Asia-Pacific (APAC) is leading the world in the adoption of digital banking due to consumers’ constantly evolving demands, combined with the unbanked potential and benign regulation. Non-traditional challengers such as Ant Financial and Tencent are shaking up the market. Temenos argues that in the battle between banks and fintech giants, banks that embrace digital transformation will emerge as champions.
Jun Zhu, President of Greater China, Temenos, commented: “Mobile payment penetration covers 70% of the population in China and across APAC. In China, Alipay and WeChat illustrate how mobile-based banking can be executed on a massive scale. Banks have taken notice; and expect that payments players will be their biggest competition over the next three years. Furthermore, APAC’s young population is driving the cashless revolution through a surge in mobile payment apps and expect a single entry point to all their financial needs. ”
Jean-Michel Hilsenkopf, Chief Revenue Officer, Temenos says: “Challenger banks and non-traditional players are entering the financial services landscape. This is a global trends which we see exacerbated in APAC. We believe that the move of fintech giants into banking will drive the digital transformation of the incumbent banks. Forward-thinking banks are rethinking their business models and the IT infrastructures that underpin them in order to scale fast and reduce their cost base. The banks that invest in delivering compelling, personalized experiences to their customers will be those that emerge as champions.”