The COVID-19 pandemic has hit the global economy badly. It has especially affected small and medium enterprises the most.
Governments across the globe are trying to revive the economy by offering support to small and medium enterprises.
Singapore, as it often does, is leading the way.
Recently, the Monetary Authority of Singapore (MAS) Financial Sector Technology and Innovation (FSTI) announced a Digital Acceleration Grant (DAG) scheme to support small financial institutes in their digitization journey. Trying to convert the current threat into an opportunity for transformation, the scheme helps these companies adopt digital solutions to improve their productivity, strengthen their operations, become resilient, and serve their customers better.
The eligibility criteria of the DAG scheme say that
The company should be a Singapore-based financial institute regulated by MAS (licensed or exempted from licensing). It should not have more than 200 employees.
Or it should be a Singapore-based FinTech firm certified by the Singapore Financial institutes Association. It should have not more than 200 employees.
Before we dig deep into how companies can leverage this scheme, let’s look at the categories of solutions that the scheme supports. According to the project eligibility criteria, the qualifying solutions should be from the below categories only. They should not be built from scratch or require investment in heavy infrastructure such as servers.
Communication and collaboration tools
Compliance & KYC tools (including transaction monitoring tools)
Customer relationship and engagement tools (including digital customer onboarding)
Data-related services (including data warehousing, data automation, data analytics)
Enterprise services (including HR and accounting systems)
Marketing productivity tools (including customer sensing tools, insights generation)
Office productivity tools
Project management, software development, and testing tools
Solutions to support alternative working arrangements, operational resilience, and BCP
Here are a few ways in which companies can leverage this innovative DAG scheme.
Digitize customer onboardingAccording to a survey by the Harvard Business Review, 85% of the respondents said that successful customer onboarding would ensure long-term customer loyalty. In unprecedented times like these, acquiring customers and winning their trust and loyalty is essential to gain a competitive advantage. That’s where digitizing the customer onboarding process will help. Digitizing will enable financial institutes to reduce the complexity in the onboarding process. They can automate the process of KYC checks and background verification and accelerate the process of opening the accounts. Digitization will also be helpful for customers as it brings in transparency in the account opening status, and they get full control over their transactions.
Set up better customer relationshipsCustomer Relationship Management (CRM) is no longer just an option. It has become a necessity to improve customer experience and sales and to retain customers. A CRM gathers data about prospects and customers from all channels in one place and centralizes it to help the financial services company personalize the experience for the customers. Organizations can leverage the insights gained from the CRM to build better lead pipelines and get a 360-degree overview of the prospects and customers. The in-built dashboards and analytics within the CRM can help financial services providers understand their customers and use that information to improve customer acquisition and retention. From marketing, sales, to customer relationships – all functions within the company can leverage the CRM data to create a consistent and frictionless experience for customers.
Set up compliance and regulatory management
Obviously, financial services companies are required to adhere to Singapore’s specific regulations and company laws. Some of these regulations include - Anti Money Laundering and Countering the Financing of Terrorism Guidelines, Standard Incorporation Regulations, etc. The array of needs has increased the onus on them for compliance and regulatory management. Companies can leverage compliance and regulatory management technologies to conduct regulatory assessments, manage risks, etc. without any hassles or gaps.
Establish communication channels
Today, most customer interactions happen online. Thus, establishing digital communication channels has become crucial. This allows customers to interact with the company directly at their convenience. It is especially useful in the current situation where companies are working with reduced staff and social distancing is encouraged. Financial companies can integrate messengers and chatbots on their portals and apps and even create a digital support system for easy communication with customers. That will also help in building great customer experience as customers can directly interact with advisors digitally and get faster solutions to their queries.
Use digitized tools for enterprise services
A financial services company can grow to the next level only if it leverages digitization for its operational and enterprise processes. Digitization of such enterprise tasks can help financial services companies turn more customer-centric. This can help companies manage accounts, the HR systems, and getting an end-to-end picture of the customer journey and every touchpoint. In the current situation, digitized tools will help financial companies manage different functions efficiently with fewer resources.
The best way to leverage the DAG scheme is by taking steps towards full digitization. In that context, creating a great digital customer experience with Digital Front-Office solutions would help small financial services companies grow to the next level. Such a full suite of enterprise services would include digital onboarding, regulatory management, CRM management, and other tools to help companies manage their digitization process effortlessly.
Considering that the DAG scheme encourages companies to embrace digitization, these could be the right solutions to benefit from the scheme. That can help ambitious financial services companies become digital-ready for a better future.