EY Customer Segment Offerings

EY Customer
Segment Offerings
Financial Services
February 2019
For internal use only

Migrant Workers
PersonalLoans
Financial
Management
Remittance
Global trends
Context:
A bank based in Southeast Asia is seeking ways to provide an extensive suite
of financial services designed to meet the typical everyday needs of migrant
workers.
Opportunities: Worldwide, cross-border remittance has grown 600% in the last
two decades. The top global remittance country is India, where US$70 billion
flowed, with China second at US$64 billion. Developing countries received over
75 per cent of US$636 billion remittances in 2017. The World Bank estimates
that if the cost of remittances could be reduced by 5 percentage points relative
to the value sent, recipients in developing countries would receive over US$16
billion more each year than they do now.
Recommended solution:
The bank has developed an all-in-one mobile banking solution which includes:
• Verification of salary disbursement, tracking of incoming and outgoing
transactions, and integration of digital payments and wallets into the app.
• Remittance services that allow migrant workers to transfer funds to
predefined recipients without having to go through a manual process.
• Other on-app services: Sales of telecommunication services, group
insurance for migrant workers, and discounted airfares back to their home
countries.
More demand for mobile solutions for migrant workers
Mobile and online P2P global remittances will exceed
$300 billion by 2021, a 33% increase from $225 billion
in 2018, forming 61.8% of all migrant worker
remittances in 2018.
Digitally-savvy migrant worker
population signifies increasing need
for mobile loan procedures that use
alternative credit scoring platforms.
Growing need for cost-effective, and
process-efficient remittance
methods.
Rising necessity for time-efficient
deposit processes, with personalized
user-interfaces for migrant workers.
Client impact:
• Increased efficiency with the removal of manual verification and physical
contracts.
• Increased customer satisfaction with streamlined payment system and
digital financial services.
There are almost 164,000,000 migrant
workers today, and numbers are projected
to increase.
As trends move towards embracing digital
lifestyles and open attitudes towards
migration, there is an increasing demand
for digital solutions catering to the
specific day-to-day financial needs of
migrant workers.
Professionals, managers and executives
White-collar
workers
Blue-collar
workers
Capitalize on smart contracts that
accurately, securely, and
instantaneously credit the correct
salary into bank accounts on payday
itself.
Digital, one-stop mobile solutions that
allow FIs to bypass agent-send networks
making remittance for migrant workers
instantaneous and cost-effective.
Hassle-free, secure, and accurate on-
mobile microfinancing platform for
migrant workers that disburses loans
they qualify for via psychographic
digital footprint tracking.
Varun Mittal
EY Global Emerging Markets
FinTech lead
varun.mittal@sg.ey.com
Contact Us:
FinTech Hub
www.ey.com/sg/FinTechHub
Growth in the number of global migrant workers
2013
150,000,000
2017
164,000,000
Opportunities in the market segmentCustomer segment profile Case Study
How can FIs help?Addressable needs

Small & Medium Enterprises (SMEs)
Opportunities in the market segmentCustomer segment profile
Global trends
Context:
A bank is looking into issuing loans to online retailers. However, it is difficult to
assess the credit risk of SMEs without data points.
Opportunities:
Over 67.8% of SMEs prefer non-traditional financing options. Banks are moving
towards offering peer-to-company (P2C) loans by coming up with specialized
loans for SMEs.
• Partner with online retailers and offer loans to sellers on those platforms.
• Lenders must have conducted some transactions before they are eligible
for the loans.
• Loan payment will be collected by deducting money monthly form the
seller’s account.
• In the event where the lender is unable to repay loans, their inventory will
be liquidated and sold off to recoup the money. Money can also be recouped
directly from the lender’s bank account or credit card.
Case Study
Increasingly, SMEs act as engines of
economic growth and laboratories for
innovation - helping to build modern
economies that improve people’s lives.
This is especially true in Emerging
Markets (EMs) where SMEs account for
80% of jobs and 33.3% of GDP.
However, SMEs face high barriers in
accessing finance to scale their
businesses.
Formal Micro (<5 FTE) 18%
Formal SME (>5 FTE) 7%
Estimated no.
of SMEs in EMs
(365-445m)
SME
Informal 70%
Varun Mittal
FinTech lead
Contact Us:
FinTech Hub
LoansAccounting
Rising demand for automated
accounting processes such as
reconciliation and expense reporting.
There is a growing need for SME
loans that do not require collateral.
One-stop platform for all SMEs needs
including invoicing, submitting
expenses and bank reconciliation using
an app.
Assess credit risk via alternative
credit scoring using aggregators such
as information collected from
retailers.
Client impact:
• Total loan amount being disbursed in a year: USD $1 Billion.
• Eliminate risk of default by liquidating assets of lenders.
Insurance
Growing need for cost-effective
insurance management solutions
catered to SMEs.
Provide customizable modular
insurance based on the size, budget
and needs of the company, while
automating claims for a seamless user
experience.
70% of all SMEs
in EMs lack
access to credit
82% of SMEs in
ASEAN prefer to
invest in technology
as a means to raise
productivity
Of which, 78%
would prefer
business-
oriented tools
(i.e. Accounting
management)
82%70% 78%

