Cybersecurity a top priority as banks turn toward digitalisation, innovation

Cybersecurity a top priority as banks turn toward digitalisation, innovation

By: 
Stanislaus Jude Chan
30/01/18, 03:37 pm

SINGAPORE (Jan 30): Close to nine in 10 banks globally say addressing cybersecurity in the top priority in 2018, amid a shift toward digitalisation and innovation for future growth.

To this end, some 73% of banks around the world are planning to invest in technology to mitigate cybersecurity threats, according to the EY Global Banking Outlook 2018 released today.

The report surveyed senior executives at 221 banking institutions across Asia-Pacific, Europe, North America and emerging markets. These include nine banking institutions in Singapore.

“As the pace and scale of technological change reaches hyper innovation, banks must handle increased levels of complexity that blur the perimeters between internal and external risk,” EY says in the report.

“In addition to cyber risk, technological change risk expands as new technologies are onboarded and brought to scale, while financial crime risk, and reputational and conduct risk become increasingly mired,” it adds. “Managing these developing risks is key to maintaining high levels of digital trust.”

The focus on cybersecurity comes as 85% of banks say the implementation of a digital transformation programme will be a business priority for 2018.

According to EY, investment in technology to drive efficiency and growth as well as manage evolving risks is seen as critical for sustainable success.

To successfully insulate themselves against the impacts of future downturns on financial performance and business continuity, EY says banks must complete the transition from regulatory-driven transformation to innovation-led change and become more digitally mature.

Globally, an average of 62% of banks say they aspire to reach digital maturity by 2020.

“Asia-Pacific has a much higher penetration of digital and mobile technology adoption than many other regions,” says Jan Bellens, EY Global Banking and Capital Markets’ deputy sector leader.

“Mainland China, for example, has the highest rate of fintech adoption in the world and many of the big cities there are effectively operating as cashless environments,” he adds. “Compare this with the US, where cheques are still prevalent, and the relative benchmarks for financial digital maturity look quite different.”

In addition, the survey found that banks in developed Asia-Pacific markets, such as Hong Kong, Australia and Singapore, are focusing on developing partnerships with fintechs, investing in technology to reach customers and improving risk management.

Some 82% of respondents in the region list these as their top business priorities for 2018.

“The majority (75%) of banks in the developed Asia-Pacific markets and half (50%) in emerging markets also stated they are planning to set up new partnerships or JVs in their core markets in 2018. So, we are likely to see greater collaboration between Asia-Pacific banks and e-commerce or other technology platform players, particularly as open banking reforms progress in markets such as Australia, Hong Kong and Singapore,” Bellens says.

Mapletree Logistics Trust posts 5.0% increase in 3Q DPU to 2.002 cents

SINGAPORE (Jan 21): The manager of Mapletree Logistics Trust (MLT) recorded a 5.0% increase in its 3Q18/19 DPU to 2.002 cents, compared to 1.907 cents in 3Q17/18. This brings 9M18/19 DPU to 5.917 cents, 4.2% higher than 5.681 cents in 9M17/18. The trust posted gross revenue of $120.8 million in 3Q18/19, 23.0% higher than $98.2 million a year ago, mainly attributed to higher revenue from existing properties, contribution from the completed redevelopment of Mapletree Ouluo Logistics Park Phase 1 in 2Q FY18/19, acquisitions in Hong Kong completed in FY17/18 and acquisitions in Singapore, Au....
Read More >>

Keppel REIT posts 4.9% lower 4Q DPU of 1.36 cents

SINGAPORE (Jan 21): The manager of Keppel REIT has declared a 4Q18 distribution per unit (DPU) of 1.36 cents, representing a 4.9% decline from its quarterly DPU of 1.43 cents a year ago. This brings the trust’s FY18 DPU to 5.56 cents, down 2.5% from its DPU of 5.7 cents in FY17. Property income for the latest quarter under review fell 14.8% to $37.8 million from $44.4 million previously due to lower income contributions from Ocean Financial Centre, 275 George Street and 8 Exhibition Street. Share of results of associates and joint ventures declined 14.7% and 7.7%, respectively, to $....
Read More >>

Soildbuild REIT posts 4.9% increase in 4Q DPU to 1.451 cents

SINGAPORE (Jan 21): The manager of Soilbuild Business Space REIT (Soilbuild REIT) has declared distribution per unit (DPU) of 1.451 cents for the 4Q18 ended December, some 4.9% higher than DPU of 1.383 cents a year ago. This brings total DPU for FY18 to 5.284 cents, some 7.5% lower than total DPU of 5.712 cents a year ago. Gross revenue grew 24.3% to $25.8 million in 4Q18, from $20.7 million a year ago. This was mainly due to the liquidation proceeds received from Technics Offshore Engineering, conversion of Solaris into a multi-tenanted property, and the maiden contribution from two ....
Read More >>