In Asia Pacific, the Philippines, Malaysia, Indonesia and Vietnam have the highest prospects in Asia for online banking (neobank) right after Australia, as per a new study.
The report released by UnaFinancial, a group of companies providing fintech services in eight markets in Asia and Europe, considered 12 countries from the region and analysed the results based on two main criteria: the country’s attractiveness for online banking and the levels of competitiveness within the segment.
The market attractiveness was evaluated based on consumer factors (target audience, unsatisfied demand), market factors (potential volume of the sector, market regulation), and market tendencies (increase in digital financial services use, possible changes in consumer behavior, etc.)
The market strength was assessed based on the size of the digital services market, the level of demand for digital financial services, and the presence of online banks in the country.
Using these parameters, all countries were evaluated and placed either among the weak, medium, or strong categories.
Also Read: V3, EZ-Link-led consortium, BEYOND joins Singapore’s digital banking license race
While the Southeast Asian countries hold the same degree of market attractiveness as India and Singapore, the lower levels of competition within these regions as compared to the rest place them as the winners.
Other key highlights –
1. Australia is the most attractive country for online banking,
2. Bangladesh, Myanmar, Cambodia, and Sri Lanka are not promising for the development of online banking,
Southeast Asia has long been hailed as one of the largest markets for digitisation with high internet penetration rates coupled with a rising middle-class population, making it a ripe market of over 630 million inhabitants, half of whom are without a traditional bank account.
Noticing this issue, a lot of tech startups are turning towards offering solutions to the region’s unbanked population — a trend that has leapfrogged since the onset of COVID-19.
UnaFinancial is a group that has served more than 12 million customers and provided financing in the amount of US$900 million.
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Image Credit: UnaFinancial
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