Financial Service Industry
The financial services industry is the backbone of the global economy—fast-moving, tech-driven, and relentlessly competitive. It powers everything from personal banking to global markets, connecting capital with opportunity. In an era of digital disruption, fintech innovation, and rising demand for transparency and sustainability, the industry is transforming. Success now demands sharp strategy, regulatory agility, and a bold embrace of data, AI, and customer-centric solutions. It’s not just about managing money—it’s about shaping the future of finance.
Center for Global Financial Architecture - Fundamental Asia
Welcome to the most regulated industry
Financial product started to develop in the Middle Ages, when Medici in Italy established banking institutions and conducted financial transactions, including money lending, investments, and letter of credit services. In 16 centuries, the Renaissance period witnessed the emergence of modern banking practices when Bank of Amsterdam was established in 1609 as well as the Bank of England in 1694. At that time, the concept of central banking, reserve banking, and the issuance of banknotes emerged.
Geographical diversification started in the 19th century when banks began establishing branch networks, which communicated indirectly using telegraph. They can also coordinate their operation directly enabled by the growing railways. In the current 21st century, the geographical diversification is even larger with the revolutionary advancement in information and telecommunication industry. In ASEAN, the structure and stage of development of telecommunication industry greatly varies across countries in terms of different forms of deregulation, liberalization of markets and privatization of the telecommunications authorities. The leader country in banking industry on this region, Singapore, exercise rapid adoption of mobile payment solutions and digital wallets (Rahmi, 2022). Related to the bank product and services, the projected revenue in the smart finance market for ASEAN is expected to reach US$6.13bn by 2023, with a projected market volume of US$11.05bn by 2028. Since the banking industry is highly competitive and globally connected, we can compare this ASEAN with United States for example, which is projected to generate the highest revenue, amounting to US$10.28bn in 2023 (Statista, 2023)
Electronic banking and computerization also helped the bank diversification in the way they operate. Automated Teller Machines for example, enabled customers to conduct basic transactions independently and remotely. Many banks offered more product variation in payment, money transfer, billing, and investment.
While the growing transport, internet, telecommunication, computation, and financial technology provide more room for the banks to diversify, it also increased the competition with the rise of non-traditional banking models. Fintech startups for example, emerge and leverage technology to offer innovative financial services, ranging from payment solutions to lending platforms. This neo-banking or digital banking or challenger banking, refers to a new wave of financial institutions that operate primarily online and deliver banking services through digital channels.
Open banking is the continuation of this process. In open banking system, the use of application programming interface (APIs) enabled third-party financial service providers with open access to consumer banking, transaction, and other financial data from banks and non-bank financial institutions. It is said that this revolutionary payment system greatly affects how the bank exercise diversification in the way they operate. With the widespread application of APIs, the situation is hugely different from earlier ages for example when primitive money in the form of shells made from metal and copper in China back in 1200 BC, or the first use of paper money in 1661 in Sweden following the first paper factory in Spain in 1150.
This evolution will continue and become more complex. All the pushes in competition, innovation, transparency, efficiency, processing time, accuracy, and safety will be larger issue in the financial sector; but now involves the non-banking entities. This keeps the research on bank or the financial sector diversification relevant and important and motivates our paper.
Center for Global Financial Architecture - Fundamental Asia
Financial Executive Exchange | FINEX
Center for Global Financial Architecture - Fundamental Asia
Fundamental Asia partners with financial authorities to strengthen regulation, supervision, and stability. We provide strategic advisory, technical solutions, and capacity-building to help regulators stay ahead of emerging risks and innovation
Policy Design & Regulatory Framework Development
Sound policies and clear regulations are the foundation of a stable financial system. Fundamental Asia supports authorities in drafting, reviewing, and modernizing regulatory frameworks, including licensing, prudential requirements, digital finance, and green finance policies. We bring deep technical expertise and international benchmarking to ensure frameworks are both robust and forward-looking.
Regulatory Technology (RegTech) Strategy & Implementation
Regulators themselves can harness technology to enhance efficiency and transparency. Fundamental Asia supports authorities in formulating RegTech strategies and deploying supervisory technologies (SupTech) for automated reporting, data validation, and analytics. We help bridge institutional needs with modern solutions, enabling smarter, data-driven supervision.
Supervisory & Risk Surveillance Systems
Effective supervision requires timely data, risk analytics, and structured workflows. Fundamental Asia helps authorities design and implement integrated supervisory systems—including off-site monitoring platforms, risk dashboards, early warning systems, and supervisory workflows. We tailor solutions to the supervisory model of each institution while ensuring scalability and regulatory compliance.
Capacity Building & Institutional Strengthening Programs
Sustained impact requires skilled regulators and strong institutions. Fundamental Asia designs customized training programs, knowledge frameworks, and institutional capacity-building plans for central banks and regulators. Our approach combines global best practices with local policy contexts to enhance supervisory skills, analytical capabilities, and leadership.
Macroprudential Policy & Financial Stability Tools
Central banks and FSAs need reliable tools to assess systemic risks and macro-financial linkages. Fundamental Asia develops macroprudential policy toolkits, stress testing frameworks, and systemic risk models. We combine data science with economic expertise to help authorities detect vulnerabilities early and calibrate macroprudential measures effectively.
Deposit Insurance & Resolution Framework Enhancement
Robust deposit insurance systems and resolution frameworks are essential for financial stability. Fundamental Asia assists deposit insurance agencies in reviewing coverage structures, fund management, payout mechanisms, and crisis resolution protocols. We support authorities in aligning with global standards (e.g., IADI Core Principles) while tailoring solutions to national contexts.
