Regional Deep Dive: Accelerating Digital Banking Transformation in Asia Pacific

Asia Pacific (APAC) stands at the forefront of digital banking transformation. With a rapidly expanding middle class, high rates of mobile adoption, and a vibrant fintech ecosystem, the region is both a proving ground and a launchpad for the next generation of banking. Yet, this dynamism comes with unique challenges: regulatory diversity, legacy system complexity, and fierce competition from digital-native banks and fintechs. For incumbent banks and specialist lenders, the question is not whether to transform, but how to do so at speed, scale, and with lasting impact.

APAC’s regulatory landscape is as diverse as its markets. From the progressive digital banking frameworks in Singapore and Hong Kong to the evolving compliance requirements in emerging economies, banks must navigate a patchwork of rules while maintaining agility. This complexity is compounded by the region’s rapid digital adoption—customers expect seamless, omnichannel experiences, and are quick to embrace new entrants that deliver them.

Legacy IT systems, often built for a different era, struggle to keep pace with these demands. Maintaining and patching these systems is costly and stifles innovation, making modernization both a necessity and a challenge. The stakes are high: outdated technology cost financial institutions globally $36 billion in 2022 alone, a figure projected to rise sharply in the coming years.

Fintechs and digital-native banks are setting new standards for speed, personalization, and customer experience. They leverage cloud-native, composable platforms to launch products in weeks, automate onboarding, and deliver real-time insights. For traditional banks and specialist lenders, the imperative is clear: embrace the same agility, or risk being left behind.

A leading Thai retail bank exemplifies what’s possible in APAC. Facing the need to unify account types and empower customers with a single, digital-first experience, the bank partnered with Publicis Sapient to deliver a transformation in just 12 weeks. The approach:

• Multidisciplinary, Agile Teams: Technology, UX, and strategy experts worked side-by-side in agile sprints, accelerating time to market.
• Modern Core Banking: The product engine was built on a cloud-native core banking platform, enabling rapid product launches and integration with fintech partners.
• Customer-Centric Design: Brand, creative, and UX were reimagined from the ground up, with iterative testing and real-time customer feedback.
• End-to-End Platform: A front-to-back solution connected the mobile app, payment platform, and a real-time data lake, enabling the bank to adapt quickly to market changes and regulatory requirements.

The result? The bank can now launch new products at speed, meet evolving customer expectations, and achieve long-term cost-to-income targets—all while maintaining compliance in a complex regulatory environment.

Publicis Sapient’s experience across APAC and beyond reveals several best practices for accelerating digital banking transformation:

1. Translate Ambition into Action: Start with a clear vision. Define the customer problems to solve, the experiences to deliver, and the business outcomes to achieve. Build a transformation plan that is actionable and aligned to your unique value proposition.
2. Adopt a Composable, Modular Approach: Avoid monolithic solutions. Leverage cloud-native, API-first platforms that allow you to assemble best-in-class components tailored to your needs. This reduces risk, accelerates time-to-market, and enables ongoing innovation.
3. Prioritize Customer-Centricity: Place the customer at the heart of your transformation. Use real-time data and analytics to personalize experiences, empower self-service, and deliver seamless journeys across channels.
4. Embrace Agile Delivery and Collaboration: Form multidisciplinary teams that bring together technology, business, and customer experience experts. Work in agile sprints to iterate quickly, test new ideas, and adapt to changing requirements.
5. Mitigate Risk Through Coexistence: Rather than a “big bang” migration, consider a coexistence strategy—running new and legacy systems in parallel to minimize disruption and ensure business continuity.
6. Secure Buy-In Across the Organization: Core modernization is not just a technology project—it’s a business transformation. Engage stakeholders at all levels to build momentum and ensure lasting change.

No single technology can address the full spectrum of needs in APAC’s financial services sector. Publicis Sapient brings together a curated ecosystem of partners—including Mambu, Thought Machine, Salesforce, nCino, and leading cloud providers—to deliver tailored, future-ready solutions. This approach enables banks to:

• Accelerate time-to-market for new products
• Enhance compliance and operational resilience
• Unlock new revenue streams through open banking and data monetization
• Drive efficiency by automating processes and modernizing legacy systems

With deep regional expertise and a proven track record, Publicis Sapient is uniquely positioned to help APAC banks and specialist lenders navigate transformation:

• Speed and Scale: Launch new banks or products in as little as three to nine months, leveraging accelerators and repeatable blueprints.
• End-to-End Expertise: From strategy to build, we cover every aspect of digital banking transformation.
• Ecosystem of Partners: Our relationships with best-in-class fintechs, cloud providers, and technology vendors ensure you have the right tools for every challenge.
• Proven Results: From the UK’s OSB Group to leading banks in Thailand, our clients have achieved 90% straight-through onboarding, 13 self-service options, real-time customer insights, and expedited payments—all while building a scalable, customer-first foundation for future growth.

Asia Pacific’s financial institutions are at a crossroads. The winners will be those who can modernize at speed, harness the power of ecosystem partnerships, and deliver the seamless, personalized experiences customers now demand. Publicis Sapient stands ready to be your partner on this journey—helping you build the future of banking, today.

Relevant Links

• Transforming Tradition: How OSB Group is Building a Future-Ready Bank
• Transforming Tradition: How OSB Group is Building a Future-Ready Bank
• Industry Spotlight: Core Banking Modernization for Credit Unions and Mutuals
• Modernización del Onboarding en la Banca Comercial Latinoamericana: El Camino hacia la Experiencia Digital que Exigen las Empresas (LATAM)
• Moderniser l’Onboarding Client dans la Banque Commerciale Européenne : De l’Entrave à l’Accélérateur de Croissance (Europe)