, Singapore
594 views

Southeast Asia’s neobank market to grow 50% in 2021

Funding and winding down of the pandemic’s impact on the economy will push this market.

Southeast Asia’s neobanking market is expected to grow by 50% in 2021, according to analysts from Singapore-based firm fintech services provider UnaFinancial. APAC-wide, the market will grow by 24%.

Higher funding and resumption of neobanks’ plans following disruptions due to the pandemic will push more digital-only banks to debut or clinch licenses this year, the study said.

Whilst the pandemic was noted to have slowed the development of digital-only banks in 2020, it has created strong potential for the segment moving forward, UnaFinancial said, with one of the factors contributing to this emerging growth being the delayed entry of new players last year.

“In January 2020, 21 companies applied for digital banking licenses in Singapore, and 4 companies did so in Malaysia. However, the pandemic disrupted these plans: in Singapore, only 4 licenses were issued, and in Malaysia, the licensing process was completely suspended and moved to 2021,” the study read.

More licenses were approved and more neobanks debuted by end-2020. Accordingly, five neobanks had already entered the South and Southeast Asian markets, with at least 10 companies following them in 2021. This marks the resumption of the neobanks development in the foreseeable future, UnaFinancial said in the study.

“The demand for online banking services among the population has also contributed to the growth of neobanking. Despite the general cautiousness, online banking saw a rise in popularity due to lockdown restrictions and remote work,” the study read.

Following this upward trend, funding of neobanks in APAC countries in 2020 also rose by 22.8% compared to 2019.

Based on this, UnaFinancial said that it has estimated the growth of neobanks funding in 2021, and expects the market is expected to grow by 24% in APAC, and by 50% in SEA.

In SEA, the development of the segment will be led by Indonesia, Singapore, Malaysia, and the Philippines; while in South Asia, the leading country will be India.

Follow the link s for more news on

Pembekuan pendanaan menghantam penyedia layanan BNPL

Investor semakin sedikit mengalirkan dana ke penyedia layanan BNPL yang sudah menghadapi keuntungan margin yang tipis.

HSBC: Aliansi bank-fintech merupakan win-win

Pemberi pinjaman dapat belajar dari teknologi disruptif sambil membantu mereka mematuhi regulasi.

Tokenisasi aset perdagangan untuk menjembatani kesenjangan pembiayaan

Teknologi blockchain dapat mendesentralisasikan operasi keuangan dan mempermudah akses kredit.

BCA menjalankan komitmen terhadap keuangan berkelanjutan

Bank asal Indonesia ini mempertimbangkan aspek lingkungan dan tata kelola dalam keputusan pemberian pinjaman.

Mengapa UNOBank mendorong embedded finance tumbuh di Filipina

Bagi UNOBank, banking interface terpadu adalah strategi pertumbuhan sekaligus upaya inklusi keuangan.

OCBC mencoba mengurangi kesenjangan manfaat bagi agen properti di Singapura

Produk terbarunya menawarkan manfaat finansial di bidang perbankan, asuransi, dan perdagangan.

Upaya Malaysia menjadi anggota BRICS untuk mendorong perombakan sistem perbankan

Namun, tantangan muncul ketika menjauh dari ketergantungan pada AS dan SWIFT.

Platform pembayaran PingPong memperoleh lisensi PJP di Indonesia

PingPong mengincar ekspansi ke pasar ekspor senilai $320 miliar di negara tersebut.

Merger dan penutupan mengancam 3.800 bank di area pedesaan Cina

Sekitar 70 bank di area tersebut telah merger sejak 2023.