Kearney: APAC Leads Digitally But Branches Still Relevant
Banks in APAC lead globally in digital adoption but branches are still playing a role in the industry with continued growth in certain markets in the region, according to a report by Kearney.
Asia Pacific is a leader in digital banking adoption worldwide, outpacing Europe by a median of 4.5 percent across all categories, particularly in investments and consumer finance, according to a report by consulting firm Kearney entitled «APAC Retail Banking Radar».
Digital channels make up 60 percent of basic financial product activities in APAC. Digital wallets account for 70 percent of e-commerce transaction value and 50 percent of point-of-sale transaction value – the highest of any region globally.
Physical Contact Matters
Nonetheless, branches still matter for complex transactors. For example, only 41 percent of mortgage-related activities and 59 percent of consumer lending are completed digitally.
While the total number of branches are declining in APAC overall, this does not apply to all markets. Between 2019 and 2023, branch networks in Malaysia and the Philippines increased by 1.3 percent and 8.5 percent, respectively.
«Digital innovation is reshaping how customers research and purchase financial products amid an evolving banking sector in Asia Pacific. However, the need for trusted, face-to-face advice remains critical, especially in emerging markets and for complex transactions,» commented Robert Bustos McNeil, Kearney’s financial services APAC lead and author of the report.
