Banking sectors in Bhutan and across Asia are facing challenges such as costly cross-border transactions, fraud risks, and limited technology adoption. This was shared by bankers and policymakers at the Asian Bankers Association Conference held in Paro. One of the focuses at the conference is to discuss ways to address these issues with the help of AI, blockchain, and digital payments.
During a press conference, Bank of Bhutan’s Chief Executive Officer, Tshering Tenzin said that in response to challenges like cross-border payments, the bank is already working to make transactions seamless when Bhutanese travel abroad.
“We are working with the Central Bank to work; we can use our cards in India, seamlessly make payments in India. And for that matter, ultimately our idea is to move towards the region, the South Asian region, and then we should be able to make payments to all over the South Asian region and ultimately move towards the international third countries.”
With cross-border payments, the financial sector faces another challenge, fraud.
He added that the ultimate goal will be to integrate Artificial Intelligence to curb it.
“The ultimate aim, which is longer term, would be in terms of adopting AI-driven compliance and risk management so that we adopt AI tools to detect fraud and monitor transactions. Because the volume of transactions with current monitoring systems is actually not possible.”
With the theme “Financing the Future: Banking for Sustainable Growth,” the conference aims to bring innovation into Bhutan’s Banking sector.
Chairman of the Bank of Bhutan Thinley Namgyel said that the conference comes at a critical time with the commencement of Gelephu Mindfulness City project and the launch of country’s economic roadmap.
“As all of us here are aware, Bhutan is at the threshold of some very important initiatives. The first being the Gelephu Mindfulness City, a visionary city conceived by His Majesty The King. And also, the government very recently launched this economic roadmap, which aspires to increase Bhutan’s GDP by tenfold.”
During a press conference, Chairman of the Asian Bankers Association Daniel Wu said the diversity of the association’s members, which ranges from large international banks to small community institutions, provides a strong platform to share best practices.
“This year’s conference offers us the chance to share the best practice with all these international banks and also in the areas of digital banking, payment innovation, ESG integration, and customer experience. I believe the discussion held here will not only benefit our member banks, but also strengthen the resilience and dynamism of the Asian financial system as a whole.”
Tomorrow’s sessions will focus on key themes including digital transformation in sustainable banking, innovations in cross-border payments, and adapting regulations to meet the demands of a rapidly changing financial landscape.
Karma Samten Wangda
