APAC Banks Risk Losing Customers as Demand for Digital Services Grows

APAC banks digital services are becoming increasingly important to customer retention as consumers demand more personalised financial advice and AI-enabled banking capabilities, according to research by Temenos and Celent.

The study found 72% of Asia-Pacific consumers were only moderately satisfied or less satisfied with their primary financial institution.

Better online and mobile banking would persuade 43% of APAC consumers to switch institutions, while 58% want more financial guidance and 52% expect banks to better anticipate their needs.

Interest in artificial intelligence is also growing. Globally, 68% of consumers said they would be willing to use conversational interfaces for banking queries.

However, privacy and data security remain significant barriers in Asia-Pacific, with 46% identifying them as leading concerns.

Banks are responding by increasing technology investment, with 46% globally planning major changes as competition shifts increasingly towards personalised, digitally enabled financial services.