Part 1: Looking back, looking ahead, a year-end perspective in financial services

Summary

Financial services across Asia Pacific entered a period of accelerated change during 2020, as digital-only banks, regulatory shifts around data access, and a pandemic-driven move toward mobile channels reshaped how banks compete for customers. Three forces are reshaping the region's banking landscape, signalling the industry's direction into 2021.

Neobanks are gaining ground across Greater China, Australia, and South Korea, with emerging momentum in India and ASEAN markets, alongside open banking policy developments in Singapore, Hong Kong, and Australia, including a consumer data rights framework that is expanding beyond banking into energy and telecommunications. The shift to mobile-first banking is also extending financial access into remote areas historically underserved by physical branch networks, as leading banks build marketplace ecosystems around everyday customer goals rather than individual products.

Looking ahead, growth areas for banks navigating this environment include: cloud adoption within a historically conservative regulatory context, deeper integration between banking and social media platforms, artificial intelligence applications for creditworthiness assessment among customers without traditional credit histories, branch network transformation, and the continued balancing act between frictionless digital experiences and security.

• Regional contrasts in neobank licensing progress across Greater China, Australia, South Korea, India, and ASEAN
• Projected trajectory of mobile and banking penetration rates in Asia Pacific through 2025

These shifts leave banks weighing unbanked and underbanked populations against a wave of new digital-first competitors reshaping customer expectations across the region.