The global banking sector is undergoing a profound digital transformation, but the pace, priorities, and challenges of this journey differ significantly across regions. Nowhere is this more evident than in the Asia-Pacific (APAC) and Europe, Middle East, and Africa (EMEA) regions. As banks in these markets respond to shifting consumer expectations, regulatory pressures, and the aftershocks of the COVID-19 pandemic, their approaches to digital transformation reveal both shared ambitions and unique local dynamics. At Publicis Sapient, we help banks navigate these complexities, tailoring strategies to local market needs, regulatory environments, and consumer behaviors.
The pandemic acted as a catalyst for digital adoption worldwide, but its impact was especially pronounced in APAC and EMEA. In both regions, banks were compelled to rapidly digitize customer and employee experiences, often compressing years of planned transformation into months. However, the drivers and barriers to digital progress are not uniform.
APAC banks are at the forefront of digital innovation, with 68% of banking leaders in the region citing customer experience as a key organizational metric. This customer-centric focus is matched by a culture that actively promotes innovation in products and services. The region’s rapid digitization, however, has also made it a target for fraudsters, prompting regulators to tighten oversight. For example, high-profile phishing scams in Singapore have led to more stringent regulatory requirements, making compliance a top concern for APAC banks.
Regulatory complexity is a significant barrier in APAC, cited as equally challenging as the workforce disruptions caused by COVID-19. Banks must balance the need for speed and agility with the imperative to comply with evolving local regulations, particularly around data privacy and security. This has led to a surge in cloud adoption, with leading banks in the UAE, Singapore, and Australia implementing multi-cloud strategies to enhance resilience and meet regulatory requirements.
In EMEA, the digital transformation agenda is shaped by the need to modernize legacy systems and improve operational agility. While 67% of EMEA banks report having a clearly articulated digital strategy, the region’s banks often face challenges in executing these plans at speed. The lack of operational agility is a top barrier, with many institutions still reliant on outdated core systems and hierarchical decision-making structures.
EMEA banks are also contending with a highly competitive landscape, where both traditional players and digital challengers vie for market share. The convergence of functionality—driven by rapid feature adoption and reduced cycle times—means that differentiation increasingly hinges on customer experience and service quality, rather than just digital features. Banks are investing in core modernization, cloud migration, and data-driven personalization to stay ahead.
Despite these differences, banks in both APAC and EMEA are united by a set of transformation imperatives:
The UAE exemplifies the region-specific approach required for successful digital transformation. Retail banks in the UAE are reducing branch footprints and moving toward self-service and digital payments, with 71% of consumers now using digital payments over cash. Leading banks are leveraging customer data and machine learning to personalize services, while also investing in cloud strategies that satisfy both business and regulatory demands. The focus is on building digital ecosystems, improving customer journeys, and adopting an engineering mindset to accelerate transformation.
As digital transformation becomes an imperative rather than an option, banks in APAC and EMEA must continue to adapt their strategies to local realities. The most successful institutions will be those that:
At Publicis Sapient, we bring deep regional expertise and a proven track record of helping banks in APAC and EMEA accelerate their digital journeys. Whether it’s launching a neobank in record time, modernizing core systems, or designing hyper-personalized customer experiences, we help our clients build the bank of the future—one that is resilient, agile, and truly customer-centric.
Ready to accelerate your digital transformation? Connect with our regional banking experts to discover how we can help you thrive in a digital-first world.