Ivan has more than 30 years of experience in the IT industry, helping Hong Kong enterprises to grow through the use of technology. He manages a team that serve major enterprises customers, enabling innovation through enhanced IT infrastructure and latest technologies, like big data, IoT and AI. He also develops the strategic alliance strategy for JOS to broaden its technology offerings.
Shaping the Fintech Frontier with Easy Tech Refresh
DaaS facilitates digital transformation with easy device management and flexible IT budgeting
More businesses are keen to leverage technology to create a competitive edge and this sense of urgency is even higher for financial institutions with the rise of fintech. According to PWC’s Global FinTech Survey 2016, 76% of the global banking executives fear some part of their businesses are at risk and disrupted by fintech.
This fear in Asia is turning into a motivation to transform. EY’s Banking Outlook 2018 report stated that 60% of banks in Asia are aspired to be digitally mature or becoming a digital leader by 2020. Part of the process to reach maturity is to bring more personalised and digitised services.
We are seeing banks in Hong Kong have started to embark on this journey. Standard Chartered Bank and Bank of China are some of the pioneers that launched their first wave of fintech investments.
Standard Chartered Bank’s digital teller, launched in 2014, enables the migration of complex counter services and customised financial consulting services to self-service terminals. The bank also plans to utilise digital tellers to reduce the physical size of branch to cut down rental cost. Similarly, Bank of China also introduced the first smart banking branch last year with new technologies to keep pace with the changing customer and industry requirements.
Despite the urge to transform in the banking industry, before introducing any digitised banking services, IT executives need to consider multiple factors.
Fintech initiatives like a smart banking branch requires revamping the branch’s entire operations with new processes, staff training, as well as new devices, terminals and related software. To handle technology refresh, the IT team can easily spend weeks to set up new devices and to manage old device disposal with data archiving and erasure.
In fact, an IDC report indicated providing support and update for hardware and software was one of the top three challenges for IT executives. Device management also accounted for 14% of the technology teams’ time.
To keep up with the accelerating growth of fintech services, many banks are also launching different pilot projects and hackathons to work with the local startups. These projects often last only for a few months, but buying new devices and software would increase CAPEX and extend the period for ROI.
As financial institutions strive to compete in the new fintech arena, IT leaders are shifting their roles from day-to-day technical support to leading an enterprise-wide innovation. To help CIOs realign their focus, more organisations are turning towards device-as-a-service (DaaS).
IDC analyst Tom Mainelli stated that 25% of the US companies are actively looking at DaaS. It’s not hard to see why when one drill down into the numbers. It could take a few hours to simply setting up a single device with new configurations and software installations. Multiply that by hundreds of employees in the entire organisation, you can have an IT managers’ nightmare for weeks.
In addition, as Microsoft is cutting off its support of Windows 7 by January 2020, banks are updating their operating systems to ensure security and compliance requirements. The hours and cost to update new operating systems further drive the demand of DaaS.
The option to flex-up or flex-down the number of devices in the contract also eliminates the hassle to handle and the cost to store idle devices. Our experience found that organisations can save up to 25% of device management cost with DaaS. This is also the reason why many banks are turning towards DaaS.
While DaaS is a service available in the market for years, it is often provided by the hardware vendors who support only their own branded devices. But most enterprises in Hong Kong invest in a wide variety of devices from multiple brands. Getting a consistent level of DaaS support across different brands and types of devices can be challenging.
Understanding the complex and heterogeneous environment in most enterprises, JOS DaaS supports multiple brands and different types of devices, including printers, monitors, digital displays and point-of-sale terminals. With more than 800 engineers in Hong Kong to pre-install software and device configuration, JOS also speeds up the device setup process from weeks into hours. A full product lifecycle is also available from day one of the device purchase, until its disposal.
With more Hong Kong enterprises, not only banks, are embarking on the journey of digitisation, technology refresh is going to be a critical part of this transformation. By providing an easy device management and flexible IT budgeting, DaaS will be a significant foundation for successful digital transformation.