Asia Pacific Digital Banking Trends in 2011 & Beyond

30 May 2011 • by Natalie Aster

Inevitably, banks have to formulate strategies to expand through multiple digital banking channels. The report “Asia Pacific Digital Banking Trends in 2011 & Beyond” by Datamonitor highlights the supply and demands, and also the key trends with regards to digital banking in Asia Pacific.

Datamonitor expects that the overall usage of digital opinion, in the form of online product reviews, forums, and blogs, will increase in the next few years. Consumers are expected to use online resources as a main source of various kinds of information, including with regards to banking products and services.

Report Details:

Asia Pacific Digital Banking Trends in 2011 & Beyond
Published: April 2011
Pages: 55
Price: US$ 3,450.00

Report Sample Abstract

The Internet has changed the way consumers do their banking around the world

Without a doubt, banking in the last decade has been shaped by the adoption of the Internet within the sector, which means that online is no longer an emerging channel for niche consumer segments, but has become a mass-market tool around the globe.

The banking industry has faced an unavoidable business challenge to deliver products and services in a much more efficient way by utilizing the online channel. Online products have become mainstream products, and offerings such as online savings accounts have become a new benchmark for high-yield savings accounts in many countries.

Online acquisitions have also become one of the growth avenues for the banking industry. Banks have developed different ways to deliver their products and services through their websites by initiating online applications for certain banking products.

In a maturing market such as the UK, PCSs are widespread and are integrated into mass consumer markets. Consumers are shopping around online through third-party websites, such as Moneysupermarket, Confused.com, and GoCompare to contrast and apply for the best deals across many banks.

FS providers are extending their presence in digital space

With particular regards to Asia Pacific, FS providers are slowly extending their presence in the digital space. Digital banking is not just limited to Internet banking, but also includes all other applications of new digital technologies in the banking sector. These consist of most of the current non-face-to-face services through digital channels, such as mobile banking, online applications, e-channels, and also social media, with the exception of call centers.

Digital channels are seen as the future of banking interactions, as during the last decade banking customers have seen banks slowly shifting their focus to leverage Internet banking as one of their strategies to expand their business in a more efficient way. While e-channels will not completely replace the traditional face-to-face channels, Datamonitor expects that the use of digital technology will continue to dominate banking products and services in the next decade.

Asia Pacific is a high growth area for banking when compared to other regions around the world. The positioning of China and Japan in the world economy, plus high growth in developing countries such as India, are expected to provide strong growth in the next decade despite the recent global economic crisis.

Monetizing Internet banking as a sales channel

The popularity of Internet banking in the past decade has had some significant implications for the way in which consumers do their banking. One of the biggest implications is obviously the decreasing number of consumers who go to a branch.

Branch has traditionally been the main channel for banks to interact with their customers and for many customers this remains the case. This interaction could be in many different ways, starting from consumers depositing money into an account, opening a new account, changing their personal details, and also looking for financial advice. However, banks are increasingly pushing the majority of customers towards the online channel through Internet banking facilities which are now becoming a common offering in most developed countries. As a consequence, there is less opportunity for branch staff to cross-sell additional products and services to existing customers.

Datamonitor believes that Internet banking needs to keep up with the changing ways in which people do their banking by utilizing its unique positioning to support the bank's overall growth strategies.

Looking back on the last decade, the development of Internet banking has undergone two major stages; firstly as a servicing channel, and secondly as a transactional channel. At the first stage, banks responded during an early phase of the Internet phenomenon by offering Internet banking as an informational channel. This allowed a 24-hour banking service for those consumers who would like to check their balance and also view their recent transactions. The second stage involved the addition of transactional functionalities to the platform, and during this phase there has been a lot of focus on improving online security to guard against any fraudulent funds transfer.

More information can be found in the report “Asia Pacific Digital Banking Trends in 2011 & Beyond” by Datamonitor.

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