EPAM CONTINUUM
Consumer Attitudes on Retail Banks in Asia Pacific
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Our most recent Consumer Banking Report has shown rapid changes throughout the retail banking industry globally, and Asia Pacific is no exception.
With consumer expectations constantly evolving – combined with recent technology innovations sweeping through the financial services industry – banks need to adapt. For retail banks in the Asia Pacific region to build a competitive advantage, they need to understand these changes – and the opportunities they present.
The infographic below highlights key findings from our most recent survey on consumer attitudes and expectations around banking.
What We Found
Branch Use
While banking through a mobile app is the most frequently used, the use of physical branches is still significant.
The Opportunity
Consumers in Australia, Hong Kong and Singapore have proven that they still regularly visit their bank’s physical branch, but is this because they want to or because they have to? Based on our findings, banking in the branch is primarily used for deposits, banking cheques and opening an account. Many banks do not have the technical capabilities to provide a complete online-only banking experience. The digital experience that banks offer needs to evolve to provide customers with alternatives to a physical branch to conduct what they perceive as routine transactions.
Embedded Finance
Almost half of the consumers in Australia and Hong Kong use some form of embedded finance, namely Buy Now Pay Later. Similarly, over half of the consumers in Singapore have used a form of embedded finance, most notably to purchase insurance products.
The Opportunity
The use of embedded finance products is skyrocketing with almost half of the consumers in Australia, Hong Kong and Singapore using it in some form. Banks need to figure out how to leverage the information they have about their consumers and, in turn, extend relevant, seamless credit offerings and other embedded services. The regulated nature of banks should lend itself to instilling customer confidence in the use of those products.
Digital Banking
Of consumers surveyed in Australia, Hong Kong and Singapore:
|
Use their banking app daily |
Use their banking app weekly |
Australia |
30% |
32% |
Hong Kong |
25% |
42% |
Singapore |
29% |
43% |
The Opportunity
As customers have shown for multiple years in a row, they continue to utilize an in-person banking experience through their local branch. However, with mobile banking on the rise, many consumers now crave a user-friendly, at-home banking experience. In fact, customers are choosing to bank online more than ever, again reinforcing the notion that banks need to provide full parity between their digital and in-person offerings.
The time to act is now. Customer expectations in Asia Pacific are quickly shifting, as are their attitudes and adoption rates of new financial products and services. For banks to keep up, they must develop a strategy and executable roadmap to meet customer expectations.
Want more of EPAM’s insights into the rapidly evolving financial services industry?