Regional Deep Dive: Digital Banking Transformation in Southeast Asia (SEA)

Southeast Asia’s banking sector is at a pivotal moment. With a rapidly growing digital economy, a young and tech-savvy population, and increasing competition from both regional fintechs and global tech giants, banks in SEA are under immense pressure to transform. The region’s unique blend of opportunity and challenge is driving a new wave of digital banking transformation—one that is customer-centric, innovation-led, and increasingly focused on sustainability and community engagement.

Recent research with 120 senior banking leaders across Southeast Asia reveals a region that is both ambitious and pragmatic. While 73% of SEA banks report having a clearly articulated digital transformation strategy, nearly half admit they have yet to make significant progress implementing it. The urgency is clear: 76% say customer centricity is driving key decisions, and 65% identify environmental, social, and governance (ESG) as a core driver of their transformation plans.

SEA banks are also prioritizing the use of intelligent technologies and data analytics to deepen customer understanding and drive operational efficiency. 40% of leaders cite investment in intelligent tech as their main focus, while 38% are prioritizing better use of data and analytics.

Despite their ambitions, SEA banks face significant hurdles. Regulatory complexity is a top concern, with 43% of leaders citing it as their biggest barrier to transformation. The region’s diverse regulatory landscape, combined with the need to comply with both local and international standards, can slow innovation and increase costs.
Legacy technology is another major challenge. Over a third of SEA banks (37%) say outdated systems are hindering their digital business transformation. These legacy platforms often create data silos, limit agility, and make it difficult to deliver the seamless, personalized experiences that today’s customers expect.

SEA banks are increasingly focused on breaking down data silos and leveraging insights to create new value. 42% of leaders want to combine customer data across different systems to better understand their customers, while 38% are prioritizing community engagement as a key customer experience initiative. This focus on data is enabling banks to:

• Personalize products and services
• Launch new offerings tailored to local needs
• Engage more deeply with communities

Intelligent technologies—such as AI, machine learning, and cloud-based platforms—are central to this transformation. By investing in these tools, banks can accelerate product innovation, improve risk management, and deliver more relevant, real-time experiences.

Sustainability is no longer a “nice to have” in SEA banking. With 65% of banks identifying ESG as a key driver of transformation and 69% believing their ESG strategy gives them a competitive advantage, the region is leading the way in integrating sustainability into digital banking. Diversity, equity, and inclusion (DEI) are also high on the agenda, with 42% of SEA banks making DEI commitments—well above the global average.

Publicis Sapient partners with leading banks across Southeast Asia to overcome these challenges and unlock new growth. Our approach is grounded in:

• Customer-centric design: We help banks reimagine customer journeys, leveraging data to deliver personalized, omnichannel experiences.
• Core modernization: By moving away from legacy systems and adopting modern, cloud-based architectures, we enable banks to become more agile, reduce costs, and accelerate innovation.
• Intelligent technology: We deploy AI, machine learning, and advanced analytics to help banks gain deeper customer insights, automate processes, and launch new products at speed.
• ESG and community engagement: We work with banks to embed ESG and DEI into their digital strategies, helping them build trust, engage communities, and differentiate in a crowded market.

SEA’s digital banking leaders recognize that transformation is not a one-time project, but an ongoing journey. The most successful banks are those that:

• Put customers at the center of every decision
• Invest in modern technology and data platforms
• Embrace agility and new ways of working
• Lead on ESG and community engagement

By addressing regulatory and legacy technology barriers head-on, and by leveraging intelligent tech and data-driven insights, SEA banks can deliver the next generation of financial services—driving growth, deepening customer relationships, and building a more sustainable future for the region.

Ready to accelerate your digital transformation in Southeast Asia? Publicis Sapient is here to help you navigate complexity, unlock innovation, and lead in the digital-first era.

Relevant Links

• Inside CYBOS: Driving Digital Transformation in Global Banking
• Inside CYBOS: Driving Digital Transformation in Global Banking
• La transformation digitale des banques européennes : enjeux, priorités et leviers d’accélération (Europe)
• La transformación digital bancaria en América Latina: Un imperativo para la competitividad (LATAM)
• La transformación digital bancaria en América Latina: Claves para acelerar el liderazgo en la era digital (LATAM)
• Reinventando la Banca en América Latina: Claves para la Transformación Digital (LATAM)
• La transformation digitale des banques européennes : enjeux, défis et opportunités (Europe)
• The Coreless Revolution: Rethinking Banking Architecture for Customer-Centricity