When banks across Southeast Asia embraced digital channels, the benefits were clear: greater convenience for customers and significant efficiency gains. But there was a hidden cost – one that many underestimated.
In digitising the customer interface, banks inadvertently removed the human touch that once defined their relationships. Apps replaced advisors and the experience became transactional. Functional? Yes. But emotionally resonant? Not anymore.
This shift has led to what many describe as a “sea of sameness.” Beyond the logo or color scheme, the daily experience of banking has become indistinguishable across institutions. For the average customer, one banking app feels much like another. And when your experience is powered by the same recommendation engines and workflows, it’s easy to jump ship for a slightly better rate or offer.
The trend mirrors what Starbucks CEO Brian Niccol recently admitted that mobile ordering, while efficient, had “chipped away at the soul” of the brand by diluting personal connection. The same could be said of digital banking today.
Gone are the familiar calls from trusted bank managers or the spontaneous branch visits that built loyalty over time. What remains is “lazy loyalty” – customers who stay not out of true affinity, but because switching feels marginally more inconvenient than staying.
Loyalty in decline
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Accenture’s most recent Banking Consumer Survey, which polled 49,300 customers around the world, confirmed that loyalty is weaker than ever.
For example, our survey shows that nearly three in four bank customers (85%) in Singapore are now, in a manner of speaking, “cheating” on their primary bank by maintaining relationships with one or more competing banks. The fact that a similar proportion (73%) have stayed with their primary bank for at least seven years offers little consolation – it’s lazy loyalty.
What’s missing for many banks in Southeast Asia isn’t technology, it’s advocacy. That means customers who not only trust their bank to protect their financial wellbeing, but also actively recommend it to friends, family and peers. The real question is: can banks shift from passive retention to active advocacy? Our research says yes.
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The urgency is real. While digital-only banks haven’t yet become salary anchors – only 10% of respondents deposit their paychecks into digital-first accounts – one in three customers globally already have a relationship with a digital-only bank.
Challenger banks like Trust Bank in Singapore, UnionDigital Bank in the Philippines and Superbank in Indonesia are growing fast, focusing on hyper-personalised experiences, frictionless onboarding, and real-time responsiveness. These aren't fringe players and are building serious momentum, especially among younger, digital-native consumers.
In this environment, traditional banks can't afford to rest on brand equity alone. Lazy loyalty is no defence against bold, mobile-first innovation.
There lies a fantastic opportunity. Our data shows that banks in Asia Pacific with a higher share of customer advocates see tangible returns: 1.3 times faster revenue growth and greater share of wallet.
What drives customer advocacy?
A deeper analysis of our survey revealed four key drivers of customer advocacy. Crucially, while many banks believe they’re performing well on these dimensions, customers don’t always agree. That disconnect is the difference between passively retained customers and passionate advocates.
Advocates expect their bank to:
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- Reassure me: Trust and transparency remain foundational. Whether it’s an in-person conversation at a branch or an AI chatbot, customers need to believe that the advice they receive is as reliable as the security of their deposits. Banks that consistently provide relevant insights and responsible guidance – especially during moments of financial uncertainty – strengthen loyalty and position themselves as long-term partners, not just service providers.
- Remember me: In an era where super apps know what you bought for lunch, customers expect their banks to know more than their account number. They want personalised interactions, not generic prompts. Just like a branch manager who greets regulars by name, today’s customers want continuity across channels, relevance across life stages, and recognition of their history. When banks demonstrate they’re listening, customers feel valued and they’re far more likely to stay and advocate.
- Delight me: Service and channel experience matters immensely. It ranks second among all advocacy drivers, yet too often banks treat service as a cost center rather than a differentiator. Service expectations are rising and competition is intensifying. Banks that invest in intuitive, responsive and seamless service can stand apart. The opportunity for banks? To treat service as a growth lever, not just a line item to optimise.
- Reward me: This goes beyond attractive rates. Yes, competitive fees and pricing still matter – but our research revealed a striking fact: over half of customers globally don’t know their current rates or fees. That makes headline pricing less effective as a loyalty tool. Instead, advocacy is built on perceived value – benefits that are relevant, transparent, and easy to use. Whether it’s better FX rates for frequent travelers or rewards tied to savings goals, banks must design smarter, stickier benefits that show appreciation without eroding margins.
Bringing back the human connection
For banks, the real challenge isn’t just deploying more digital tools – it’s rebuilding emotional connection in a region where banking has become largely transactional. The question is: how do you weigh short-term costs against the long-term gains of customer advocacy?
With its ability to remember, delight, and reassure at scale, gen AI is uniquely positioned to close the advocacy gap. It has the potential to reintroduce empathy into digital interactions, turning scripted responses into dynamic, relevant conversations tailored to each customer.
In a region saturated with similar offerings and rising customer expectations, banks must fundamentally rethink how they earn loyalty. This means moving beyond generic CX enhancements and toward personalised, emotionally resonant experiences that turn customers into advocates – and advocates into engines of profitable growth.
Paul Ng is the financial services lead, Southeast Asia at Accenture.