Entrepreneurs
RaisingCapital
Automate payments to ensuring
timely cash inflow from
customers using ledger
technology.
One-stop digital solution that
manages company finances
including forecast adjustment
based on intrinsic and extrinsic
factors.
Financial
Management
Insurance
Global trends
From young to old, there is a rise in the
number of people interested to start their
own business. Currently, there are 400
million entrepreneurs in the world.
Context:
A bank was looking for a solution to offer funding to entrepreneurs with
inconsistent revenue stream and a small amount. It is difficult to assess the
risk of providing loans to budding entrepreneurs with no past track records. It
is also time consuming and slow to utilize paper business loan application.
Opportunities:
Median year-on-year decrease in bankruptcy rates stood at an average of 7.5%
since 2012, reflecting improved economic climates for entrepreneurs.
We recommend utilizing a digitalized loan application process which allows
loans to be applied online, providing convenience to busy entrepreneurs.
• Every loan application will automatically run through a bank’s risk model.
• Detailed reports are generated for lenders to monitor borrowers loan
activity and credit spread.
Increase demand for alternative
forms of credit scoring for new
entrepreneurs who may experience
income volatility, and have
insufficient collateral.
67% of entrepreneurs cited the lack of
capital and cash flow management as
their the top concern.
Entrepreneurs may not be able to enjoy
benefits full-time employees have, such as
insurance plans which is often at the back
of their mind.
Loan Approvals
41% of business
owners do not
have life
insurance.
Big Banks
Small Banks
Institution
lenders
24.3%
26.1%
48.7%
49.6%
63.8%
64.8%
June’17 June’18
66% of the people
worldwide think
entrepreneurship is
a good career
choice.
77% of small
business rely on
personal savings
for their initial
funds.
77%
41%
66%
Growing need for cost-effective
insurance management solutions
catered to entrepreneurs.
Provide customizable modular
insurance based on the size,
budget and needs of the
company, while automating
claims for a seamless user
experience.
Automatic and accurate
evaluation of entrepreneurs’
risk by analyzing their digital
footprint.
Increased profitability for
banks to provide loans to
entrepreneurs by converting
their illiquid assets to digital
assets.
Increasing need for a convenient and
hassle-free cash flow management
solution that improves
entrepreneurs’ bargaining power.
Varun Mittal
FinTech lead
Contact Us:
FinTech Hub
Client impact:
• Improved customer satisfaction with efficient and simple loan application
process.
• Reduced time taken for loan applications and approvals from hours to
minutes.
• The automated decline function frees up loan officers time.
• Remove the need for bank’s customers to physically visit a branch office to
apply for loan.

