The financial services industry (FSI) today is poised for disruption. According to IDC, changes in consumer behaviour arising from the global pandemic, consumer perceptions, technological innovation and an inclination towards During MWC 2023, Jason Cao, CEO of Huawei Global Digital Finance shares Huawei\u2019s latest progress in digitalising financial services.\u2018everything digital\u2019 are expected to drive rapidly accelerating transformation in the sector. There is also a fast-growing push towards green solutions and sustainable finance, from legislative and regulatory requirements as well as investor and consumer sentiments.\n\nIn response to these changes, significant new trends are gaining ground within the industry. Organisations are increasing their use of cloud, digital technologies, and artificial intelligence (AI) to develop innovative new solutions for customer experience and personalisation, analytics, and payments, among others. Adoption of these technologies is, in turn, evolving financial services\u2019 customer experience (CX), enabling it to move from physical interactions to digital yet personalised experiences, while customer relationships shift from transactional to engagement-focused relationships that benefit from end-to-end, consistent cross-channel customer services. \n\nAs the FSI sector approaches a tipping point in digital transformation, organisations will need to undertake key changes to stay relevant and competitive in this fast-moving landscape.\n\nSix changes to make finance smarter and greener\n\nSpeaking at MWC 2023, Jason Cao, CEO, Global Digital Finance, Huawei, described six changes that have the greatest potential to \u201caccelerate changes and drive innovation\u201d within the FSI sector.\n\nAccelerating the Shift from Transactions to Digital Engagements\n\nBusiness models must shift from a mindset of serving on-demand transactional needs through \u2018financial\u2019-centric applications, toward digital engagement via \u2018lifestyle\u2019-centric, daily apps.\n\nTake one of the largest commercial banks in Thailand as an example. It deployed a lifestyle super-app alongside its existing financial super-app in a \u2018platform + ecosystem\u2019 model, which resulted in growing the 16 million transaction-focused users to 200 million customers across the region. Many are new-to-bank, enjoying a high degree of engagement as they use the super-apps on a daily basis. We see a similar success in Myanmar, where one of the country\u2019s largest banks launched its mobile payment super app in 2018. By 2021, there were nine million app users, with 310,000 merchants and 45,000 agents benefitting from the app\u2019s mobile payment system.\n\nAccelerating the Transition of Core Banking Functions to Cloud Native\n\nThe successes among the Southeast Asian banks conversely highlight a challenge for digital infrastructure: rapid growth of customer base and transaction volumes demand rapid scalability. Applications need to be modernised, and core systems and data migrated to cloud native to be ready for these requirements.\n\nIn 2022, Postal Savings Bank of China (PSBC), a bank with 650 million retail customers, transitioned from a monolithic core banking system to a cloud-native architecture using Huawei\u2019s cloud and GaussDB. The new system easily handles over two billion daily transactions, with up to 55,000 transactions per second at peak. An Indonesian bank also built its cloud-native digital banking system to achieve scalability for ten times its existing customer base. As Cao noted, the bank\u2019s customers \u201cgrew by 1,000 times in three years\u201d on their cloud-native infrastructure.\n\nAccelerating infrastructure evolution to "MEGA"\n\nAs infrastructure evolves, the respective advantages of cloud, storage, computing, network and optical systems can be integrated and optimised as a system. Huawei approaches this through the MEGA framework, combining multi-domain (cloud-network) collaboration, user experience, Green ICT infrastructure and an intelligent autonomous driving network. This infrastructure framework offers rapid cross-vendor configuration, low-latency and end-to-end automation capabilities, while reducing energy consumption by up to 80% per TB. \n\nAccelerating democratisation of data analytics and AI\n\nOrganisations in FSI are increasingly applying data analytics and AI in marketing, fraud detection, credit scoring, and operations. Data and AI have enabled institutions such as China Merchants Bank (CMB) to protect 3.2 billion transactions since 2016, while another major commercial bank in Shanghai is able to detect abnormalities in financial events with 99.99% accuracy. AI is also driving higher conversion rates through improved interactions and reducing mean time-to-resolution for customer queries.\n\nAccelerating real-time data analysis to unleash data value\n\nChina Merchant Bank (CMB), a leading retail bank with assets under management of over 10 trillion yuan, practices a \u2018data for everyone\u2019 strategy. The transition from T+1 to T+0 real-time data import, multi-tenant data warehouses, and elastic scalability are the basis of the strategy. Over 40% of the company\u2019s employees are active users on the bank\u2019s analysis platform. As a result of this quick and convenient access to data and analytics, real-time decision making, and real-time risk control within 20ms can be realised.\n\nAccelerating toward a cutting-edge AI brain\n\n\u201cChatGPT has shown the feasibility of generative AI applications,\u201d highlighted Cao, \u201cand everyone can use it,\u201d further raising the bar for in-depth, accessible AI applications. One of China\u2019s largest banks has, since 2017, been steadily building up their AI capability. Today the bank\u2019s AI brain can serve over 1,000 scenarios and provide over 10 million intelligent services.\n\nPowering digitalisation through innovation\n\nA deeply embedded culture of Research and Development (R&D) is the key to innovation. According to Cao, \u201cinnovation is in Huawei\u2019s DNA,\u201d with over half of the company\u2019s employees being R&D employees, and more than 10% of revenue is spent on R&D. In 2021 alone, US$22.4 billion was deployed for R&D, representing 22% of annual revenue. David Wang, President of the Enterprise BG, Huawei, stated the company will \u201ccontinue to lead innovation in digital infrastructure, and adapt technologies to different scenarios.\u201d\n\nThis consistent investment in innovation has made Huawei a key technology partner for global FSI institutions. The company counts more than 2,500 financial institutions from more than 60 countries as customers, including 50 of the world\u2019s top 100 banks. Huawei also works with over 150 global partners to develop solutions and provide comprehensive services to their customers.\n\nBy working closely with partners and customers across the world, the company aspires to Shape Smarter, Greener Finance Together. Huawei will be hosting its 11th Huawei Intelligent Finance Summit in early June to unveil and showcase more innovations.\n\nLearn more about Huawei\u2019s approach to Intelligent Finance here.