ESG, Green Finance & Sustainable Policy Integration
Authorities increasingly play a critical role in driving sustainable finance. Fundamental Asia advises on integrating ESG principles into regulatory frameworks, stress testing for climate risks, taxonomy development, and sustainable finance roadmaps. We help central banks and regulators lead the transition toward green and inclusive financial systems.
Digital Finance & Innovation Policy Advisory
The rise of fintech, crypto, and digital banking creates new regulatory frontiers. Fundamental Asia helps authorities craft enabling policies for digital innovation while managing risks. We support regulatory sandbox design, licensing frameworks for digital banks, crypto-asset regulation, and cross-border cooperation strategies—balancing innovation and stability.
Data Governance, Integration & Analytics for Regulators
Regulators often face fragmented data and legacy systems. Fundamental Asia works with authorities to design integrated regulatory data platforms, data governance frameworks, and advanced analytics capabilities. We enable authorities to collect, validate, and use data more effectively to support evidence-based policymaking and risk-based supervision.
Crisis Management & Contingency Planning Frameworks
Preparedness is key to managing financial crises. Fundamental Asia supports authorities in designing national crisis management frameworks, contingency funding plans, resolution playbooks, and inter-agency coordination protocols. We bring structured methodologies to strengthen resilience and ensure rapid, coordinated responses during systemic stress.
Center for Global Financial Architecture - Fundamental Asia
Fundamental Asia is a strategic consulting partner for banks, bridging business goals, regulation, and technology. We support the full project lifecycle—from strategy and design to vendor engagement, implementation, and capability building
Credit Scoring & Risk Analytics Engines
Accurate risk assessment drives sustainable lending. Fundamental Asia helps banks design or enhance credit scoring frameworks using both traditional and alternative data. We support model development, governance setup, and system integration to improve underwriting quality and portfolio monitoring.
Core Banking System (CBS)
Modernizing a bank’s Core Banking System is a high-stakes transformation that requires deep strategy, technology selection, and execution discipline. Fundamental Asia helps banks assess their current core, define future operating models, evaluate vendors, and oversee implementation. We bring a structured roadmap that minimizes disruption, aligns with regulatory expectations, and accelerates digital capabilities.
Cybersecurity & Fraud Prevention
With growing cyber threats and sophisticated fraud tactics, banks must strengthen their defenses without compromising customer experience. Fundamental Asia offers strategic cybersecurity assessments, fraud risk mapping, and solution implementation support. We help design layered defense architectures, SOC models, and real-time fraud monitoring frameworks.
Digital Banking Platforms
In the digital era, banks must deliver seamless, secure, and engaging online experiences. Fundamental Asia supports end-to-end digital banking initiatives—from customer journey mapping and channel strategy to platform design, integration, and go-live. We ensure digital channels are aligned with business growth targets, compliance standards, and user experience excellence.
Data Center & Cloud Infrastructure
Scalable and secure infrastructure is critical for banking resilience and agility. Fundamental Asia advises banks on data center modernization, cloud migration strategies, and hybrid setups. We help institutions navigate regulatory requirements, design robust architectures, and manage vendor engagements to ensure operational excellence.
Credit Bureau & Alternative Data Integrations
Access to accurate data is vital for credit decisioning. Fundamental Asia supports banks in connecting with credit bureaus and alternative data providers, designing data governance structures, and embedding insights into credit processes. We help unlock new lending segments while managing risk.
Payment Systems & Switches
Payments are the backbone of modern banking, requiring speed, security, and interoperability. Fundamental Asia provides advisory and project management support to upgrade or implement payment systems, including RTGS, ACH, card switches, and QR platforms. We align technology upgrades with regulatory standards and operational efficiency goals.
RegTech & Compliance Solutions
The regulatory landscape is increasingly complex, making compliance a strategic priority. Fundamental Asia assists banks in selecting and integrating RegTech solutions for AML, KYC, sanctions screening, and regulatory reporting. Our team ensures technology investments translate into real compliance effectiveness and reduced operational burden.
ESG, Green Finance & Sustainability Solutions
Sustainability is becoming a core banking imperative. Fundamental Asia assists banks in integrating ESG factors into strategy, products, and reporting. We help design green finance frameworks, measure impact, and align with global sustainability standards to strengthen reputational and business resilience.
Wealth Management / Investment Platforms
Serving affluent and investment clients requires specialized tools and advisory frameworks. Fundamental Asia supports banks in evaluating wealth platforms, integrating them with core systems, and developing advisory models. We bring expertise in digital wealth, portfolio analytics, and hybrid advisory strategies.
Trade Finance & Treasury Management Platforms
Trade and treasury operations demand accuracy, speed, and regulatory compliance. Fundamental Asia advises on platform modernization, process redesign, and integration with core banking. We support banks in improving liquidity management, client servicing, and competitive positioning in trade finance.
CRM Systems
Customer-centricity starts with a single source of truth. Fundamental Asia helps banks design and implement CRM solutions that unify customer data, enhance cross-selling, and improve service delivery. We align CRM strategies with business goals, ensuring technology adoption drives tangible commercial impact.
Customer Education Platforms
Building financially literate customers enhances trust and product adoption. Fundamental Asia partners with banks to develop educational content platforms and engagement strategies. We design initiatives that align brand positioning with social impact and financial inclusion goals.
Marketing Automation & Personalization
Banks need targeted, data-driven outreach to remain competitive. Fundamental Asia assists in selecting and deploying marketing automation platforms, integrating behavioral analytics, and designing personalized campaigns. We help marketing teams transform from mass communication to precise, performance-based engagement.
Loan Origination Systems (LOS)
Efficient lending begins with a streamlined origination process. Fundamental Asia provides end-to-end support in LOS implementation—covering requirement mapping, vendor selection, credit policy alignment, and rollout. We ensure systems reduce turnaround time, improve credit discipline, and enhance customer experience.