Asia Pacific (APAC) and Australasia are at the epicenter of a digital banking revolution. With a population that is both digitally savvy and, in many cases, underserved by traditional financial services, the region presents a unique landscape of opportunity and challenge. In Southeast Asia alone, three out of four people lack sufficient access to financial services, making the rapid adoption of digital banking not just a trend, but a necessity for financial inclusion and economic growth.
Banks across Southeast Asia, Australia, and New Zealand are under immense pressure to modernize. The region’s unique blend of rapid digital adoption, evolving regulatory landscapes, and a strong imperative for financial inclusion creates both challenges and opportunities for banks seeking to leapfrog legacy constraints and compete with digital-first challengers.
Banks in APAC face a patchwork of local regulations, with compliance requirements that can differ significantly between countries. Regulatory change is as much a barrier as it is a catalyst, with 36% of APAC banks citing regulation as a top challenge—on par with the disruption caused by COVID-19. This complexity is heightened by the region’s rapid digitization, which has made it a target for fraudsters and prompted regulators to tighten controls, especially around onboarding and KYC processes.
Consumers in APAC and Australasia are among the world’s most digitally engaged. In Southeast Asia, digital channels are critical for financial inclusion, while in Australia, the rise of digital attackers and fintechs has forced incumbents to accelerate their transformation. Customers now expect experiences that match those offered by global tech leaders, driving a culture of customer-led innovation. Notably, 68% of APAC banks rank customer experience as a key organizational metric.
The need to reach unbanked and underbanked populations is more pronounced in APAC than in many Western markets. Banks that can quickly develop accessible digital offerings stand to gain significant market share, especially as governments and regulators push for greater inclusion through digital means.
Rapid digitization has made APAC a target for fraudsters, prompting regulators to tighten controls and banks to invest in robust security and compliance frameworks. High-profile incidents, such as large-scale phishing scams in Singapore, have driven regulatory responses that directly impact digital transformation strategies.
Legacy core systems are stifling innovation and agility. Maintaining these systems is costly and resource-intensive, diverting investment from new products and customer experiences. As digital-native competitors and fintechs enter the market with cloud-native, modular platforms, incumbent banks must act decisively to avoid obsolescence.
Siam Commercial Bank (SCB), one of Southeast Asia’s leading banks, exemplifies the power of bold modernization. Facing intense competition from digital challengers and tech giants, SCB partnered with Publicis Sapient to reinvent its business model and technical foundation. The result? A new platform that enables rapid product launches and innovative customer engagement—such as integrating food delivery into the banking experience. This transformation was delivered in just 12 weeks, demonstrating that with the right strategy and partners, even large incumbents can move at startup speed.
In another example, Publicis Sapient worked with SCB to launch XPlatform, a one-stop cloud and DevOps solution that streamlines developer processes and accelerates the rollout of cutting-edge digital banking products and services. By modernizing its technology stack and embracing cloud-native development, SCB is now able to deliver new customer experiences faster and more efficiently than ever before.
Australian banks are navigating a landscape of heightened competition, regulatory reform, and shifting customer expectations. The response has been varied—from building new challenger tech stacks to partnering with fintechs and experimenting with innovative business models like Buy Now, Pay Later (BNPL). The most successful banks are those that:
Publicis Sapient stands at the forefront of digital banking transformation in APAC and Australasia. Our approach combines:
By leveraging a curated ecosystem of best-in-class partners and proven accelerators, we help banks modernize at speed, reach underserved populations, and compete with digital-first challengers. Whether you are an established bank seeking to modernize your core, a fintech looking to scale, or a challenger aiming to launch a new digital proposition, our expertise and partnerships can help you unlock new growth opportunities and deliver the experiences your customers deserve.
Banks in APAC and Australasia have a unique opportunity to leapfrog legacy constraints and set new standards for digital banking. By embracing cloud-native platforms, customer-centric design, and agile ways of working, they can deliver the experiences today’s customers demand—while reaching new markets and driving sustainable growth.
Ready to accelerate your digital banking transformation in Asia Pacific? Connect with Publicis Sapient to discover how we can help you build the bank of the future—faster, smarter, and tailored to your market.