Small and medium-sized enterprises (SMEs) are the backbone of Asia Pacific’s (APAC) economies, fueling innovation, employment, and sustainable growth. Yet, despite their critical role, many SMEs remain underserved by traditional banks. The region’s digital banking revolution—driven by the rise of digital-first competitors, regulatory diversity, and the imperative for financial inclusion—is fundamentally reshaping the SME banking landscape. For banks, the message is clear: transform quickly and safely, or risk being left behind.
A significant portion of SMEs in APAC are unbanked or underbanked, especially in Southeast Asia, where three out of four people lack sufficient access to financial services. This gap presents a major opportunity for banks to develop accessible, digital-first offerings that reach new customer segments and drive economic growth. Digital transformation is not just a trend—it’s a necessity for financial inclusion and sustainable development.
APAC’s regulatory environment is highly fragmented, with each market presenting unique compliance requirements. Banks must balance the need for rapid innovation with strict adherence to local and international regulations. This complexity demands flexible, modular solutions that can be tailored to each jurisdiction, ensuring compliance without sacrificing speed or customer experience.
Challenger banks and fintechs are redefining customer expectations, offering seamless, always-on digital experiences. Incumbent banks must respond by rethinking their operating models, modernizing legacy systems, and harnessing the power of data to deliver value-added services to SMEs. The ability to innovate quickly and deliver personalized, intuitive experiences is now a key differentiator.
Modernizing SME banking in APAC requires more than a new app or a digital façade. It demands a fundamental shift to modular, cloud-native core banking platforms that enable rapid product development, regulatory agility, and cost efficiency. This approach empowers banks to:
A major Thai bank partnered with Publicis Sapient to go beyond a new app, seeking a new business model and robust technical foundation. In just 12 weeks, a multidisciplinary team delivered a front-to-back banking platform, connecting mobile, payments, and real-time data. The result: the bank can now adapt quickly to market changes, launch new SME products at speed, and meet evolving customer expectations—all while adhering to strict regulatory obligations.
In Southeast Asia, Publicis Sapient helped Siam Commercial Bank (SCB) launch XPlatform, a one-stop cloud and DevOps solution. This platform streamlines developer processes and accelerates the creation of innovative digital banking products, empowering the bank to better serve SMEs and retail customers alike. The impact has been profound: a 50% reduction in DevOps efforts, 50% improvement in cost efficiency, and a four-week reduction in infrastructure setup time, all while enabling 25+ SCB subsidiaries’ applications.
Banks in Singapore have partnered with accounting platforms to enable SMEs to share transaction data directly, resulting in faster loan approvals and more personalized services. These partnerships exemplify how open banking and ecosystem collaboration can drive real value for SMEs.
Australian banks are also embracing digital transformation to drive down costs and risks while elevating customer experience. Publicis Sapient’s work in the region highlights the importance of lifecycle-led design and the integration of financial well-being into digital offerings, ensuring that SME banking goes beyond transactions to deliver real value.
To succeed in the digitized SME banking landscape, banks in APAC should consider the following strategies:
The future of SME banking in Asia Pacific belongs to those who can adapt, innovate, and put the customer at the center of everything they do. With modular, cloud-native solutions and a commitment to open innovation, banks can accelerate their digital transformation journeys, unlock new growth opportunities, and deliver the experiences that SMEs need to thrive in a digital-first world.
Publicis Sapient stands ready to help banks across APAC navigate this journey, drawing on deep regional expertise and a proven track record of delivering transformation at speed and scale. The time to modernize is now—let’s build the future of SME banking together.
Ready to accelerate your SME banking transformation in APAC? Connect with our experts to start your journey today.
Publicis Sapient: Your partner for digital banking transformation across Asia Pacific.
Contact our regional experts:
Let’s build the future of SME banking—together.