On 16th September 2024, CFTE had the privilege of hosting a highly engaging Fireside Chat featuring Olivier Crespin, a leader in digital banking and fintech innovation, known as the 4x Bank Builder. Joined by CFTE’s esteemed community of alumni, industry experts, and partners in Singapore, the event focused on Olivier Crespin’s remarkable entrepreneurial journey in transforming and building banks, and The Future of Banking: Embracing Digital Transformation. In an evolving financial landscape, this conversation offered invaluable insights into the intersection of customer experience, technology, and the future of finance.
Digital Banking: The Present and Future
The evening began with Olivier Crespin reflecting on how the world of banking has fundamentally changed. He spoke about how platforms outside traditional banking, such as e-commerce and telco companies, have increasingly ventured into financial services. This shift challenges banks to reconsider their approach to customer engagement. Olivier emphasised that today’s customers, especially those who were not using digital services a decade ago, now expect seamless transactions anytime, anywhere.
“People want access to information and the ability to transact wherever they are. This demand is forcing banks to undergo significant changes in how they operate”
Combining Traditional Banking with Digital Innovation
A central theme of the conversation was the difficulty in merging traditional banking DNA with digital innovation. Olivier highlighted the complex task of building a digital bank from scratch, balancing the needs of regulatory compliance and risk management, while fostering innovation and customer-focused product development.
“When you build a digital bank, you need to combine two very different DNAs. The banker’s DNA revolves around trust, regulation, and risk management. Meanwhile, the digital world is all about building products for customers—fast and efficiently. Combining these two is essential but challenging.”
He gave examples of how digital banks are focused on meeting the needs of customers more effectively, using advanced technologies like AI and data analytics. By anticipating customer behaviours, digital players have managed to build stronger, more personalised relationships with their clients—something traditional banks are working to achieve.
AI, Automation, and Risk Management
Olivier also delved into the role of artificial intelligence (AI) in transforming risk management and customer services in banks. For instance, AI-driven tools are already helping banks identify risks more efficiently, reducing the volume of false positives in compliance systems.
He further elaborated on the potential of AI and Large Language Models and their impact on financial institutions. These tools can help banks provide more accurate information and ensure that different teams have controlled access to data.
Blockchain and Decentralized Finance (DeFi)
During the discussion, Olivier addressed the potential of blockchain technology and DeFi to reshape banking. He touched upon how tokenisation of assets, for example in real estate, is providing new liquidity options for markets. He mentioned examples, such as real estate tokenisation efforts in the US, which are enabling more fluid asset markets.
Despite the opportunities presented by DeFi, the risks involved were also acknowledged, particularly when decentralisation leads to a lack of control, referencing issues observed in the past. He stressed the importance of balancing decentralisation with proper oversight.
Building a Digital Bank: Lessons and Challenges
As someone with experience launching digital banks, including the UAE’s first fully digital bank – Zand Bank, Olivier shared lessons from his entrepreneurial journey. One key point he highlighted was the importance of maintaining a lean team, especially in the early stages of building a bank.
“Keep your team small for as long as you can. Once your team grows larger, things start becoming more bureaucratic. It’s better to have a smaller team than a larger, underutilised one.”
He also spoke about the differences between working in digital finance in different markets, including Singapore and the UAE.
The evening was interspersed with a lively Q&A session where Olivier addressed questions about the future of digital finance. One audience member asked about the future of mobile wallets and how AI would shape this space. Olivier shared an interesting perspective, citing some projects that are using gaming to educate younger generations on financial literacy.
“I didn’t know this, but there are 3 billion gamers worldwide. There is a concept to integrate finance education into gaming, progressively teaching young people about saving, investing, and managing their finances, all while they level up in a game. It’s an interesting way to connect with a younger audience”.
Another question centred on the potential for collaboration between traditional banks and digital banks. Olivier pointed out that while digital banks are nimble and customer-focused, traditional banks still have the advantage of capital strength. He emphasised that, moving forward, the two types of institutions will likely work together to address financial inclusion and other pressing issues in the sector.
As a fitting conclusion to the evening, CFTE Co-founder Tram Anh Nguyen invited Olivier and the audience to answer one final question: “What is your most ambitious hope for the future of finance?”
Olivier responded by expressing his desire to see the right balance between technological innovation and regulation. He voiced concerns about how, in the future, digital currencies could be overly controlled, with potential implications for individual freedom. However, he remains optimistic that innovation will continue to drive financial inclusion, bringing opportunities to underserved populations globally.
Our heartfelt thanks to Olivier Crespin for sharing his expertise and inspiring new ideas for the future of banking. We are also grateful to our CFTE community for their thoughtful contributions and active participation. As the future of finance continues to unfold, CFTE looks forward to more exciting conversations and events that shape the next generation of financial innovation.
Stay tuned for more events and knowledge-sharing opportunities from CFTE, in Singapore and beyond!
