Competition is intensifying between established retail banks and technology and e-commerce companies to digitalise banking throughout the Asia-Pacific (APAC) region, according to the latest research.
Temenos’s Economist Intelligence Unit (EIU) report revealed that 60% of global banking executives saw the likes of Google, Facebook, Apple as well as payment players such as WeChat Pay, Alipay and PayPal as the biggest threat to APAC bankers.
Other highlights from the report included:
- 25% of respondents saw neo-banks (such as Volt Bank, Varo Money and Monzo) as the biggest threats
- 37% believed that emerging regulation would have a significant impact
- 34% felt the ability to capture customer data was the main concern regarding Open Banking, followed by a third-party relationship vulnerability being exploited (31%) and an inability to protect against cyber-attacks (31%)
- New technologies (AI, machine learning, blockchain) were viewed as the dominant trend that would have the most significant impact on retail banks by 2025
“Asia-Pacific bankers are acutely aware of the race they find themselves in against technology giants that have the capital and scale to take market share from established players,” said Martin Frick, managing director of APAC at Temenos.
“To remain relevant, retain customers and appeal to the evolving demands of younger generations, banks must master digital engagement, and quickly.”
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