Contact: Louise Denver
Deloitte
Media Relations
0414 889 857

Contact: Kay Thawley
Deloitte
Partner Enterprise Risk Management
+61 (0) 3 9208 7195

Contact: Gerry Schipper
Deloitte
Partner Assurance & Advisory
+61 (0) 3 9208 7085

Retail banking customers are driving a new surge in investment and growth in Asia, says global professional services firm Deloitte, after releasing research that highlights a burgeoning financial services sector, with bank deposits from more than 400 million bankable households in Asia Pacific (including India) now reaching US$8 trillion.

Australia’s financial services co-leader Gerry Schipper says, "The sector is on the cusp of its next stage of development and Australia needs to be on the front foot to take advantage of the opportunities in the region.

"This growth in bankable households and deposits is challenging the local power base in the domestic market," Schipper says. "Global banks, such as Citigroup and HSBC, have gained a significant presence in Asia and can potentially leverage their mature retail experience in the emerging Asia Pacific growth markets.

"This experience, together with hands-on insight into the unique Asian retail consumer patterns, creates a formidable challenge for Asia’s domestic banks as well as Australian banks’ aspirations in the region. However, Australian banks can similarly leverage their competencies, in particular in the way technology and branch distribution is deployed in Australian to deliver ‘bundled’ services".

Kay Thawley, Deloitte financial services industry partner in Australia and member of the editorial board of Deloitte’s latest Asia Pacific research, The engine of growth, retail banking customers drive the future of financial services in Asia, refers to the three key comparative charts in the document that compare Australia, China, India, Japan, South Korea and Taiwan and their key market indicators and market trends.

She says, "These comparative trends show the importance of customers needs as the focus of products, services and distribution strategies even where infrastructure is emerging.

"Purely on current and forecast growth, the emerging Asian markets have to be high on the agenda of large Australian banks seeking sustainable growth.

"While several strategic plays have occurred particularly in China, the threat to Australian firms is the advanced ‘retail’ presence of leading global banks."

Schipper adds, "Australian banks are well-managed and operate in a stable, regulatory environment. They have good IT systems, and a suite of different products. They have also learnt to be incredibly competitive.

"The findings in this research indicate that, a customer-centric approach, as well as a focus on high net worth profitable customers, will create the winners in the region.

"Those that balance costs and risk, develop customer-centric service strategies, develop staff as brand ambassadors, and meet the exponential growth in consumer demand, will capture the edge."