Finance, Technology, and Business in a “Never Normal” World

For years, business leaders spoke about navigating the “new normal.” But today, as Uday Kotak observed, we have entered a different era altogether: the “never normal” world. Markets, technology, and geopolitics are changing so rapidly that stability has become the exception rather than the rule.

For financial institutions and businesses across Asia-Pacific, this shift is not a distant trend—it is playing out in real time. From pandemic shocks to digital disruption, the operating environment now demands agility, resilience, and the capacity to adapt continuously.

What Does “Never Normal” Mean?

The “never normal” world is characterized by:

• Constant volatility. Economic cycles are shorter, shocks more frequent, and recovery patterns less predictable.

• Digital acceleration. Technologies like AI, blockchain, and real-time payments are reshaping industries at unprecedented speed.

• Shifting regulation. Governments are responding to new risks—from cybercrime to money laundering—with evolving compliance frameworks.

• Geopolitical fragmentation. Trade tensions, supply chain realignments, and national security concerns add new layers of uncertainty.

• Changing consumer behaviour. Customers now expect instant, digital-first services, making traditional models obsolete.

In other words, there is no steady state to return to. Organizations must build for disruption as the baseline.

Finance in the Age of “Never Normal”

The financial sector illustrates this dynamic vividly.

• Payments. The rise of real-time payment systems across APAC—such as Singapore’s PayNow, India’s UPI, and Hong Kong’s FPS—has transformed customer expectations. But it has also opened the door to faster fraud schemes, requiring banks to rethink fraud prevention and AML strategies.

  
  

• Banking. Regional banks must juggle tightening regulatory demands while competing with nimble fintechs offering seamless digital onboarding, lending, and remittance services.

  
  

• Capital markets. Volatility in global trade, commodities, and currencies is amplified by algorithmic trading and geopolitical shocks, challenging both regulators and investors.

In this context, risk management can no longer be a static function. It must be dynamic, tech-enabled, and integrated across the enterprise.

Technology as Both Disruptor and Enabler

Technology is the driver of much of this instability—but also the most powerful tool to adapt.

• Artificial Intelligence. AI is being deployed for fraud detection, credit scoring, and compliance monitoring, but also poses risks if models are biased, opaque, or poorly governed.

  
  

• Blockchain. Beyond cryptocurrencies, blockchain is enabling secure identity verification, trade finance, and cross-border payments.

  
  

• Automation. From robotic process automation (RPA) in compliance to customer service chatbots, efficiency gains are significant but raise workforce transition challenges.

In Asia-Pacific, adoption is often leapfrogging legacy stages. For example, Southeast Asia’s e-wallet boom demonstrates how millions of consumers bypassed traditional banking altogether, jumping straight into mobile-first ecosystems.

The Never Normal in Asia-Pacific

The APAC region provides some of the clearest examples of this new reality:

• India’s UPI has made digital payments nearly universal, but also brought fraud challenges that regulators are racing to address with stricter KYC and real-time monitoring.

  
  

• Hong Kong is building regulatory mechanisms like Scameter and Money Safe to combat rising digital fraud, reshaping how banks interpret their obligations.

  
  

• Australia faces intense scrutiny of financial crime controls, with AUSTRAC pushing institutions to modernize AML systems while also confronting record scam losses.

  
  

• Singapore has created cross-border QR payment linkages, driving efficiency but also requiring new frameworks for anti-fraud collaboration.

Each case shows how innovation and disruption advance together, creating both opportunity and risk.

Building for a Future Without Stability

If “never normal” is the defining feature of modern business, how should institutions respond?

1. Embed resilience. Risk management must be forward-looking, scenario-based, and stress-tested against unlikely but high-impact events.

   
   

2. Invest in adaptability. Legacy systems and rigid processes are liabilities. Cloud-native, modular architectures are better suited for continuous change.

   
   

3. Strengthen digital trust. Fraud prevention, identity verification, and cybersecurity are no longer back-office concerns—they are central to customer confidence and regulatory compliance.

   
   

4. Rethink governance. Boards and leadership teams must shift from long-term predictability to continuous oversight and rapid response capability.

   
   

5. Collaborate regionally. In APAC, cross-border payments and trade are deeply interconnected. Sharing intelligence and harmonizing standards will be critical to managing systemic risks.

Conclusion

The phrase “never normal” may sound unsettling, but it reflects the reality businesses already face. Disruption is constant. Technology accelerates both risks and opportunities. Regulation evolves as fast as fraud.

For financial institutions in Asia-Pacific and beyond, the challenge is not to seek stability but to thrive in instability. Those who can build agile systems, resilient operations, and trusted digital relationships will not only survive but lead in the never normal world.