Malaysia and the Philippines expanded their branch networks between 2019 and 2023.
Banks in the Asia Pacific region outpace their European peers by a median of 4.5% in
digital adoption
, although physical branches are not going anywhere for some markets.
Digital channels now account for 60% of basic financial product activities across the region, according to research by Kearny published in May 2025.
E-wallets in particular now account for over 70% of regions e-commerce transaction value, and 50% of point-of-sale transaction value. This is the highest in any region globally, Kearney said.
Despite the shift to digital, branches still matter for consumers.
In-person support is preferred for “complex, high-value products” like mortgages and consumer lending, Kearney found. Currently, 41% of mortgages, and 59% of lending, are completed digitally.
Malaysia and the Philippines notably expanded their branch networks between 2019 and 2023, growing by 1.3% and 8.5%, respectively.
Kearney stated that this growth “attracted a significant number of new, likely unbanked customers, matching the figure for the number of branches.”
Meanwhile, Indonesia experienced a 14.3% decline in the number of physical branches. Over this time frame, non-traditional lenders and neo-banks acquired 11% of the country’s banking customers, as reported by Kearney.
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