Report: Over 700 Million in Asia Already Bank Digitally
Friday, April 3, 2015
According to a new report from McKinsey & Company, smartphones and high speed Internet access are transforming banking habits in Asia where over 700 million people already regularly conduct transactions online.
“Consumers of financial services are turning to computers, smartphones and tablets more often to do business with their banks, while visiting branches and calling service hotlines less frequently,” McKinsey reported.
In a survey of 16,000 financial consumers in 13 markets, the multinational consulting firm found a 33% rate of digital banking penetration among urban consumers in emerging economies, including China, India, Indonesia, Malaysia, the Philippines, Thailand and Vietnam, compared to only 10% in the same survey in 2011.
In developed markets – Australia, Japan, Hong Kong, Singapore, South Korea and Taiwan – the penetration figure was 92% in 2014, up 33% from 2011.
Banks see plenty of room for growth in emerging markets, while customers throughout the region are increasingly selecting their banks on the basis of the digital services on offer.