Retail Banking Regional Report: Asia-Pacific 2024
Summary
This report explores the Asia-Pacific retail banking sector from a comparative perspective, highlighting key similarities and differences across markets within the region. The largest banks in each market, among other useful banking related statistics (such as average net interest margin) are provided alongside macroeconomic forecasts to give a feel for the composition of a given country’s economy and retail banking sector.
This report analyzes the key financials, competitive landscape, and drivers of relationship depth in retail banking markets in Asia-Pacific.
Scope
- New Zealand and Australian customers have a strong preference for traditional banks due to local banks’ long-established presence and robust reputations.
- Singapore has a highly concentrated market, with local providers such as DBS, POSB, and OCBC dominating.
- After a challenging 2020 - 22, multiple Asia-Pacific economies are in the recovery period. With an influx of foreign direct investment (FDI) and growth in technology sectors, Southeast Asia is proving more resilient than other regional markets. With huge growth in the consumer market, the region is becoming increasingly lucrative to local and international banks.
- Market concentration is increasing in India as regulatory procedures become more stringent, leaving local banks with significant opportunity to excel in the market.
- Keep up to date with the macroeconomic trends impacting the retail banking sector in the Asia-Pacific region.
- Understand where the best opportunities exist by comparing countries based on factors ranging from average net interest margin to market concentration.
- Develop an understanding of the differences between consumers’ research methods, average tenure, and channel usage across different countries in the region.
- Executive summary
- Financials
- Technological innovation will drive banks’ performance across Asia-Pacific
- Banks have benefitted from high lending rates as central banks hiked rates in 2022
- India’s strong recovery meant it outperformed China on average RoA in 2022
- Improved financial environments are boosting RoA across Southeast Asia
- Growth in developed markets will slow as key emerging economies gain prevalence
- Southeast Asia and India are becoming key focal points for banks
- Australia and New Zealand continue to battle with mortgage stress
- Competitive Landscape
- Anglo markets are generally among the most concentrated in the region
- Alternative competition is causing customers to look past traditional providers
- Digital wallets are performing well as they target the underbanked
- Financial intermediaries and retailers/supermarkets have struggled to take off
- Huge potential for Chinese banks to advance technologically
- Depth of Relationship
- Asia-Pacific relationships must appease tech savvies and digital newcomers
- Negative NPS results in Japan and South Korea are due to high customer expectations
- Alternative wealth providers are becoming increasingly attractive in developed nations
- India and Vietnam lead cross-selling due to high concentration
- Engagement with Digital Banking
- Banks in developed countries are more able to monetize newly acquired digital customers
- Customer expectations for simplicity have driven openness to digital banking channels
- Improving financial awareness will help customers adopt digital channels
- In-branch channels are more sought after when complex tasks need to be completed
- Customer Satisfaction
- Digital satisfaction in Asia-Pacific is the highest of all regions globally
- Loyalty rewards have the lowest satisfaction rates across the region
- Appendix
- Methodology
Research Assistance
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