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Banks and financial institutions in the Asia Pacific region are quickly building momentum in the digitalization space.
This momentum can be seen across the financial ecosystem, from regulatory frameworks, to evolving traditional banking, to establishing completely digital neobanks. The key driver for this momentum, and its ability to reshape the industry, is how easily customers can begin operating at their chosen bank or financial institution.
When opening a new bank account, the first steps of a customer’s journey are vital. Complex questions, clunky UI, and an unintuitive process flow drives away over 50% of retail banking customers in APAC. Tech firms and mobile-driven lifestyle companies whose major products are mobile-based have set the precedent for what the customer onboarding experience should be.
Smartphone adoption in APAC is widespread, with 64% of the population currently connected. This number is projected to reach 80% by 2025. In Southeast Asia, mobile penetration has increased by 20% annually, and this trend is expected to continue as technology firms cater to evolving customer needs and expectations.
Although 90% of institutions have started digitalizing, only 60% have fully implemented a digital account opening process. Interestingly, 55-80% of customers are eager to open a branchless, digital-only bank account.
The journey can be accelerated if started in reverse – digital onboarding as an innovation primer, then additional functions and components deployed to compliment the new foundation. If digitalization is approached in this manner will be unable to ignore the impact and speed of growth it will enable.
Going Beyond with Digital Onboarding
Through introducing a streamlined, digital-first onboarding component, institutions can achieve:
- Accelerated acquisitions on a widely penetrated, customer-centric channel
- Increased engagement on a customer-centric, simplified user interface
- Rapidly initiated digital transformation journey that immediately captures and engages customers
The statistics are undeniable – banks and financial institutions are on the cusp of unprecedented opportunity because of technology. The focus must shift to leveraging this momentum, tapping into the widening usage of digital channels, and implementing a digital onboarding solution that kickstarts these institutions’ digital transformation journeys.
Tagged:
- apac, digital onboarding
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Samier Khan, Managing Director APAC
A Business Leader with deep expertise in business management strengthened by intellectual curiosity and grounded in real-world technical experience, providing the foundation for next-generation ideas, development, and implementation.
