This has been coupled with unrelenting competition from financial technology (fintech) operators and neobanks that operate exclusively online and offer bespoke bank-like services to customers. An underbanked population, combined with the convenient, contact-free and ‘always-on’ affordances of these services has seen the market explode in the region. Adoption is set to increase by 50% through to the end of 2021.
Recent events have given rise to a new set of opportunities and challenges for banks in Southeast Asia.
Region-wide lockdowns and economic instability have seen individuals and SMEs across the region turn to digital banking more than ever before, to adjust loan repayments and gain access to financial aid.
