Half of APAC banks still take months to act in a fast world: Survey
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Nearly half of banks in the Asia-Pacific (APAC) region still take months to roll out new decision strategies despite facing fast-changing market conditions, a new poll by analytics software firm FICO has revealed. This slow response comes even as 63% of senior bank leaders have ranked the ability to update decision-making processes such as fraud detection rules or credit risk models, as a top priority.The disconnect is raising concern, given ongoing macroeconomic pressures and disruptions stemming from cross-border trade tensions and shifting tariff policies from the United States. These conditions, the report says, require banks to operate with greater flexibility and speed.'Market volatility and evolving trade dynamics require financial institutions to move quickly and decisively,' said Dattu Kompella, Managing Director in Asia for FICO. 'Banks that build agility into their operations will be better positioned to maintain stability, earn customer trust, and stay competitive.'FICO's survey also found that banks across APAC are lagging in adopting advanced testing tools. Only 27% of respondents reported frequent use of simulation technologies such as digital twins, which are virtual models used to test system behaviour under various scenarios. According to FICO, this limited use may reflect a broader lack of preparedness as banks contend with increasingly complex customer behaviour, regulatory requirements, and financial risk.However, there are early signs of progress. Among the banks that do use simulation environments, roughly half of their credit and marketing strategies are tested virtually before being deployed. This suggests that a growing number of financial institutions are prioritising pre-launch testing to ensure accuracy and effectiveness.Meanwhile, 55% of banks said they are now reusing decision-making components across different functions—from fraud detection to customer service. This approach points to a trend towards more integrated and efficient systems.The poll also examined banks' views on business composability, which refers to the ability to quickly reconfigure and scale operations in response to external changes. Over half of respondents (53%) said this capability is essential for staying responsive in uncertain market conditions.Composability allows banks to create decision strategies from modular building blocks, such as data sets, predictive models, and business rules, often pulled from multiple departments. This structure encourages cross-functional teamwork and quicker innovation.Despite its potential, many APAC banks are still in the early stages of adopting composable systems. The transition, FICO said, will require flexible digital infrastructure, including open APIs, low-code development tools, and architectures that support modular design.'Agility starts with breaking down silos—whether technical or organizational,' Kompella added. 'When data, tools, and teams are connected, banks can adapt faster to the needs of both their customers and the market.'The FICO poll was conducted during a customer event in Singapore in late 2024, with participation from over 30 senior executives and C-suite leaders representing banks across the APAC region.
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