Emerging markets in Asia-Pacific a hub of banking innovation for digital business, says McKinsey

Emerging markets in Asia-Pacific a hub of banking innovation for digital business, says McKinsey
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KUALA LUMPUR (Sept 24): Emerging markets in Asia-Pacific have become a hub of banking innovation for digital business models, given the accelerated adoption of digital banking due to the Covid-19 pandemic, according to McKinsey & Company.

In its 2021 Asia-Pacific Personal Financial Services Survey report released today, McKinsey highlighted how banks can reinvent their businesses to capture growth opportunities by focusing on three key areas — the value of branches, customer engagement and a bank’s overall competitive position.

Meanwhile, some of the key findings for the Malaysian market include:

  • In 2021, 90% of consumers use digital banking at least once per month, and 62% are using fintech/e-wallet services;
  • The majority of consumers are digitally capable, with 31% being "digital first" and 66% "multichannel";
  • Consumers are evolving to become "digital + multichannel", and relying less on branches;
  • Overall, digital behaviour from "digital first" to "multichannel" is relatively higher for the younger age group at 35% vs 31% overall;
  • More than 60% of consumers are open to migrating to a direct bank.