Asia Pacific’s financial services industry is projected to generate $4.8t in economic value by 2035, surpassing the United States, according to a new report by Deloitte. The report, titled “From growth to advantage: Competing for the future of financial services in Asia Pacific,” highlights the region’s potential to become the epicentre of global finance, driven by its expanding economy and innovative capabilities.
The report outlines four key battlegrounds that will shape the future of financial services in Asia Pacific. Firstly, the region’s growth is fuelling a multitrillion-dollar investment cycle, necessitating broader financing channels beyond traditional bank lending. Secondly, demographic shifts and digital adoption are rapidly transforming customer demand, with more than 750 million new customers entering the financial system in the past decade.
Artificial intelligence (AI) is identified as a crucial factor, with firms needing to redesign their business models around AI to gain a competitive edge. “The next advantage will come from redesigning business and operating models around AI,” said Stuart Johnston, Deloitte Asia Pacific’s Financial Services Leader. Lastly, engagement with regulators is essential as governments across the region rewrite financial rules.
David Wai Kit Wu, Deloitte Hong Kong’s Financial Services Leader, emphasised the importance of early engagement with policymakers, stating, “The firms that engage early with policymakers and bring practical solutions will shape the rules they operate under.”
The report concludes that Asia Pacific’s financial institutions must focus on connecting capital with investment opportunities and treating AI as a strategic priority to capture future growth.
