And they're off: the race to lead customer-first banking innovation in Australasia begins

Get ready, Australasia! The banking sector is on the cusp of its most anticipated event: The Australasian Banking Innovation Racing Carnival. This year, the Carnival highlights a race unlike any other, where success will be defined by how effectively banks adopt AI to deliver value-rich, hyper-personalised customer journeys at scale.

Banks are keenly aware that evolution and innovation aren't just buzzwords, they're the very track to future customer expectations and competitive advantage. With the transformative notion of AI and the critical importance of integrating it seamlessly across all channels, from digital platforms to the continued vital role of branch channels as community touch-points in our unique market. The strategic stakes have never been higher.

Across three pivotal races–the Australasian Digital Transformation Derby, the Australasian AI Banking Classic, and the Australasian SME Banking Stakes, each boasting a field of 16 determined contenders, we'll witness the strategies, strengths, and weaknesses that will either propel institutions to glory or leave them struggling behind. Each contest demands a customer-centric approach that leverages AI to blend digital intelligence with real-world context, one that reflects the distinctive needs of Australasia’s banking customers.

Which approaches will truly deliver the speed, efficiency, and crucial loyalty needed in our consolidating market? This preview sets the scene, with final insights and race outcomes to be revealed in a follow-up feature at the campaign’s conclusion.

This Derby is all about strategic vision and the courage to break from traditional thinking as banks modernise their core systems and digital capabilities. It's a test of endurance, where long-term architectural evolution meets the urgent demand for agility.

Favourite: Backbase Blaze (progressive moderniser), powered by the AI Banking Platform, leads with a composable, outside-in approach—enabling banks to rapidly deliver intelligent, hyper-personalised experiences while incrementally modernising their legacy infrastructure.

Pretenders: We're anticipating a tough run for those clinging to outdated strategies. Core Creator ("big bang" replatformer), despite its promise of foundational strength, is known for being notoriously slow and prone to costly delays, often delivering limited immediate customer benefits. Similarly, institutions hampered by Talent Drought (skills shortage) may find their execution too slow, costing them critical competitive momentum.

The AI Banking Classic is the frontier where Artificial Intelligence is set to revolutionise customer experiences and unlock new growth opportunities. This is the race for tomorrow's customer, demanding intelligent transformation that goes beyond mere efficiency.

Favourite: Our clear favourite, Backbase Velocity (unified customer experience) is emerging as the front-runner by embedding intelligence as a fabric across all customer channels. With scalable “agentic AI” and unified data orchestration, it delivers highly personalised, context-aware experiences that increase engagement, relevance, and share of wallet.

Pretenders: Organisations burdened by Siloed Strider (fragmented data lakes) will likely struggle to deliver consistent, intelligent customer experiences across different departments, missing crucial cross-sell opportunities. And sadly, Innovation Impasse (stagnant leadership) might not even make it out of the barriers, representing those who refuse to acknowledge the AI race is even happening, choosing to maintain the status quo and ultimately fading into irrelevance.

The SME Banking Stakes is a crucial race for financial institutions serving the unique needs of Small and Medium Enterprises (SMEs) across Australia, New Zealand, and the Pacific. Digital transformation and AI are the keys to addressing the perennial pain points in this vital segment.

Favourite: Once again, Backbase Blaze (agile champion) is again leading by enabling seamless, segment-specific SME experiences from instant onboarding to AI-driven insights and proactive financial tools tailored to small business owners across the region.

Pretender: Expect Onboarding Ordeal (client friction) to struggle significantly, as cumbersome, manual processes continue to frustrate potential new SME clients, hindering new business acquisition. Also, institutions weighed down by Legacy Laggard (monolithic hindrance) will likely be outmanoeuvred, struggling with quick innovation and integration that are absolutely vital for success in this dynamic sector.

All three races are crucial qualifiers for the prestigious Australasian Digital Banking Cup, the pinnacle event where the top contenders will showcase their comprehensive capabilities in digital transformation, AI adoption, and overall customer experience delivery. This Cup will represent not just technological prowess, but the ability to translate innovation into tangible growth and market leadership in an era of industry consolidation.

Qualification for the Cup is expected to be based on:

• Depth of AI integration for scalable personalisation

• Speed to market for deploying new experiences

• Composable infrastructure that supports agile delivery

• Customer growth and loyalty metrics as proof points