Philippines, Malaysia, Indonesia, Vietnam have a huge potential in APAC for virtual banks
Details:
- Philippines, Malaysia, Indonesia and Vietnam have the highest prospects for online banking virtual banks in Asia
- High unbanked population and rising middle class in these markets
- Ranking was evaluated based on the the following
- Market size for digital services
- Demand for digital financial services
- In-country online banks
- Market factors and tendencies
- Consumer Aspects
Per a new study conducted by UnaFinancial, the Philippines, Malaysia, Indonesia and Vietnam have the highest prospects for virtual banks in Asia.
Southeast Asia has long been recognized as one of the largest markets for tech, specifically the digitization of services. This is due to the high internet penetration rates in the region combined with a rising middle-class population.
In addition, with a market of over 630 million inhabitants, half of whom are without a traditional bank account, this creates a great opportunity for neobanks and fintech companies to leverage on. For instance, a lot of tech startups are now offering solutions to the region’s unbanked population, a trend that has accelerated further since the onset of COVID-19.
The report was evaluated based on two main criteria: the country’s attractiveness for online banking and the levels of competitiveness within the segment.
Factors being evaluated for market attractiveness includes the following:
- Consumer aspects (target audience, unsatisfied demand)
- Market factors (potential volume of the sector, market regulation)
- Market tendencies (growth in the use of digital financial services, changes in consumer behavior and more)
On the other hand, market strength was evaluated based on
- Size of the market for digital services
- Demand for digital financial services
- Presence of in-country online banks
Through these parameters, the countries were evaluated and listed as either among the weak, medium, or strong categories.