Will SEA’s packed digibanking space overflow as firms stream in?

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Several major firms in Southeast Asia have ventured into digital banking, drawn by the region’s large population of tech-savvy yet unbanked or underbanked consumers. The mobile internet penetration rate is quite high and still growing, opening a window of opportunity for companies to make profits while promoting financial inclusivity.

Even more mature markets such as Singapore have caught the digibank bug. Just last week, SingTel and Grab rolled out a joint venture called GXS Bank for the retail market. Standard Chartered followed shortly, teaming up with FairPrice Group to launch Trust Bank in the city-state.

Yet as established banking giants remain entrenched in Singapore, my colleague Melissa has drawn attention to the skepticism around the value of adding more digital banks. The same can be said for Malaysia, where the fintech ecosystem is taking shape despite a high banking penetration rate of 96%.

The nation’s five successful digital bank applicants are likely to face strong resistance from incumbent traditional banks, which are fast introducing digital offerings of their own in a saturated market.

Tech in Asia has shed some light on the shifting landscape of Vietnam’s fintech sector and how digibanks in Indonesia – Southeast Asia’s largest economy – are taking different routes on the road to profitability via a set of premium stories.

But today’s featured piece goes further, spotlighting not only the significant digibanks in the region but also delving into the strategies adopted by digital banks in each ASEAN country.

Today we look at:

• SEA’s key digital banking players
• A SG healthtech firm’s massive funding round
• Other newsy highlights such as how ByteDance’s IPO plan is now on the backburner and Kopi Kenangan’s impending Malaysia entry.

Premium summary

Banking plays catch up in the online realm

Image credit: Timmy Loen

From getting together with friends and family to ordering food and groceries, tech-savvy consumers are digitally connected in almost all facets of their lives. It’s only natural that they would want to extend this ease and convenience to banking and payment.

Luckily for banks, the requisite tech to provide a secure customer experience is already available. But as the timeline for digital change becomes shorter, it is inevitable that a few players will get left behind if they don’t try to stay ahead of the curve.

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