Ernst and Young backs banking improvements in Laos
Ernst and Young backs banking improvements in Laos
Experts from Ernst and Young (EY) in Hong Kong and Singapore visited Laos on Wednesday to meet with senior officials from government finance bodies and private banks to discuss improvements to the country's banking system.
Regional Senior Partner Mr Keith Pogson and Director of Business Development (Ernst and Young Singapore) Mr Dougie Hamilton will give a seminar in Vientiane on Friday as part of technical cooperation between the Bank of the Lao PDR and Ernst and Young.
Director of Assurance Services at Ernst and Young Laos Limited, Mr Sonexay Silaphet, was among those to join the visiting experts for a press conference yesterday.
“We are going to be sharing our experiences with the banks here, building on international experiences and how that can be developed here in Laos” Mr Pogson told Lao media.
“Recently we have done a lot of research into banking in emerging markets and one of our observations is how quickly the emerging markets can catch up because the technology is now making huge differences to the way in which customers can be served.”
Mr Pogson said “One thing we observed is really that technology makes a huge difference to the way we serve customers. Increasingly you don't have to have physical cash and you don't need bank branches.”
“You just need some form of mobile phone that you can connect with the customer so that the customer can use the phone for making payments all across the country. This effectively revolutionises the way the economy works. It increases the access to banking and makes it easier for people to do business. We believe the bank of the future probably looks more like a computer company or technology company than it does the bank of today.”
“We see this as being the Apple or Google effect because they have changed the way that you buy services. They have changed the world so that the world is designed for you and customised for you rather than being a product that is generalised for the market place.”
What we are seeing particularly in emerging markets is that the banking systems are jumping one generation. You used to go and build the branches and the ATMs and so on. Now with the movement to mobile banking you can actually see it jumping a generation, Mr Pogson continued.
“As many people know there was a financial crisis over the last six or seven years. One of the advantages is that you can learn quickly from those mistakes and jump quickly to a more sophisticated and a safer banking system.”
All around the world Ernst and Young has been helping central banks implement these types of systems and regulation, he explained, most recently in Vietnam.
“We are looking forward to helping the central bank with the regulator and the government and the banks here in Laos over the coming days.”
Ernst and Young is a global finance, accounting and auditing firm whose network now covers 140 countries. Its head office is in London and its CEO is in New York.
Ernst and Young Lao Limited is a member firm of Ernst and Young Global. The firm was established in Laos in November 2006, and currently employs 38 professional staff (both locals and foreigners).
In Laos, the company provides audit and tax services to companies in various industries.
vientiane times