The Future Silver Economy
Global trends
Context:
A bank is looking to make banking services more reliable and secure for the
elderly through guarding them against identity theft, as well as help them
manage their finances in a personable yet efficient fashion.
Opportunities:
The global silver economy is estimated to be valued at $15 trillion by 2020.
• Integrating a machine-learning solution that understands the specific
customer’s financial profile, and identifies any suspicious behavior which
differs considerably from his usual financial activity.
• In the event where there may be suspicious behavior, alerts are
automatically sent to trusted family members, lawyers, or advisors.
• The machine-learning solution is able to understand financial behavior,
such as whether an individual is a net saver or net spender, and provides
financial planning and investment advice following the analysis.
The 'Silver Economy’ traditionally refers
to older people between 65 and 75 who
retired.
Insurance
Financial
Management
Investments
Burgeoning elderly population
requires convenient insurance
solution with user-friendly interface
catered to their needs.
Increased demand for customized
portfolio management for elderly as
they age and develop health
complications.
Simplified, voice-activated, one-stop
claims solution which can share
receipts with insurance company and
provide customer service support.
Real-time, 24/7 interface to explore
financial planning in a cost-effective
way, built on a secure platform that
monitors clients’ financial activities,
identifying signs of exploitation or
anomalies.
Provide a convenient and reliable
investment tracking tool that can
automatically rebalance their portfolio
with minimal monitoring.
In 30 years time, the number of people
aged 60 years or over would have
doubled. Over half of the those aged
below 30 years are worried about growing
older.
Globally, population aged 60 or over is
growing faster than all other age groups.
Growth
They are often concerned about saving
up for their retirement fund and health
implications that may arise from ageing.
Additionally, the number of people with
dementia worldwide is expected to
increase to 82 million in 2030. This
creates concern for their financial
management as they age.
Rising importance of secure, easy-
to-use and reliable banking services
provider for the elderly as they are
susceptible to identity theft.
Varun Mittal
FinTech lead
FinTech Hub
Client impact:
• Earned the trust of the elderly clientele as a bank that is able to make
transactions secure and efficient.
• Streamlined and value-added digital customer service for a new growth
market, enabling the bank to have a stronger market hold compared to
future competitors.
Contact Us:
Addressable needs How can FIs help?

Rural Agri-Laborers
Opportunities in the market segment
InsurancePaymentsFinancing
Customer segment profile
Debt profile – Thai farmers
Farming and Agricultural operations
employ 40% of Thailand’s 33 Million person
workforce, with an estimated contribution
of 10% to the national GDP.
Majority of the farms are family-run and
smaller in scale, making it difficult for them
to secure financing for their operations.
Context:
A financial institution was looking to implement a payment solution for one of
its major clients, a farming corporation with over 100,000 independent
farmers and 154 buying centers. Farmers would come to these buying centers
to sell their produce, and in return given cash. However this proved to be
problematic as on occasion, over €120,000 was being transferred daily,
leading to the potential of robbery, staff misappropriation of money, and the
added logistics of depositing large amounts of cash into bank accounts daily.
Opportunities:
Thailand’s agricultural export accounts for 8.4% of her GDP which amounts to
USD 38.2 billion.
Applicable solution:
• Implement a web based system that allows produce to be weighed, and
then processing payments to vendor accounts upon completion.
• Automate most of the sale process, by only requiring personnel to spot
check products for quality control before automatically weighing.
Case Study
These farms rely on outdated methods of
recording transactions and contracts.
A growing segment of agri-laborers
need flexible loan arrangements for
seasonal fluctuations in crop
produce.
One-stop mobile solution that records
terms of contract and automates
payments.
Digital ledger that records
transactions and contracts to build
trust between buyers and sellers.
A financial product that allows agri-
laborers to insure the most valuable
portions of their crops, hedging the
risk of a potential poor harvest and
minimize losses.
Rising need for crop insurance given
the wider variability in crop yield.
Implement a solution that allows agri-
laborers to instantly withdraw funds as
needed as opposed to a lump sum loan.
Varun Mittal
FinTech lead
Contact Us:
B$338
Billion
Average amount borrowed by
loansharks in a year to finance farm
operations and higher entry costs.
Accumulated debt for a rural-agri
farmers, due to high interest rate.
Estimated increase in average annual
income by 2037, stipulated in the
government’s “Thailand 4.0”
economic model.
B$21.59
Billion
700%
FinTech Hub
Client impact:
• Able to generate a credit score using historical earnings of farmers, which
can be utilized should they wish to apply for a bank loan.
• Increase bank efficiency by reducing the amount of cash the bank counts
and handles each day.

