Regional Comparison: How Southeast Asia’s Digital Banking Transformation Stacks Up Globally

Digital transformation is reshaping the global banking sector, but the journey is far from uniform. Southeast Asia (SEA) stands out as a region of both immense opportunity and unique challenge, with banks accelerating their digital agendas while navigating a landscape distinct from peers in the U.S., U.K., Canada, Australia, France, and Germany. This comparative analysis explores how SEA’s digital banking transformation measures up globally—highlighting where the region leads, where it lags, and what actionable insights can be drawn for banks worldwide.

Shared Imperatives: Universal Drivers of Change

Across all major markets, several themes consistently emerge as the foundation of digital transformation:

Customer Experience as a Top Priority: Improving customer experience is the leading digital transformation goal worldwide. Banks are investing in personalized, omnichannel journeys and leveraging data to tailor products and services. In SEA, 76% of banking leaders say customer centricity drives key decisions, with 24% citing customer experience as their top priority—mirroring a global trend seen in the U.S. (44%), U.K. (40%), and Australia (43%).
AI and Intelligent Technologies: The adoption of AI, machine learning, and generative AI is rapidly moving from experimentation to enterprise-wide deployment. In the U.S., 53% of banks cite AI and emerging technologies as their top priority for the next three years, with similar focus in the U.K. (45%), Germany (47%), and Australia (31%). SEA banks are also prioritizing intelligent tech, with 40% investing in AI and analytics to deepen customer understanding and respond to digital-first challengers.
Operational Agility and Cloud Migration: Legacy technology and lack of agility remain persistent barriers. Banks in Canada (48%), the U.S. (38%), U.K. (32%), Australia (31%), and Germany (34%) all cite legacy systems as a major hindrance. In SEA, 37% of banks identify legacy technology as a key impediment, and 35% are focusing on building modern, cloud-based core banking systems.
ESG and Diversity: Environmental, social, and governance (ESG) considerations are increasingly driving transformation, especially in France (50%), SEA (65%), and Australia (57%). However, there is a notable gap between intention and action, with many banks lacking the data and processes to measure ESG performance. DEI commitments are highest in SEA (42%) and Australia (36%), but lag in the U.S. (22%) and France (37%).

What Makes Southeast Asia Unique?

1. Customer-Centric Innovation and Community Engagement

SEA banks are particularly focused on leveraging data to create richer, more personalized customer journeys. Forty-two percent are prioritizing the integration of customer data across systems, and 38% cite community engagement as a top customer experience priority—an area where many believe they are ahead of their competitors. This focus on community is more pronounced in SEA than in most Western markets.

2. ESG and DEI Leadership

SEA is a global leader in embedding ESG and DEI into digital transformation strategies. Sixty-five percent of SEA banks say ESG is a key driver of transformation, and 69% believe their ESG strategy gives them a competitive advantage. Forty-two percent have made DEI commitments, well above the global average and ahead of the U.S. (22%) and U.K. (32%).

3. Barriers: Regulation, Legacy Technology, and COVID-19

SEA banks face significant hurdles, with 43% citing both the COVID-19 pandemic and regulatory challenges as top barriers—higher than in many Western markets, where operational agility and budget constraints often dominate. The region’s diverse regulatory landscape and the need to comply with both local and international standards can slow innovation and increase costs.

4. Competitive Confidence, but Gaps Remain

Half of SEA banks believe they are ahead of the competition on all fronts, yet 36% acknowledge they lag in offering traditional products through new channels and delivering personalized services. This self-awareness is crucial as digital-first challengers and global tech entrants intensify competition.

How SEA Compares to Other Key Markets

United States: U.S. banks are heavily focused on AI, agility, and cybersecurity, but lag in DEI commitments and often struggle with legacy technology. While 61% believe they’re ahead in customer experience transformation, only 22% have made DEI commitments, and 55% say ESG drives transformation—lower than SEA.
United Kingdom: U.K. banks prioritize cybersecurity and efficiency, with 40% focusing on personalized customer journeys. However, only 32% have made DEI commitments, and legacy tech remains a significant barrier.
Canada: Canadian banks are strong on customer data integration (56%) and ESG (86% say it drives transformation), but face challenges with legacy systems and lack of unified strategy. DEI commitments are higher than the U.S. but still trail SEA.
Australia: Australian banks are close to SEA in DEI (36%) and ESG (57%), with a strong focus on customer experience and agility. However, regulatory and legacy tech barriers persist.
France and Germany: French banks are ESG leaders (50% cite it as a top priority), but face data access and regulatory challenges. German banks lead in DEI (58%) and prioritize AI, but budget and skills gaps are significant hurdles.

Actionable Insights for Southeast Asian Banks

Accelerate Core Modernization: Prioritize migration to cloud-based, modular core banking systems to enable agility, reduce costs, and accelerate innovation—learning from the operational focus seen in Canada, Germany, and Australia.
Deepen Data and AI Capabilities: Invest in modern data architectures and AI to enable real-time insights, personalization, and operational efficiency. Benchmark against U.S. and U.K. peers who are rapidly scaling AI use cases.
Proactively Navigate Regulation: Build strong compliance capabilities and engage with regulators early to shape the future of digital banking, drawing on best practices from markets with complex regulatory environments.
Move from ESG Intention to Action: Develop robust data and processes for ESG measurement and reporting, closing the “say-do” gap and leveraging ESG as a true differentiator.
Foster a Culture of Agility and Inclusion: Break down silos, empower cross-functional teams, and invest in talent development to drive transformation at pace. Continue to lead on DEI and community engagement, setting a global example.

What Global Banks Can Learn from Southeast Asia

SEA’s strengths in customer-centricity, community engagement, and embedding ESG and DEI into transformation strategies offer valuable lessons for banks worldwide. By putting the customer at the center, leveraging data for insight-driven innovation, and making sustainability and inclusion core to their strategies, SEA banks are charting a path that others can follow.

Conclusion: Charting a Path Forward

While the pace and focus of digital transformation vary by region, the direction is clear: banks must become more agile, data-driven, and customer-centric to thrive. The most successful banks are those that know their competitive landscape, transform people and culture alongside technology, build strong partner ecosystems, and embrace AI and intelligent technologies. As the industry continues to evolve, those who act boldly and decisively—learning from both global peers and regional leaders like Southeast Asia—will define the future of banking.

Publicis Sapient partners with leading banks worldwide to accelerate digital transformation, helping them navigate local complexities while adopting global best practices. To learn more about how your bank can benchmark itself globally or adapt best practices from other regions, contact us today.