When banking products converge, experience becomes the differentiator

Banks in Southeast Asia are becoming more similar, with most offering instant transfers, QR payments, rewards tabs and basic chatbots. However, it's the experience that sets them apart. Customers care about the ease of opening an account, handling payment failures, and receiving help when needed. Experience depends on data, processes and people working together.

Banks that view it as a growth strategy will gain an edge. Core banking products like savings accounts, cards, loans and digital services look alike across the region, with top banks separated by minimal margins. Product and pricing still matter, but they no longer differentiate banks. What sets them apart is the surrounding experience.

Digital capability is the region's strongest foundation, while service - how a bank responds to issues - is the weakest. Consistency is also an issue, with leadership in account opening not extending to other areas. This means customer experience (CX) becomes a growth strategy. AI is increasingly being used to act - completing steps in onboarding, card servicing, loan enquiries or disputes - moving from response to resolution.

However, AI alone doesn't guarantee a great experience. If data is fragmented, processes are scattered or ownership is unclear, customers will still feel friction. The question is whether the bank is organized to let AI act usefully, safely and consistently. Trust is built when AI handles unrecognised transactions, declined applications or missing funds.

Key gaps include failed transfers lacking clear explanations and basic chatbots being slow to hand over to human agents. Speed matters, but clarity, reassurance and accountability are also important. The goal is not maximum automation, but the right automation. Routine, high-volume interactions are good candidates for AI, while complex or emotional moments require human judgment supported by AI insights to resolve issues faster.

Banks should plan for 2027 by answering four key questions: which journeys should be redesigned, where AI should act autonomously, what changes are needed in data, processes and ownership, and where customers expect human judgment. The Twimbit State of Asean Banking CX 2026 report will be released on October 27, recognizing leaders in banking experience, AI experience, app experience, onboarding experience, most inclusive banking and digital banks.