Connecting you to ASEAN’s Digital Future

 

Today, ASEAN forms one of the fastest developing economic blocs in the world. The explosive economic growth of the region is underscored by the rapid digitisation of the region, which is undoubtedly driven by a tech-savvy populace that is wholeheartedly embracing technological innovation.

This increasing digital adoption has naturally had significant implications on the way that consumers expect to pay, with methods such as real-time payment (RTP) networks, cards, QR codes and e-wallets becoming increasingly popular. In light of this, governments across ASEAN are introducing initiatives that will only intensify the popularity of digital channels and is expected to strengthen as the region deals with the COVID-19 pandemic.

The ASEAN Casebook details our experiences in ASEAN. Be it digitising payments in the Philippines and Vietnam, to future-proofing collections in Thailand and Malaysia, to reworking processes to support new business needs in Singapore and Indonesia.

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Case Study: Singapore Securities Trading Firm

Making client funds available for instant investment with Virtual Accounts (VA) Payer ID and automating reconciliation with enhanced MT910 messaging

Client Challenge

  • The company is a broker that provides online trading and investment services to investors across a range of securities and market instruments.
  • Investors in Asia Pacific were making an increasing amount of payments to their investment accounts through the instant payment systems that had recently launched in those jurisdictions. As a result, there was a growing expectation amongst investors that funds transferred through these instant payment systems would be made available immediately. This compelled the company to seek ways of expediting their receivables reconciliation.
  • A major outstanding issue stemmed from the fact that the company was not always able to identify the origin of incoming funds. The company would have to manually reconcile funds to their respective investment accounts, leading to delays. This meant that the funds would not be immediately available for investment as desired, leading to a poorer customer experience.

Transformation & Success

  • The solution devised by HSBC for the company combined the use of Virtual Accounts (VA) Payer ID with the provision of enhanced MT910 messages. The company chose to first make this solution available for its investors in Singapore. Firstly, the company’s investors were provided with unique VA numbers, which they could quote to remit funds to. When remitted to the VA, transferred funds were reconciled automatically and subsequently credited to the investor’s investment account. As a result, funds were now applied to accounts in less than 30 seconds, allowing the company to meet the demand from investors for near-instant availability of funds.
  • Additionally, the company’s MT910 messages now contained full remitter details, as well as the VA number for incoming cross-border payments, local domestic payments and book transfers. This helped improve visibility on received funds, and eliminated the need for manual reconciliation.
  • The VA solution’s expeditious reconciliation of investor remittances could also be easily scaled to match the expansion of the company’s business operations. The solution is currently being considered for rollout in other markets in Asia Pacific.

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