Students studying abroad
Global trends
With the world continuing to become
connected, more students have begun to
recognize the value of studying outside of
their home country, to gain a global
education, in addition to international
exposure.
Context:
A large bank was looking to provide a simplified banking solution for students
abroad, who often face difficulties managing their personal finances. The
implementation of a digital system would provide a seamless banking
experience at an affordable cost for them.
Opportunities:
Asian students account for 53% of all students studying abroad worldwide with
the cost of higher education abroad averaging around USD157,782. 45% of
parents would consider buying a property in their child's country of study and
this growing market requires financial services.
The bank is offering a mobile application tailored to the needs of travelers
which includes:
• 24/7 foreign currency conversion on the app at competitive foreign
exchange rates by tracking the rates and converting them in real-time.
• Ability to top up the card wallet easily through the app or online.
• Enhanced security feature by allowing the card to be locked remotely via
the app when it is lost.
• Hold multiple currencies to avoid hidden charges by transacting in local
currency.
• Withdrawals can be done overseas at selected ATMs.
• Travel insurance available for purchase.
Study Abroad Destinations
• There are currently almost 5 million
international students globally today
• By 2025, it is projected that that number will
rise to over 8 million
• 53% of current global international students
originate from Asian countries
As a result of moving to a foreign
country, there are inconveniences and
hurdles that these international students
face.
All Other
Countries
52%
U.S.A 17%
U.K 13%
Australia 6%
France 6%
Germany 6%
InsuranceSavingsPayments
Multi-currency card which allows
storing of different currencies and
offers competitive exchange rate.
Increasing number of students
studying abroad imply a greater need
for cashless solution such as debit
cards.
Growing need for insurance policies
tailored to students studying
abroad such as insurance covering
lost or stolen items.
Bite-size travel insurance policy
options available for students to
purchase their desired level of
coverage.
Rising demand for international bank
accounts in country of education.
Cross border accounts, with the ability
to utilize a singular bank account in
several countries and hold several
currencies.
Varun Mittal
FinTech lead
Contact Us:
FinTech Hub
Client impact:
• Increase suite of services available for students studying abroad, providing
them a convenient and affordable banking option.

Non-profit Organizations (NPOs)
Global trends
Context:
A bank is looking for a solution to provide increased transparency in the
donation process made by the donors to the NPOs’.
Opportunities:
From 2012-2018, online donations worldwide increased year-on-year at an
average of 10.7%, cumulatively adding up to USD 149.1 billion.
It is recommended that the FI utilize digital technology to prevent international
aid payments fraud.
• A cloud-based, end-to-end digital payments solution can be created to
provide a secure, private and fully-traceable service.
• Currency exchange can be done by the banks to eliminate the high foreign
exchange and bank fees.
• All transactions are traceable and permanently recorded in the platform.
• Fraud detection and protection programs are also included in the system.
Client impact:
• Decrease in the cost of cross-currency payments through optimization of
bank and foreign exchange fees.
• Increase transparency of donations through payment tracking system.
Non-profit Companies
Charities
Religious
Organizations
Transparency
NPO’s heavy
reliance on
public funding
demands
greater
transparency
in donations.
Time
Due to the
nature of the
non-profit
industry,
raising funds is
a recurring
struggle for
them.
Traceability
30% of money
donated as
foreign aid is lost
to corruption and
fraud, according
to the United
Nations.
40% of
Millennial
donors are
enrolled in a
monthly giving
program.
25% of donors
complete their
donations on
mobile
devices.
31% of donors
worldwide
donate to
NPOs outside
their country
of residence.
25%
InsuranceLoansCollections
Provide a affordable and transparent
and traceable solution to transfer
money overseas allowing
customization of payments frequency.
There is a growing need for group
insurance policies by NPOs without
P&L statements.
Insurance policy tailored to the needs
of NPOs.
Rising necessity of NPO-tailored
loans for acquisition, construction
and equipment.
Assess creditworthiness of NPOs by
analyzing their payments footprint,
such as rent and utility bill payment.
Increased desire by the public and
NPOs for cost-effective collection
solutions that offer a greater level of
auditability and traceability of
donations.
Varun Mittal
FinTech lead
Contact Us:
FinTech Hub
40%31%

