Asia/Pacific Challengers in 2022: The Road Ahead

Description

This IDC Perspective discusses the key developments of challenger banks in Asia/Pacific and examines the cost structure and unique revenue channels that they pursue. It then explores the key drivers to growth in the region through its vast addressable market, solid payments infrastructure, and reception toward super apps. The study further highlights how challengers transform customers' experience and upend the traditional banking industry, short-term risks that lie ahead for challengers, and key advice in navigating these risks."Despite the nuances across the market, one common theme we found across Asia/Pacific is that most countries are accommodative toward digital payments, and this is reflected in their national policies and massive growth in mobile payment methods, such as ewallets," says Adam Kamarul, market analyst for Financial Insights, IDC Asia/Pacific. "In seizing this growth opportunity, challengers should reinvent financial services to best fit the needs of consumers and businesses while ensuring their operating models are sustainable from the get-go."

Product Code: AP47795421

Executive Snapshot

Situation Overview

Key Developments in Asia/Pacific
- Australia
- China
- Hong Kong
- Malaysia
- India
- Indonesia
- New Zealand
- The Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
Southeast Asia's Move to Unify Its Payment Ecosystem
Inner Workings of a Challenger Bank
- How Does a Challenger Bank Spend?
- Cloud Infrastructure
- Banking Software
- Marketing and Acquisition
How Does a Challenger Bank Earn?
- Instant and Microfinancing
- Premium Tier Subscriptions
- SMEs in Focus
- Extending Beyond Banking
Growth Drivers for Asia/Pacific Challengers
- Large Addressable Market
  - SME Customers
  - Individual Customers
- Super Apps and Network Effects
- Projecting Growth and Market Share: Lessons from Established Challengers
Analyzing Challenger's Impact on Traditional Banking and Customers
- Reshaping Traditional Banking
- Digital Only as a Market Strategy
- Driving Innovation in Financial Products and Process
- Benefiting Business and Consumers
  - Serving More People, Faster
  - Personalization in Financial Products
  - Inclusive Finance
Key Risks Ahead
- Path to Profitability
- Incumbents Are Playing Catchup
- Uncertain Economic Landscape