Regional Deep Dive: How Digital Banking Transformation is Unfolding in APAC, EMEA, and North America

The global journey toward every company becoming a digital bank is well underway, but the path is far from uniform. Across Asia-Pacific (APAC), Europe, the Middle East and Africa (EMEA), and North America (NA), the priorities, challenges, and opportunities of digital banking transformation are shaped by unique regulatory, cultural, and technological landscapes. Understanding these regional nuances is essential for organizations seeking to embed digital banking capabilities and remain competitive in a rapidly evolving financial ecosystem.

APAC stands at the forefront of digital banking transformation, driven by high rates of digital adoption, intense competition from tech giants, and a culture that prioritizes customer experience. In markets like Singapore and Hong Kong, the introduction of virtual banking licenses has enabled a new wave of digital-only banks and non-bank entrants, offering innovative services without the burden of legacy infrastructure. In Southeast Asia, partnerships between established banks and technology providers are accelerating the launch of new digital platforms and services.

Key Drivers:

• Customer-Centric Innovation: 68% of APAC banks cite customer experience as a top organizational metric, and the region leads in fostering cultures that promote customer-led product development.
• Tech-Driven Competition: The presence of digital-native giants like Tencent and WeChat has spurred incumbents to rapidly modernize, often by launching mobile-only propositions on next-generation core banking platforms.
• Regulatory Push and Pull: While regulation is a catalyst for innovation—enabling new entrants and business models—it is also a significant barrier. APAC banks rank regulatory challenges on par with pandemic-related disruptions, as rapid digitization has made the region a target for fraud, prompting tighter oversight.

Case in Point:

• Siam Commercial Bank (Thailand): By partnering with technology providers to launch cloud-native platforms, SCB has delivered mobile banking solutions with over 100 features, enabling rapid product iteration and enhanced customer control.
• SCB TechX (Southeast Asia): A joint venture with Publicis Sapient, SCB TechX provides platform-as-a-service solutions, helping banks reimagine customer engagement and drive operational efficiencies.

Recommendations for APAC:

• Embrace cloud-native, modular architectures to enable rapid innovation and scalability.
• Invest in robust fraud prevention and compliance capabilities to address evolving regulatory requirements.
• Foster agile, customer-led cultures that can quickly adapt to market shifts and new technologies.

EMEA’s digital banking landscape is shaped by a mix of mature markets with legacy infrastructure and emerging markets leapfrogging to digital-first models. The region is characterized by a strong focus on strategic transformation, with 67% of banks reporting clearly articulated digital strategies. Regulatory initiatives such as Open Banking and PSD2 have catalyzed innovation, enabling new entrants and fostering a vibrant fintech ecosystem.

Key Drivers:

• Regulatory Innovation: Open Banking and data-sharing mandates have lowered barriers for fintechs and non-banks, encouraging collaboration and competition.
• Operational Agility: EMEA banks identify lack of operational agility as a key barrier, prompting investments in core modernization and agile operating models.
• Platform Business Models: There is a growing emphasis on building digital platforms that extend beyond traditional banking, leveraging data, user experience, and technology to create new revenue streams and customer value.

Case in Point:

• Lloyds Banking Group (UK): After incremental transformation, Lloyds adopted a bold approach by building a new, cloud-native tech stack, migrating core customer business to this platform for greater agility and customer-centricity.
• Nationwide Building Society (UK): By partnering with Publicis Sapient, Nationwide launched a digital platform for comprehensive mortgage options, demonstrating the power of platform-based innovation.

Recommendations for EMEA:

• Prioritize core modernization and cloud migration to overcome legacy bottlenecks and enable agile product delivery.
• Leverage regulatory changes as opportunities to innovate and differentiate, particularly in payments and data-driven services.
• Build open, partner-friendly platforms to attract third-party innovation and expand the value proposition beyond banking.

North America’s digital banking transformation is marked by a highly competitive landscape, with both traditional banks and fintechs vying for customer loyalty. While the region leads in digital payments adoption, fewer banks report having a clearly articulated transformation strategy (60%), and only 42% believe they are ahead of direct competitors in product and service innovation.

Key Drivers:

• Consumer Expectations: The U.S. is the world’s largest contactless credit card market, and business buyers increasingly expect seamless, Amazon-like experiences from their financial providers.
• Embedded Finance: Non-bank companies, from e-commerce giants to logistics providers, are integrating financial services into their platforms, blurring industry boundaries and raising the bar for customer experience.
• Operational Agility: Like EMEA, North American banks cite lack of agility as a major barrier, highlighting the need for business-led, customer-centric transformation strategies.

Case in Point:

• Amazon and Uber: Both have embedded lending and payment solutions into their platforms, offering tailored financial products to business customers and partners.
• U.S. B2B SMBs: 42% reported increased online transaction volumes during the pandemic, underscoring the shift toward digital payments and embedded finance.

Recommendations for North America:

• Develop holistic, business-led transformation strategies that prioritize customer experience and operational agility.
• Invest in API-first, cloud-native platforms to enable rapid integration of new services and partnerships.
• Embrace embedded finance opportunities by leveraging data and customer relationships to deliver value-added services within and beyond traditional banking.

While the imperative to become a digital bank is universal, the journey is deeply regional. APAC’s rapid innovation, EMEA’s strategic platformization, and North America’s focus on customer experience each offer valuable lessons. Across all regions, success hinges on:

• Modernizing core systems and embracing cloud-native, API-driven architectures.
• Building agile, customer-centric cultures that can adapt to constant change.
• Leveraging regulatory shifts as catalysts for innovation, not just compliance.
• Partnering across ecosystems to deliver integrated, personalized financial services.

At Publicis Sapient, we combine global expertise with local insight to help organizations navigate the complexities of digital banking transformation—wherever they operate. Whether you’re looking to launch a neobank in APAC, modernize your core in EMEA, or embed financial services in North America, our tailored solutions and proven accelerators can help you lead in the next era of digital business.

Ready to accelerate your digital banking journey? Connect with our experts to unlock new growth opportunities in your region.

Relevant Links

• How Every Company Will Become a Digital Bank
• How Every Company Will Become a Digital Bank
• Modernizing B2B Client Onboarding: Lessons from Fintechs for Commercial Banks
• La finance intégrée B2B : une révolution pour les entreprises européennes (Europe)
• Finanzas Embebidas y la Modernización de Pagos B2B: Oportunidades para América Latina (LATAM)
• Industry Spotlight: Embedded Finance and Digital Banking in the Supply Chain & Logistics Sector