Gig Economy Workers
PersonalLoans
Financial
Management
Insurance
Global trends
Context:
A bank wanted to target gig workers who didn’t qualify for loans under
traditional credit scoring systems used to assess the risk of lending to
individuals. Acknowledging that these were potentially healthy clients, the
bank was losing >90% of them to unconventional competitor such as P2P
lenders because of the lack of customer information.
Opportunities:
49% of gig workers are interested doing digital-enabled work. While 47% of gig
workers sell goods and services on platforms such as Carousell, 43% drive cars,
24% share online content or videos and 11% have set up a start-up.
To increase the number of loans disbursed for these underserved individuals, it
is recommended that the bank develop an alternative credit scoring rubric for
gig workers:
• Integrate a FinTech solution into the client’s mobile to collect their digital
footprint.
• The solution tailors a set of smart credit criteria rules based on bank’s
preference and gig worker’s mobile usage pattern on their phones.
Increased preference for
easy-to-use, digital
insurance platforms that
offer flexibility and breadth
specific to their on-the-job
risks.
Require an on-the-go,
portfolio management
solution that suits their
dynamic schedule and risk
appetite.
Digital nomads require low-
cost and convenient cross-
border transactions
solutions.
Client impact:
• Significant increase of loans disbursed with a delinquency increase of only
2.3%.
• User adoption reached 78% by the end of the trial.
• Reduced need for manual check as processing time is shortened by hours.
• Maintain FTE count for loan processing even when loan application
increase.
Ride-Hailing Drivers
Digital
“Influencers”
Entrepreneurs
From ride-hailing app
drivers to tech
entrepreneurs, there
is a rise in the number
of people working in
the gig economy. 33%
of global workforce is
opting for gig-
economy work.
While the gig economy
offers flexibility and
independence, income
is volatile and “gig”
workers do not enjoy
the same benefits as
employees in large
companies do.
Global motivations for gig economy
Primary Income
Interim Income
(between jobs)
55%
22%
19%
Supplementary
Income
50% of organizations report significant
increase in the use of gig workers over the
last five years
36% of employees in APAC may lose access
to health protections
97% of the gig economy workers are likely to
stay for more than 2 years
Optimize premium pricing for
each individual by providing
telematics insurance.
Digitally deliver usage-based
insurance tailored to gig
workers’ lifestyle.
Offer short-term, flexible
loans by analyzing their
digital footprint.
Simplifying loan application
process across all channels
by leveraging on mobile
applications.
Mobile-first and wealth saving
platform using auto portfolio
rebalancing based on
investors’ risk appetite.
Utilize remittance platform to
make cross-border
transactions simple and
affordable.
Varun Mittal
FinTech lead
Contact Us:
FinTech Hub
Burgeoning demand for
alternative forms of credit
scoring for gig workers as
they experience income
volatility.
50%
36%
97%

