Banks across the Asia-Pacific region, and especially in Australia and New Zealand, are facing a rapidly evolving landscape. The cost-of-living crisis has become a defining challenge, with rising expenses and economic uncertainty placing unprecedented pressure on households. In this environment, customer expectations are shifting: people now look to their banks not just as service providers, but as proactive partners in their financial wellbeing. To meet these demands, leading banks are turning to advanced data analytics and artificial intelligence (AI) to identify, support, and empower customers experiencing financial stress—transforming both their operating models and the customer experience.
Recent research reveals that Australians, in particular, are acutely aware of the cost-of-living crisis. The majority of customers believe banks should play an active role in helping them manage financial stress, with 96% expecting banks to proactively detect early signs of distress. This expectation is even stronger among younger generations and those in precarious financial situations. Customers are not only looking for flexibility in loan repayments or fee waivers, but also for personalized, timely interventions that can prevent financial hardship from escalating.
Banks in the region are responding by harnessing the power of their vast data assets. AI and advanced analytics enable them to:
This shift from reactive to proactive care is a game-changer. By leveraging real-time data, banks can intervene earlier, providing support when it matters most and reducing the risk of default or customer attrition.
Asia-Pacific customers, especially in Australia and New Zealand, increasingly expect personalized experiences. Those in financially precarious situations are particularly vocal about the need for tailored services. Banks are using AI to analyze customer data and build individualized plans, offering the right tools and advice for each unique situation. This includes:
By embedding these capabilities into digital channels, banks are able to deliver support at scale, while still maintaining a human touch for complex or sensitive situations.
The cost-of-living crisis has also prompted a re-examination of lending practices. Banks are designing products with built-in safeguards—such as spending limits and usage controls—and using open banking and AI to assess affordability more accurately. Transparent communication and financial education are central to these efforts, helping customers make informed decisions and avoid over-borrowing.
Investing in AI-driven, customer-centric solutions is not just about social responsibility—it’s also smart business. Banks that prioritize proactive, personalized support see:
Research consistently shows that banks with higher customer experience scores enjoy greater willingness among customers to interact with them, even during challenging times. By aligning digital transformation with local customer expectations, banks can build resilience and long-term value.
Despite the promise of AI, many banks still face challenges integrating new technologies with legacy systems, ensuring data quality, and navigating regulatory requirements. Success requires a holistic approach:
Strategic partnerships and outcome-based delivery models can accelerate this journey, helping banks move from experimentation to enterprise-scale transformation.
With deep expertise in digital business transformation and a proven track record in financial services, Publicis Sapient partners with Asia-Pacific banks to deliver data-driven, experience-led solutions tailored to local market needs. Our integrated SPEED capabilities—Strategy, Product, Experience, Engineering, and Data & AI—ensure that transformation is actionable, compliant, and sustainable. We help banks not only meet rising customer expectations, but also unlock new sources of growth and resilience in an uncertain world.
Ready to reimagine your approach to customer experience and financial wellbeing? Connect with our experts to start your journey today.