A recent study by Temenos and Celent reveals that banks in the Asia-Pacific (APAC) region are struggling to retain customers as expectations for personalised and AI-enabled banking services increase. The report, titled “The Banking Expectation Gap: Global Consumer Edition,” indicates that nearly three-quarters of APAC banking customers are only moderately satisfied with their primary financial institution, creating a significant “switchable middle” of consumers open to changing banks for better digital services.
The research highlights that 58% of APAC consumers desire more financial guidance, whilst 52% expect their banks to better anticipate their needs. Despite this demand, only 4% of banks globally prioritise investment in personalising customer experiences. Additionally, 68% of consumers worldwide are open to using conversational interfaces for banking queries, although concerns about privacy and data security persist, with 46% of APAC consumers wary of these issues.
In response to these evolving demands, nearly half of the banks globally plan to overhaul their core banking systems by 2027. Michael Bernard, Principal Banking Analyst at Celent, noted, “Customers want banking that feels more personal, more secure and easier to use, whilst still providing human support when it matters.”
Will Moroney, Chief Revenue Officer at Temenos, emphasised the need for banks to adapt, stating, “To win the ‘switchable middle’, banks need to deliver the trust, relevance and convenience customers now demand from every financial interaction.”
The study surveyed 2,515 global banking consumers and included insights from 216 global banking leaders, underscoring the critical need for banks to modernise and personalise their services to maintain customer loyalty.
