Half of Apac Bank still takes months to take action in a fast world: Investigation

A new poll by FICO, Analytics software company, shows that almost half of banks in the Asia-Pacific (APAC) region still need months to develop new decision-making strategies. This slow response is that even 63% of senior bank leaders rank at the top of their priorities in their ability to update decision-making processes such as fraud detection rules or credit risk models.This disconnect is arousing concern and shifting tariff policies from the United States due to macroeconomic pressure and damage caused by cross-border trade tensions. These conditions require banks to operate with greater flexibility and speed, the report said.
“The market volatility and evolving trade dynamics require quick and decisive action,” said Dattu Kompella, managing director of FICO Asia. “Banks that build agility in their operations will be a better position to stay stable, win customer trust and stay competitive.”
FICO’s investigation also found that APAC’s banks lag behind in adopting advanced testing tools. Only 27% of respondents reported frequent use of simulation techniques, such as digital twins, which are virtual models used to test system behavior in various situations. According to FICO, this limited use may reflect a wider readiness as banks compete with increasingly complex customer behavior, regulatory requirements and financial risks.

However, there are early signs of progress. In banks using simulated environments, half of their credit and marketing strategies were actually tested before deployment. This shows that more and more financial institutions are prioritizing pre-release testing to ensure accuracy and effectiveness.

Meanwhile, 55% of banks say they are now repeating decision 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 examines banks’ perceptions of business synthesization, which refers to the ability to quickly reconfigure and scale operations in response to external changes. More than half of respondents (53%) said this ability is crucial to stay responsive in uncertain market conditions. Reliability enables banks to create decision strategies from modular components such as data sets, predictive models, and business rules, often withdrawn from multiple departments. This structure encourages cross-functional teamwork and faster innovation.

Despite its potential, many Apac banks are still in the early stages of adopting composable systems. FICO said the transition 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 it’s technology or organization,” Kompella added. “Banks can adapt to the needs of their customers and markets faster when connecting data, tools and teams.”

The FICO poll was conducted at a client event in Singapore at the end of 2024, with more than 30 senior executives and senior executives and C-Suite leaders representing banks across the Asia-Pacific region.