The financial services revolution continues to gain momentum and Ant International has identified artificial intelligence (AI) and Web3 as crucial drivers of innovation.

“Our priority remains driving inclusive and sustainable growth through innovation in financial services,” said Douglas Feagin, chairman of Singapore-headquartered payments and digital financial services provider Ant International.

Advances in Web3 technologies, for example, will support more innovations in tokenized bank deposits, making global funds transfers and liquidity management safer and more efficient.

Web3, which is still in its infancy, refers to a decentralized Internet where users have more control over their data and interactions.

At the same time, wider adoption of AI will improve risk management and help small businesses manage their currency exposure. AI will also enable greater personalization of digital services, he said.

Backbone of innovation

AI powers Ant International’s diverse businesses, supporting its five core technology pillars: credit, platform, payment, risk and portfolio.

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“Over the years, we have continued to leverage AI to not only improve the efficiency and security of transactions, but also enable merchants to realize greater savings and experience greater stability” , Feagin said.

One example is the company’s AI-driven FX engine, which Feagin says forecasts FX demand with high accuracy by hours, days and weeks.

This helps merchants reduce their working capital requirements and manage exchange rate fluctuations, providing more predictability and cost savings in international transactions.

When it comes to risk management, Ant International’s AI systems can detect deep fakes, helping businesses prevent fraud, identify suspicious customers, and mitigate risks such as money laundering and credit card fraud.

Its credit technology solutions also help lenders assess the creditworthiness of small and medium-sized enterprises (SMEs), expanding their access to financing (see story below).

Promote partnerships

When asked about industry consolidation, Feagin noted that payments is a large space, allowing different players to meet different needs.

“Ultimately, it comes down to customer centricity and the value each player delivers to consumers.”

Leading fintech players in the region have also evolved beyond payments, integrating services that meet everyday needs like travel and financial services.

Feagin highlighted Ant International’s commitment to working with regulators, banks, other fintechs and other ecosystem players “to create a better, digital future.”

The company’s Alipay+ partner ecosystem includes more than 30 payment apps. In Southeast Asia, its partners include Touch ‘n Go eWallet in Malaysia, GCash in the Philippines, TrueMoney in Thailand and OCBC Bank in Singapore, which use Alipay+ technologies to enable overseas payments.

At the upcoming Singapore FinTech Festival, Ant International plans to announce developments such as:

• An expansion of Alipay+ merchant coverage in popular travel destinations;

• A new SME payment product;

• New integrated financial services partnerships; And

• A sustainable development initiative to support micro, small and medium enterprises (MSMEs).

Regulators play a critical role in fostering an environment that encourages both the development and adoption of AI solutions, Feagin noted.

He sees regulators playing two roles: “(First) as a platform to encourage a climate of high trust to give innovators the space and confidence to push technological boundaries.

“And (second) as an arbiter to facilitate consensus on values ​​and standards that will inform the sustainable and ethical use of AI.”

“We believe that innovation in financial services will unlock great opportunities within communities and across the value chain,” he said, “and the only way to do this is to collaborate. »

Supporting SMEs

SMEs are at the heart of Ant International’s concerns. “They are the backbone of the global economy,” Feagin said.

“When they succeed, we all benefit, which is why many of our innovations are particularly focused on empowering this segment of businesses. »

Ant’s initiatives for SMEs aim to help them:

Reach the whole world

• Its Alipay+ cross-border payment solution enables 90 million merchants worldwide, including many SMEs, to accept payments via QR codes from overseas customers. In Singapore, Alipay+ transactions via SGQR – the country’s unified payments code – among street vendors increased by 52% in the first half of 2024 compared to the previous six months, according to Ant International.

• WorldFirst, its digital payments and financial services platform, supports more than 1 million SMEs, facilitating international payments in more than 200 markets with more than 100 currencies.

Transform yourself digitally

• Payments and merchant scanning provider Antom, a subsidiary of Ant International, connects merchants to hundreds of payment methods, including Alipay+ partner mobile wallets. It supports traders from over 40 markets.

• Antom’s D-store solution helps merchants, especially SMEs, create online stores, launch them on regional mobile wallets, and integrate online and offline operations. More than 5,000 stores in Southeast Asia have used this solution.

Access financing flexibly

• Anext Bank, Ant International’s digital wholesale bank in Singapore launching in 2022, and bettr, its global digital lending service, provide integrated financing options for MSMEs.

• Anext Bank allows business owners to create an account virtually and offers loans ranging from S$5,000 to S$500,000. Around 70 percent of its clients are micro-enterprises in Asia and beyond. The digital bank has seen a six-fold increase in cross-border transactions over the past year.​​​​​​​​​​​​​​​​

Building capacity

• Ant International partners with various organizations to provide SMEs and underserved communities with resources, networks and training. Its initiatives include global fintech education platform 10×1000 Tech for Inclusion and SisBerdaya, a women’s entrepreneurship program in Indonesia.

This was done in partnership with the Monetary Authority of Singapore and the Global Finance & Technology Network.

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