58464
70939
99378
132161
USA
Singapore
UAE
Hong Kong
SINKs & DINKs (18-49 years old, no kids)
Global trends
Average spending on child‘s education (in USD)
Housing
Wedding
loans
Childcare
expenses
Newly Weds often find it a struggle to
manage their finances. After paying off
their wedding and honeymoon, they have
to consider housing and education costs,
should they have children.
Couples are not planning their outlay
properly before they have children.
Context:
A banking financial company is looking to provide personal loans for consumers
online without heavy documentation, which is often needed for large ticket
loans. Couples who wish to obtain recurring loans online instantly would be
attracted to use this platform.
Opportunities:
Globally, the percentage of women having a two-child family had fallen by 7 per
cent in 20 years. In Thailand, childless couples form 16% of all Thai families due
to the rising cost of living and desire to improve discretionary income.
It is recommended that the bank utilize an online loan platform allowing
customers to obtain recurring loans while improving their credit worthiness.
• Self-learning chatbot allows application, document submission and loan
approvals to be on the website, messenger and on the application.
• Customers empowered to repay loans swiftly and timely by creating a
seamless payment solution, allowing loans to be repaid online or on the
application.
75% of parents rely on their day-to-day income
to fund their children’s education rather than on
longer-term investments and savings.
61% of engaged couples plan to charge their
expenses to their credit card.
PersonalLoansFinancialManagement
Increasing focus on growing
their retirement funds
especially for couples not
planning to have children.
Growing need for a
convenient investment
portfolio and financial
management solution,
including saving up for an
emergency fund.
Customize loans for young
couples’ lifestyle and
housing needs.
One-stop solution that includes
budgeting and expense control,
providing 24/7, real-time
monitoring.
Tailor loans for young couples
by analysing their digital
footprint to understand their
needs.
Automatic and accurate
evaluation of young couples’
risk by analyzing their digital
footprint and transaction
history.
Client impact:
• Reduce operating cost of bank due to faster turn-around time using cloud
based technology.
• Increase loans available for customers who are borrowing short-term for
everyday uses due to faster turn-around time.
Varun Mittal
FinTech lead
Contact Us:
FinTech Hub
Provide a convenient
investment tracking tool with
the ability to automatically
rebalance the portfolio.
Increase demand for
alternative forms of credit
scoring for young couples
who need to take on
multiple, customized loans.
75%
61%

Singapore National Service Full-time (NSF)
Insurance
Opportunities
As per 8th December 2018 estimates, there
are 45,800 NSFs serving in the military.
These NSFs receive equitable monthly
allowances, and are covered under an
existing MINDEF/MHA group insurance
scheme.
Context:
A global financial services group was looking to expand it’s customer base by
offering a mobile, on-the-go insurance scheme for military personnel. However,
they recognized that these military personnel were regularly on the move, and
many soldiers, sea men and air men go for tours and deployments in far-away
regions for months at a stretch. Furthermore, some of these military personnel
already had disabilities that were a direct result of war, and the group wanted
to create a seamless banking/insurance experience for them.
• It is recommended for the group to set up a separate mobile channel for
military men and women who only have access low-bandwidth internet, one
that keeps the essentials of a mobile-banking/insurance solution.
• Furthermore, injured veterans i.e. visually impaired soldiers can deposit
checks using voice-guided Natural Language Processes (NLPs) features on
their mobile devices.
Client impact:
For clients who installed the white-labelled application and agreed to the
data collection
• Serve military personnel who previously did not have access to
conventional business solutions while they were on military tours.
• Increase customer satisfaction with streamlined digital financial services
for their military clients.
• Remove high-bandwidth internet requirements, improving accessibility to
financial services for soldiers on the go.
However, the lack of accessibility and
flexibility with current financial solutions
limit the value provided to the NSF and the
FIs.
Republic of Singapore Air Force
Republic of
Singapore Navy
Republic of
Singapore Army
$27,400
$22,100
$17,060
Estimated earnings for an NSF (22 months)
Cumulatively, the estimated earnings of all
military NSFs over the period of their 2 years
would total to SGD $895,506,800
Estimated earnings for a combat
specialist
naval Diver/Commando/Officer
enlistee
Leveraging on data-centric solutions
to gather non-confidential data that
optimizes premium prices based on
the NSF’s digital footprint and their
pre-assessed vocational risk.
Increased preference for easy-to-
use, digital insurance platforms that
offer flexibility and breadth in terms
of coverage, beyond just life,
disability, and accident.
Growing insurance needs for NSFs
who require follow-up insurance
solutions after their tenure of service
(for health conditions that arise in
their line of service)
Burgeoning demand for insurance
schemes that offer tailored plans,
covering vocation-specific risks and
responsibilities.
Seamless and customized insurance
plans for servicemen that follows
through beyond their Operationally-
Ready-Date (ORD).
Digitally assisted, one-stop solution
for servicemen to share reports with
the insurer, from wherever they are in
the world.
Varun Mittal
FinTech lead
Contact Us:
FinTech Hub

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