Most customers aren’t just looking for another bank. They’re expecting their bank to think ahead for them. To interpret the patterns in their spending. To flag what they’ve missed. To offer smarter, faster ways to manage money, without being asked.
More than seven out of ten customers say they want this level of intelligence, according to a Personetics Cognitive Banking Report. This isn’t a short-term shift in consumer behaviour. It’s a long-term evolution in how people relate to money and what they expect from the institutions managing it.
For banks across Asia, that means more than incremental change. It means new operating models, new relationships, and a redefined idea of what “digital-first” really looks like.
Asia’s financial institutions aren’t experimenting anymore either; they’re investing. From reimagining customer experience to reengineering back-end systems, they’re laying the foundation for a new kind of intelligence-led banking.
Following our latest expert webinar on the rise of cognitive banking in Asia, we’ve distilled the key AI trends which are already shaping the future of finance in the region.
The Shift Towards Cognitive Banking for Financial Wellness
Before diving into AI in banking in Asia trends, it’s important to look at what’s driving change from the ground up: customer expectations. The next evolution isn’t about faster transactions or sleeker apps.
It’s about cognitive banking, where financial institutions step beyond transactions and products and become proactive partners in their customers’ lives. Jody Bhagat, President Global Banking at Personetics, shared that this was attributed to the evolution of technology, specifically advancements in data analytics.
Jody remarked, “70% of customers want their primary bank to proactively analyse their financial activities and recommend steps they can take to improve their financial wellness.”
This becomes a baseline expectation, and indicates that most consumers are ready for banks to leverage their data, analytics and AI capabilities and perform a genuine value exchange: insights for loyalty, advice for action.
The Gen Z age segment is most engaged towards the concept. 86% show strong enthusiasm about being analysed. Up to 95% would consider switching banks for better cognitive banking features, a clear signal of where the market is heading.
From Nudging Customers to Driving New Opportunities with AI
Before today’s buzz around generative AI, banks were already laying the groundwork for smarter, more intuitive customer engagement. The early steps came through nudging customers at the right moment with tailored opportunities, without crossing into invasive territory.
It was a careful balancing act: being helpful, not pushy.
Today, predictive models are evolving into generative experiences, where customers don’t have to wait for the bank to reach out. They can initiate real-time conversations themselves: anytime, anywhere; not just during banking hours.
AI is also revolutionising how financial institutions reach previously underserved segments. By moving past traditional credit scoring and tapping into smarter, data-driven models, banks are not just turning unprofitable customers into profitable ones. They’re slashing costs and expanding access.
For businesses, it’s also been a journey towards identifying processes to streamline, where repetitive tasks are automated and also adding value through efficiency and at scale.
DBS Uses AI to Transform CX and Employee Productivity
At DBS, AI is changing how the bank connects with customers and boosts productivity behind the scenes. Ajay Mathur, Managing Director, Head of Consumer Banking Group & Wealth Management, DBS Bank (Hong Kong), breaks it down into three parts.
Firstly, AI is redefining personalised customer experiences to smarter internal workflows, all while keeping it real and relatable for both employees and clients.
Take the personalised approach, for example. If you’re holding yen in your portfolio and the currency appreciates, DBS will send you a nudge. It’s tailored to your activity, showing you what’s happening in the market and guiding you on what steps to take. It’s subtle, intelligent engagement that makes customers feel like the bank’s got their back, without the hard sell.
On the internal front, DBS is using generative AI tools like DBS GPT to help employees quickly access the info they need. It’s a game-changer for productivity, letting staff cut through the noise and get the answers they need, fast.
Ajay added, “We began analysing customers’ transactional behaviour, including the portfolio activity of our wealth management clients, and mapping it against real-time market movements. We found that informative nudges helped shift customer perceptions, making them see the bank as more intelligent and proactive than they had expected. And that’s worked really well for us.”
DBS is also testing AI-driven “co-pilots” in client interactions, where AI helps relationship managers provide spot-on responses minus the complications. It’s like having a well-informed assistant at your side, ensuring clients get sharp, accurate insights every time.
At UnionDigital Bank, AI is the core engine driving how they scale faster, assess credit risk better, and move toward hyper-personalised user engagement. Jino Noel, Chief Technology Officer, UnionDigital Bank, lays out how they’re building the future of banking.
First, UnionDigital gets a lot of its AI DNA from Union Bank, their parent company and one of the first traditional banks in the Philippines to jump into AI use.
This gave UnionDigital a major edge in critical areas like fraud detection, AML (anti-money laundering), and eKYC, automating user onboarding so they could grow their customer base fast, without the heavy lift of building physical branches.
Today, they’re pushing into more complex spaces. Thanks to their mobile-only model, UnionDigital can tap into a richer set of data. This opens new doors to make sharper, faster decisions, helping them offer banking products to a wider, more diverse pool of customers.
Jino shared, “As a digital-only bank, our entire user journey runs through our mobile app, giving us access to data that is not available from a traditional customer journey.”
He added that the digital bank is still in the early stages of its personalisation journey and is exploring partnerships to better engage its users, in relation to AI in banking in Asia.
GXS Bank is Using AI to Redefine Customer Support
GXS Bank uses AI in banking in Asia to strategically to enhance customer experiences and operational efficiency, according to Dr. Geraldine Wong, Chief Data Officer at GXS Bank.
Last year, GXS replaced its live agent FAQ support with an AI chatbot. After months of careful beta testing, the bot went live in the GXS app, cutting call volumes by around 20% across fraud to campaign enquiries, freeing up live agents for more complex cases.
Beyond reducing query numbers, GXS also tracks the time saved per interaction, helping identify the areas where AI has the most operational impact.
However, rolling out the chatbot wasn’t without its challenges. Geraldine noted the importance of building safeguards to prevent the bot from commenting on sensitive topics, a crucial consideration in Singapore’s diverse environment.
Geraldine commented, “It comes back to the level of trust that an organisation is building with their customers before they roll out cognitive banking. Organisations need to have policies and guardrails in order to address certain queries from the customer.”
Gino also highlighted that trust is crucial for financial institutions. Banks face a higher trust threshold than other industries like streaming or gaming. They must work hard to earn and maintain that trust, especially when introducing AI-driven services.
The Future of AI in Banking in Asia is Cognitive, Connected, and Customer-Led
The shift towards cognitive banking in Asia is already underway. Across the region, leading banks are rethinking what it means to truly serve customers: moving beyond transactions to build real, lasting relationships.
The most forward-looking institutions aren’t just layering AI on top of old systems. They’re fusing technology and human service in ways that open new frontiers, offering smarter, faster, and more individualised support without losing the personal touch that builds lasting relationships.
Institutions like DBS, UnionDigital, and GXS are showing that success is about trust, timing, and understanding what customers need, sometimes before they even ask.
The Cognitive Banking era will be led by banks that can anticipate, act thoughtfully, and earn their place in their customers’ lives, moment by moment.
The future of banking is not just smarter. It’s more human. And it’s already taking shape through cognitive banking in Asia and the rest of the world.
Catch the “How AI is Powering the Rise of Cognitive Banking ft. DBS, Union Digital, GXS & Personetics” webinar to dive deeper into AI trends that are redefining the financial landscape in Asia.
Source of image: Edited from Freepik
