Tuesday, Nov 29, 2022
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Consumer use of digital banking accelerates in Asia–Pacific: McKinsey

Digital banking APac-IFM-image
Number of digital banking users in APac rose from 54% in 2017 to 88% in 2021

Consumer use of digital banking is accelerating rapidly and one of the most contributing factors is fast adoption in emerging markets in Asia-Pacific, according to a recent report by McKinsey.

McKinsey said in its report, “Adoption of digital banking in emerging markets has caught up with that in developed markets. Between 2017 and 2021, the share of consumers in Asia–Pacific emerging markets actively using digital banking increased sharply, rising 33 percentage points from 54 percent in 2017 to 88 percent in 2021.

“The level of digital adoption among consumers in developed Asia–Pacific markets have remained stable at approximately 90 percent.”

McKinsey further said in its report that the shift to digital banking has happened rapidly and was likely accelerated by existing trends such as increasing use of digital channels for diverse transactions, including banking, and broader use of teleconferencing/video calls in place of face-to-face meetings—that have intensified during the Covid-19 pandemic.

In July, a research report published by UK-based research firm Juniper Research revealed that around 53 percent of the world’s population will access digital banking by 2026. Digital banking is on the rise, and since, 2010, more than 200 digital banks have popped up across the globe.

Currently, around 2.5 billion access digital banking across the globe. The number is expected to rise significantly, after receiving a boost due to the Covid-19 pandemic.

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