The way in which Asian customers are exploring and changing the way they consume banking services and use digital channels for their banking needs is rapidly transforming with each passing year. The openness and agility to understand and embrace these changes will reward banking sector companies. This will be the only way incumbent banks can survive in the Asian banking sector in the long run. This article entails a brief Q&A session wherein banking industry experts at Infiniti Research answer some key questions relating to the changing banking sector landscape in Asia.
Over the next decade, what are some of the most disruptive factors that could transform the Asian financial service sector?
Currently, the Asian banking sector is going through a period of turmoil. The environment in Asia’s banking sector is being largely influenced by geopolitical challenges, trade wars, and other political concerns. These could prove to be the three most disruptive factors concerning Asian banking companies and which can play a significant role in the banking decision taken by companies over the next decade. However, Asia being one of the biggest and the most lucrative markets for banking growth, companies in the sector must find new ways to adapt to these unfavorable conditions.
What can CEOs of banking sector companies in Asia do to cope with these disruptive forces?
CEOs of banking companies in Asia must ensure that they are up-to-date with the changing market conditions. This includes the need to keep the costs at bay. Despite the margin squeeze and the pressure on volumes, companies in the banking sector must aim to discipline their costs. It is also crucial for them to strategically manage risks. This involves not only the creative risks that they take on board but, also the conduct risks. Banks also need to be aware of the increasing scrutiny that is being placed on dealing with customers. Finally, it is also necessary for CEOs must effectively manage their balance sheet and capital.
What are some of the best ways for banking companies to stay relevant in the digitally-inclined market?
In the current fast-changing banking sector, where there is an increased focus on the digital landscape, incumbent banks will need to scale up their capabilities in four critical areas. This includes digital marketing to enhance customer acquisition and engagement, value-generation through digitally active consumers, leveraging customer data efficiently to provide a differentiated proposition, and embedding banking in customers’ daily lives for seamless banking transactions.