Banks in APAC are losing out to new customers due to slow transformation, 10x Banking finds as they announce expansion plans in the region.
Research commissioned by 10x Banking, founded by Antony Jenkins, former Group CEO of Barclays, reveals less than 8% of Banks in APAC are focusing on their core banking capabilities, which is where the opportunity for true transformation resides.
10x Banking (10x), the global, cloud-native core banking platform, today announced its plans to accelerate the company’s growth in APAC fuelled by a landmark study revealing that a third of banks in key markets across the globe are losing large numbers of their customer base to rivals due to slow transformation.
67% of APAC decision-makers believed they had lost out on winning new customers due to slow digital transformation, with an overwhelming 94% of respondents from Vietnam and 78% of New Zealand respondents agreeing.
Surveying more than 150 senior decision-makers and more than 150 product managers, business analysts and project managers, across eight markets (UK, South Africa, the Nordics, Australia, New Zealand, Germany, India and Vietnam), 10x’s study sought to understand the decision-making process within the world’s leading banks when it comes to digital transformation, specifically their ability to adopt new technologies, respond to market change, roll out new products, and prioritise resource appropriately.
Commenting on the findings, Antony Jenkins, founder of 10x Banking said, “Across the APAC region, whilst 83% of APAC decision makers feel that uncertainty across the banking sector has resulted in accelerated digital transformation, less than 8% are focusing on their core banking capabilities, which is where the opportunity for true transformation resides.
Jenkins continues, “Banks in APAC have a tremendous opportunity to move from legacy to a modern cloud-based core, transforming their bank operations but also enabling them to address the huge deficit of accessible customers in the region. Southeast Asia’s 600 million population are either unbanked or underbanked resulting in communities lacking access to basic financial services.”
Expanding further on the opportunity in APAC, Head of Sales Richard Lim said, “What is encouraging is the regulatory and industry focus supporting financial institutions to lower the barriers to entry. The need to move from slow, siloed banking systems to a single, seamless, and scalable operation across all business lines is a growing priority for banks in the region as they want to compete with the rise of the Fintechs,” Lim explains.
Speaking on the business opportunity in Australia, Peter Timmins Regional Director of APAC commented, “There is a ripe opportunity for transformational core banking technology in the market. With 10x, banks no longer need to grapple with legacy systems; they can innovate at pace, making banking accessible to millions more people.”
10x is a cloud-native, API-enabled platform offering fully managed services developed to modernize core banking through flexible and modular solutions, offering banks a higher level of agility and personalization capability at a lower cost to serve.
This research is part of 10x’s latest industry report, “Global banks and the transformation illusion slowing their progress”: