A Tech-Driven Evolution In Financial Transformation For Southeast Asia

What happens when technology is used to resolve business pain points in Southeast Asia? Enhanced efficiency, improved business outcomes and an overall better level of quality of life for everyone in the region.

Technology is the driving force of our society’s transformation. From streamlined communication to the automation of tasks, technology offers a myriad of benefits. Embracing innovative tools not only accelerates productivity, it also opens doors to new opportunities and possibilities.

Hitachi is a firm believer in technology and the role it plays in social innovation. By applying technology to finance problems in the region, Hitachi is confident of resolving long-standing issues and helping businesses generate greater value for their customers.

Deep Tier Finance: Helping Suppliers in the Supply Chain with Their Cash Flow Using Blockchain Technology

The supply chain is the backbone of global commerce. Within the supply chain sits a wealth of data that intricately intertwine, forming a multi-layered structure. Hitachi aims to connect the data in the supply chain, with an emphasis on improving cash flow for the suppliers.

Like all businesses, suppliers rely on financing to stay cash flow positive. Unlike buyers, suppliers need more assets to secure financing. With the help of Mizuho Bank, Hitachi is creating a new service called Deep Tier Finance. It generates tokens using the Hyperledger Fabric Blockchain technology.

The token serves as receivables for suppliers, enabling them access to financing earlier than usual. With this token, suppliers can secure financing based on the creditworthiness of their buyer. The token can be split down the supply chain to sub-suppliers to secure financing as well.

Deep Tier Finance can also help buyers by collecting ESG data in the entire supply chain. The ESG data may also be used by suppliers to access better interest rates.

Play this video to learn more about Deep Tier Finance

Elevating the Agricultural Supply Chain in Vietnam with the Agri-Platform

The agriculture sector plays a significant role in Vietnam, accounting for 14% of its GDP and more than 40% of the labour force. Despite its importance, it remains in a state of analogue agriculture, due to the absence of a system linking farmers and buyers together.

There are three nodes on the agricultural supply chain: buyers, cooperatives and farmers. Buyers cannot reach out to the farmers directly. They have to go through a cooperative to buy produce.

This makes it difficult for farmers to assess market demands and adjust to the needs of the buyers. Farmers also do not keep records of their produce and yields. They also do not have enough assets to act as collaterals to access financing from the banks.

To solve this, Hitachi is working with Sorimachi Vietnam to develop the Agri-Platform, a one-stop portal for sharing information in the agriculture sector.

Agri-Platform uses data in the supply chain to visualise farmers' agricultural activities to prospective buyers. It enables farmers to sell their crops to buyers directly by serving as a gateway for business discovery.

On top of that, financial institutions can also use the data in the Agri-Platform to evaluate risk factors when it comes to offering financing to farmers.

Play this video to learn more about the Agri-Platform

Using AI in End-to-End Solutions for Processing Loan Applications

Consumer finance companies handle high volumes of loan applications every day. In some parts of the world, loan applications are submitted in person using paper documents. These applications are vetted with a set of procedures and processes before they are entered into the system for review.

More can be done to reduce the workload. Hitachi has an End-to-End solution that reduces efforts and time significantly.

For a start, users can apply for loans from the convenience of their mobile phones. The system can tap on social media platforms to pre-fill personal particulars. Digital scanning technology is used to convert physical documents into digital data. Applications will be pre-screened to ensure information is complete and verified.

An AI trained with the company's protocols and procedures will then analyse the applications using additional data from credit bureaus. This removed human errors and subjective judgment, making it more robust and efficient.

With our End-to-End solution, consumer finance companies can streamline their workflow and scale up their business to handle larger volumes of applications.

Play this video to learn more about End-to-End Solution for Loan Applications

Gamification: Making the Insurance Journey Engaging and Fun

Insurance is a modern-day necessity in today’s society. However, picking up a policy that suits your needs is a daunting experience. Insurance is filled with financial concepts and jargon. Premiums, coverage and pay-outs depend on a variety of factors, which are confusing, to say the least.

But what if buying insurance was as engaging as playing a game?

Introducing gamification: A concept that injects fun and engagement into the insurance buying process. Using this concept, Hitachi has developed an app to transform the insurance consideration process into an interactive adventure.

Players will encounter insurance concepts and learn through gameplay. Complex jargon can be broken down into digestible nuggets of information. The players are more likely to remember what they learn through gamified experiences, which improves customer engagement and satisfaction.

Play this video to learn more about Gamification

Deep Dive into ESG Data and Financial Indicators with the Help of AI

As the world grapples with the effects of climate change, there is a growing trend for businesses to report their impacts from an environmental, social, and corporate governance (ESG) perspective. Accurate ESG disclosure is difficult to achieve. Companies find it tough to quantify their ESG activities without understanding how they affect key indicators of business performance.

Hitachi is approaching this challenge with three technologies in the pipeline.

Technology #1: ESG Causality Modelling

It works by taking a deep dive into the ESG indicators and quantifying their effects on financial indicators using AI and structural equation modelling. Hitachi can pinpoint ESG indicators and their impacts on business outcomes. It also reveals causal relationships from ESG activities to financial indicators, as well as impact volume.

Technology #2: Clustering Analysis

This technology is used to achieve meaningful benchmarking across sectors. It works by clustering companies with similar causal relationships between ESG activities and financial indicators. This technique allows us to compensate for the lack of ESG data.

Technology #3: Policy Scenario Analysis

Companies make all kinds of choices, especially those that affect the future. With this technology, companies will be able to simulate different policy scenarios and assess their impact, from here on and into the future. It offers companies a structured manner to strategically prepare themselves for any disruptive external changes.