Consumers have increasingly high expectations of financial services, and banks that can innovate fast enough to keep up with their demands are the most likely to succeed, according to Boston Consulting Group on Thursday.

Speaking at the release of a report on banking sector innovation, David He, principal of BCG and head of the China Financial Services Institute, said that through the emergence of cross-industry challengers, Chinese consumers have learned much about the ideal customer experience.

"The overall expectation of the consumer base has been raised," He said. "So, for traditional financial institutions, whoever can satisfy consumer expectations first will gain the biggest market share."