Sector Report

Asean digital banking – Disruption by degrees

by Neel Sinha / Mar 7, 2023


Selective prospects for true digibanking in Asean

Mobile wallet and epayment comprise the bulk of Asean digibanking services, as deposit taking and loans have yet to take off. Currently, high interest rates are the main funding challenge. We believe Indonesia and the Philippines are the most attractive growth markets, given fewer expansion opportunities in Singapore and Malaysia. Thailand and Vietnam’s regulatory frameworks are still in an evolutionary state.

How to play the theme

Despite near-term challenges, digibanks are here to stay due to the sector’s technological evolution and consumer adoption. We expect a handful to be successful in each Asean country, with traditional banks having a head start in some markets after adopting initiatives earlier than others.

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