Cross-Border Banking Activity Surge in Asia: RFI Global Report 2023.
Singapore – Embargoed 00:01 3rd August 2023
Key Research Findings
- Significant increase in cross-border banking activity across Asia.
- 20% of Asian consumers now hold cross-border banking products.
- This figure is even higher in Hong Kong and Indonesia at 26%.
- Consumers show a preference for using the same bank, both domestically and internationally.
The latest data from world-leading financial insights provider RFI Global shows increasing activity and growing trends in cross-border banking, with 1 in 5 (20%) of consumers in Asia holding cross-border banking products. This figure is higher still in Hong Kong and Indonesia.
About the Report
The RFI Global International Banking Insights Report is a comprehensive study on various topics. These include the local banking landscapes, customer acquisition, product holdings, cross-sell performance, priority banking, customer experience benchmarking, channel usage, payments, fintech and innovation. The report also zeroes in on specific areas such as international banking, Mass Affluent, Digital and Mobile Banking, channel and product satisfaction, proposition testing, and sustainability.
Data shows that vital bilateral corridors also exist, with consumers preferring to use the same bank, both domestically and internationally. Regional players such as Bank of China, Maybank, CIMB, and HSBC have successfully acquired competitors’ customers.
Why Cross-Border
The reasons behind the rise in cross-border banking products varies across markets. Prominent reasons include access to diverse products and the pursuit of a greater return on investment. Most consumers prefer having the same or similar benefits domestically and internationally. China is an exception, where consumers prefer a single-view-of-bank and wealth management balance/statements across all locations.
Decline in remittances – increases cross-border transactions.
As the cost of remittances continues to decline across the region, data shows that we can anticipate a surge in expected demand for cross-border transactions. This makes it an increasingly crucial area of focus for financial players. The primary purpose for remittances in most markets is ‘sending money to family’, with ‘making overseas investments’ being the main reason in Malaysia and Taiwan, and ‘paying for overseas goods or services’ topping the ranking in China.
HSBC, and with a lower degree of success Citibank, are leveraging their global footprint and emerging amongst the top destinations in the following cross-border banking corridors: China-Hong Kong, India-USA, Indonesia-Singapore, Singapore-Malaysia, and Taiwan-USA.
RFI’s Director of Consumer Digital & Segment, Stefano Colombu said; “This data highlights just how important sophisticated and well-thought-out cross-border banking products are for consumers today. The changes RFI is seeing in banking behaviour, as well as the increasing demand for choice when it comes to international banking services should be top of mind for the industry and those providers wanting to deliver what their customers want.”
For more RFI Global can offer the report to Journalists as well 1:1 conversations with an RFI Global Research and Insights Director.
Ends.
Additional Notes for Editors:
About RFI Global
RFI Global was founded in Sydney in 2006 to provide financial intelligence for the Australian financial services market. It is now the world’s financial services community’s #1 data and insight partner. It serves 49 markets with a local presence in Sydney, Singapore, Dubai, London, Paris, Toronto, New York, and San Francisco. Since its inception, RFI has provided tailored subscription-based insight and data solutions for local, regional and global Financial Services players, enabling them to make data-driven decisions confidently and quickly.
To learn more, please visit: www.rfi.global.
For more information or to speak with a Spokesperson, please contact:
Chloé James
Group Director of Media & Communications at RFI Global
Email: cjames@rfi.global
Phone: +61 0451 118 042
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