Asia Pacific's Emerging Markets Drive Rapid Digital Banking Innovation and Adoption

Financial Services - Asia-Pacific's Emerging Markets Leap Ahead in Digital Banking Innovation and Adoption

As consumer adoption of digital banking accelerates across Asia-Pacific, emerging markets have become the epicenter for pioneering digital businessand innovations. Approximately 90 of consumers actively using digital banking services now exist in both emerging and developed Asian markets, with many expressing openness to purchasing additional banking products via mobile apps or online channels.

The dynamic landscape has propelled leaders into leveraging advanced technologies likeand to offer personalized experiences, thereby bridging the gap between customer interest in digital banking and actual sales. This has resulted in an impressive jump from 20 to up to 30 of respondents who have successfully acquired new customers by offering a full suite of services across digital platforms.

This evolution is challenging traditional financial institutions as over half of consumers indicate they are willing to switch banks for digital-only offerings or may even consider transferring up to 36 of their investment portfolios. The market for direct banking is expanding rapidly, with ecosystem giants, fintech innovators, and industry consortia increasingly venturing into the space.

To navigate this competitive environment, incumbent banks must first define their strategic positioning within a landscape that sees both digital attackers and omnichannel incumbents vying for dominance. Whether by launching standalone digital banks or building robust technology ecosystems for seamless integration across channels, these transformations require significant investment beyond basic features like convenience, speed, ease of use, and security.

In , as the financial services sector in Asia-Pacific transforms at an unprecedented pace, incumbent banks must adapt swiftly to capture new opportunities while addressing emerging threats. Embracing innovative technologies and strategies will be crucial for staying ahead in this rapidly evolving digital landscape.

Acknowledgements: Special thanks to Sonia Barquin partner, Eric Buntoro associate partner, Ignes Pricillia specialist from McKinsey's Jakarta office, Vinayak HV senior partner based in Singapore. Their contributions have significantly enriched the content of this piece.

Explore Career Opportunities with us Search Openings
This article is reproduced from: https://www.mckinsey.com/industries/financial-services/our-insights/emerging-markets-leap-forward-in-digital-banking-innovation-and-adoption

Please indicate when reprinting from: https://www.773j.com/Card_Alliance_Card_Alliance_Platform/AP_Leaping_Digital_Banking_Innovation.html