Zhi-Ying Barry, Senior Analyst
Progressive Pioneers are the most empowered consumer segment. They lead demand for product and experience innovation. In the US, 25% of consumers are Progressive Pioneers. In metropolitan India, that number is a staggering 81%. In metropolitan Mainland China, that number jumps even higher to 85%. Senior Analyst Zhi-Ying Barry breaks down how the demand for innovation in Asia Pacific is creating a new financial services landscape.
Many consumers in Asia Pacific moved from non-digital experiences straight to mobile, skipping over the laptops and desktops that remain popular touchpoints in other markets. Now, 73% of customers across Asia Pacific believe they should be able to accomplish any financial task on a mobile device.
Incumbent banks have been slow to move, leaving a gap that nimble startups have readily capitalized on. For example, Singaporean rideshare app Grab has already introduced several financial products including cash loans, mobile wallets, working capital loans, and insurance.
Banks have used trust as the bedrock of their operations. But this is no longer the persuasive argument it used to be. Forrester found that many customers trust payment firms and technology giants over traditional financial services providers to help them better manage their finances.
To build a successful future, incumbent firms need to rethink their business models and how they deliver value to customers. Innovating in-house is likely not going to be viable long-term, as consumer expectations always rise. Financial services firms can benefit by developing partnership strategies and considering new ways to position themselves (e.g., a platform or trusted data custodian) so that customers will select them as the center -point of their financial services ecosystem.