There is no question that the customer relationship with banks is shifting. More often than not banks are being encouraged to fit into the lifestyles of their customers rather than the other way around. As a result of this shift several banks within the region have placed emphasis on the creation of products based on desired client experiences and concerns.

 

According to data from McKinsey & Company, around 40% of Asian mass affluent customers have a preference for digital banking channels such as mobile and/or online. In developed Asian markets around 80% of financial customers across 13 markets in Asia would prefer to hold assets with banks that have a strong digital proposition. With this digital friendly climate in place, McKinsey & Company predicts that there will eventually be 1.7 billion active digital banking customers in Asia by 2020. There were around 670 million digital banking customers in 2014.

 

In light of the growth potential and digital-centric customer mindset, over the last several months The Asset has reached out and has had interesting discussions with both traditional and non-traditional players on how they are keeping pace with new technological ideas. As a result, we are pleased to present the winners of the Triple A Digital Awards 2016.

 

In the Asian financial technology (fintech) start-up space, companies such as Lendr and Fundnel stood out during the review period due to their expertise in developing sound alternative financing platforms for their clients, while banks including Citi and DBS grabbed top awards in the period.

 

Fintech has gone through a golden age in the last few years. From payment applications to cloud systems, various new companies are constantly aiming to enhance their client’s digital banking experience. Information from a Citi fintech report reveals that China is increasingly becoming a magnet for fintech investment. In 2015, around 19% of global fintech capital investment went into China, however, in 2016 that number more than doubled to 46% in China.

 

The effective usage of financial data was one of the key trends in the fintech start-up space with companies including Alpaca and BeagleData using their volumes of data to advise their clients on a number of investment decisions.

 

Citi, meanwhile, notches the Triple A Best E-Bank Award in Asia Pacific due to its wide scope of digital activity across the region. During the review period Citi excelled in refining its mobile offering and had a number of partnerships with new era companies such as Airbnb.

 

Regional and local banks within Asia also stepped up their digital offerings. DBS, for instance, was proactive in understanding the needs of its customers and put in place several measures to improve both its back end and front end systems. E.Sun Bank, in the overbanked market of Taiwan, developed a number of new products over the review period including its E.Sun Wallet, an application enabling its customers to make frictionless payments.

 

The customers’ digital experience got a boost over the past 12 months with several banks tweaking their value proposition. Citi rolled out its voice biometrics solution across a number of Asia-Pacific countries aimed at giving customers a hassle-free voice identification system. Bank Islam in Malaysia launched its e-Donation platform along with Visa to make it easier to support charity initiatives.   

 

Banks, in addition, completed significant projects over the review period. In China, ABC completed a massive overhaul of its core banking system to help support farmers in rural areas of China. Moreover, in Thailand, Krungthai Bank developed a unique web-based system to assist customers with their traffic infraction payments.

 

As competition picks up with new technologies and the entrance of non-traditional fintech players, incumbent banks need to be quick-witted, ambitious and hardworking if they are aiming to make a mark on Asia’s exciting digital banking landscape.