Rethinking the opportunity for SEA’s digital banks

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Hello reader,

On a recent trip to Malaysia, one of my friends espoused the benefits of getting a credit card with Trust Bank Singapore, the digital bank developed by Standard Chartered and FairPrice Group.

“They have zero annual fees, and they don’t charge forex for overseas spending,” she said, waving her phone – which displayed how much she’d spent with her card all over Resorts World Genting – in my face.

I’ll have to admit, after seeing the numbers, I’m convinced, especially when I compare it to the rates on my credit card.

(Note: This newsletter is not brought to you by Trust Bank. I’m just recounting my experience.)

Anyway, where I’m going with this is that digital banks have the edge on legacy institutions by offering products and services that traditional players don’t or can’t.

While digital banks have been touted as a solution to financial inclusion, their opportunity may not lie in the unbanked but in those of us who are not-so-happily banked, as we find out in today’s premium story.

Today we look at:

• The hard realities facing Southeast Asia’s digital banks
• A fresh investment into a sustainability-focused VC firm
• Other newsy highlights such as the departure of Daraz’s CEO and Singapore’s Infocomm Media Development Authority’s green computing research initiative

Premium summary

The question of digital banking

Image credit: Timmy Loen

Digital banks have come up in Southeast Asia in the last few years, with several markets having given out digital banking licenses.

These players have been touted as a key to driving greater financial inclusion for the underbanked and unbanked. However, that’s not quite what’s happening.

A shift for good

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