Digital-only banks, insurers will gain ground in APAC in the next two years: Forrester
By Digital News Asia August 8, 2019
- Seventy-seven percent of banking customers in Asia Pacific prefer digital channels
- Across all regions, insurers break into the top three in just Hong Kong and Malaysia
CONSUMERS in Asia Pacific are some of the most advanced when it comes to digital engagement with financial services, with 73% of consumers believing that they should be able to accomplish any financial task on a mobile device, according to new data* released by Forrester.
Consumers today prefer to interact with their financial services providers on digital channels, especially in mobile-first countries like Mainland China, India, Thailand, and Indonesia.
Seventy-seven percent of banking customers in Asia Pacific prefer digital channels, which are also preferred by life insurance customers in countries such as Mainland China, Thailand, India, and Australia.
In addition, Forrester found that many customers trust payment firms and technology firms over traditional financial services providers to help them better manage their finances. Global technology giants, payment providers, e-commerce players, and even ride-sharing leaders are already threatening established firms by offering simple, convenient, and more personalised digital experiences.
While banks lead in consumers' trust to act in the best interest of their financial well-being, a surprising cast of digital characters is not far behind. In India, Google beat out banks as the most trusted company to act in their best financial interests.
In Mainland China, Alibaba and WeChat are slightly behind banks, and across all regions, insurers break into the top three in just two regions: Hong Kong and Malaysia.
"Consumers are more likely to engage with firms that prioritise helping them improve their financial well-being," said Dane Anderson, vice president, research director and region manager, Forrester.
"We expect that customers will dynamically deconstruct their personal financial services ecosystems and reassemble them with newer and better players. Traditional institutions have several advantages but will be left behind if they do not transform faster to meet the challenge."