs that entail
menial and repetitive tasks may be replaced by
robotics in the not too distant future.

Develop a solution that connects with HR data

to identify the groups that will most likely be at
risk, match these with tailored training solutions
Tailored
and identify new job opportunities. Training
Big Data
Learning machines

93
The world of learning and development is
changing in the digital age. Instead of classroom
training, learning should be real-time and
contextual.

Develop an automated training program that

would result in the faster onboarding of new Automated
joiners, require less supervision, automate Training
compliance monitoring, and responds to global
developments in real-time.

Flexible platform (API)

Learning machines

general
general
94
Some operational performance reports (e.g.
business units' profit & loss, balance sheet,
pipeline leads, and projections) are compiled
manually through spreadsheets.

Develop a solution to produce these reports

automatically while meeting the confidentiality Automated
requirements of a bank. Existing Cloud Reports
technology might not necessary meet the
confidentiality requirements.
Big Data
Flexible platform (API)

95
Financial institutions find it challenging to
leverage cloud infrastructure due to uncertainty
on the regulatory compliance of cloud service
operators .

Develop an automated compliance testing

solution for cloud service operators. Compliance
Testing

Cloud computing

general
general
96
Financial institutions produce thousands of
reports for their customers. Although the
production of these reports is automated, the
translation of these into the customer's local
language is manual, costly, and time
consuming.
Automated
Develop a semi automated translation solution Translation
for financial institutions that enables efficient
review and workflow validation.
Learning machines

97
Banking operations usually involve a lot of
manual work to create formatted reports from
original files provided by customers.

Develop a technology (similar to OCR) that

would automate the creation of reports by
categorising information from original files and Automated
condensing them into the required format. Reports

Flexible platform (API)

general
general
98
Transactions submitted for processing by
another party are typically encrypted for
network transport and, in many cases, for
storage. The data can be decrypted in its
entirety by a party with the right keys. This
poses as a potential cybersecurity risk.
Layered
Find a solution that would implement layered Data
encryption so that portions of transaction data
could be decrypted by trusted parties for Encryption
processing. This would allow selective
disclosure of information to different trusted
parties on a need-to-know basis.

Parties with keys would have access to the data

associated with the key they own. Only the
owner of the data would have full access to the
data. Distributed ledger
Cyber security

general
general
99
The process of assigning a unique transaction
number agreed by both parties to financial
transactions conducted OTC and bilaterally by
non-electronic means is very problematic.

Find a smart algorithm that would Unique

independently generate the same transaction Transaction
number based on key trade data inputs given
by different parties. identification
E.g. Party A and Party B have agreed an OTC
trade. If there was a service (or a library) they
could use to generate the same transaction
number when presented with trade data then
this would increase efficiencies.
Distributed ledger
Cyber security

100
Institutions could derive great insights from
overlaying data from different types of data
sources. Data sharing will drive innovations in
Big Data. However data privacy and security
discourage firms from sharing and exchanging
data.
Safe data
Develop a solution that would mask confidential sharing
information and attribute a common key so that
information can be aggregated and exchanged
without breaching customer confidentiality.
Distributed ledger
Big data

general
 Glossary of terms

2FA Two-Factor Authentication

AI Artificial Intelligence
AML Anti-Money Laundering
API Application Programming Interface
BPO Business Process Outsourcing
FX Foreign Exchange
GPS Global Positioning System
IoT Internet of Things
ISIN International Securities Identification Number
KYC Know Your Customer
NAV Net Asset Value
OCR Optical Character Recognition
OEM Original Equipment Manufacturer
OTC Over-the-Counter
P2P Peer-to-Peer
SME Small And Medium-Sized Enterprise
SWIFT Society For Worldwide Interbank Financial Telecommunication
 Global FinTech
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 FinTechFestival.sg
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