Please Wait.....
Report
Challenger Banks In Asia-Pacific - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020 - 2029
Market Report I 2024-02-17 I 150 Pages I Mordor Intelligence
The Challenger Banks In Asia-Pacific Market size is estimated at USD 1.68 billion in 2024, and is expected to reach USD 2.58 billion by 2029, growing at a CAGR of greater than 9% during the forecast period (2024-2029).
Even though the onset of the pandemic enhanced the need for rapid tech-led transformation for the banks and financial services players, they are still being used by many people. Digital banks, also known as neobanks, challenger banks, or virtual banks, all have in common are they often started with no physical branches and leveraged technology to differentiate their offerings in the banking sphere.The virtual banks are helping a lot of people in the Asia - Pacific region to have a smooth banking experience without visiting the bank. Asia's digital banking scene has seen rapid growth in recent years and is set to continue its growth in the months to come.
63% of banking customers in Asia-Pacific (APAC) are likely to use digital banking services offered by neobanks and challenger banks by 2025, highlighting the urgency for banks to innovate. Also many commercial places such as restauarants are now looking towards Challengers Banks as they are flexible enough, without having a need to visit any physical bank. More than 35 neobanks or challengers across APAC are built on agile innovative best practices - way ahead of incumbents in terms of flexibility, self-service capabilities, customer needs, and personalization. Consequently, with the emergence of new players and further digital disruption in the industry, 38% of traditional banks' revenues are at risk by 2025.
Additionally, a recent report has revealed that Asian Pacific countries are becoming increasingly interested in the digital banking space, with India being home to twenty percent of the global number of digital challenger banks. The report has noted that the Indian Subcontinent has witnessed the emergence of a three-pronged attack in the space, consisting of banks' own challengers such as Bank 811 and Bank Digibank, as well as new challengers such as Network, Fi Money and FamPay, as well as Open and Jupiter, as well as ecosystem players Paytm, Razorpay.
APAC Challenger Banks Market Trends
Raise in Mobile Penetration and High Unbanked Adults in the Region
The emergence of emerging markets in Asia Pacific region offers a significant potential for challenger banks, due to a number of factors, including a large unbanked population, high mobile penetration, and a rapidly expanding middle class. An estimated 250 million adults in the Southeast Asian countries are unbanked; however, only 27% of these adults have bank accounts. The majority of Asia Pacific region have a mobile penetration rate of more than 100%, surpassing the penetration rate of the United States, and comparable to that of Europe. In Indonesia, only 48% of adults aged 15 years and above have bank accounts, while in Malaysia, over 2 million adults are unbanked. In Vietnam, only 30% of those aged 15 years and older have bank accounts, and in the Philippines, only 32% of the population aged 15 and over have bank accounts. India had a smartphone penetration rate of 56% which is estimated to go up to 96% by 2040. Even though 81% of the country's population has access to at least one bank account, the financial inclusion levels are yet to improve. Though 38.2 million beneficiaries were added to the Pradhan Mantri Jan Dhan Yojana (PMJDY), only 8.9 million were issued RuPay cards.
Financing Activity on Rise into Challengers in Asia-Pacific
In recent years, there has been a surge in equity financing or mergers and acquisitions (M&A) in the market, as challenger banks have become increasingly attractive to investors and have been able to demonstrate to them that their business model and valuations appear to be realistic. A prime example of this is Kakao, an internet-only Korean bank, which was launched by Kakao Communications, a communications company. Within 24 hours, Kakao Bank had 300,000 new customers, 930 million USD in deposits in a week, and more than 6,500 million accounts in one year, surpassing the annual average of some incumbents and challenger banks. Moreover, Paytm Payments Bank was established in India as a subsidiary of Paytm, a leading mobile payment company. The bank provides a wide range of financial services, including savings, current, and fixed deposits, along with debit cards and wallets. Additionally, payments can be made in real-time through India's Unified Payments Interface (UPI), FASTag, and other payment instruments. It is one of the most prominent digital banks in India, with a customer base of over 330 million, including 65 million current accounts and 5 million savings accounts. Similarly, numerous challengers appear to have built up the trust of investors to invest in their firms, and the infographic below provides an overview of the financing activities of the challengers in recent years.
APAC Challenger Banks Industry Overview
The report includes an overview of challenger banks operating across the region. Currently, some of the major players dominating the market are WeBank, MY Bank, EON Bank PH, Paytm Payments Bank, and Jenius Bank, among others. The market is moderately fragmented with the major players occupying approximately 42 % of the market share but the other players also occupied a signifacnt percentage of the market share. Technology adoption in the sector, government initiatives toward changes in challenger banks regulations, merger and acquistion by the companies, and many other factors can drive the market during the forecast period.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increase in Internet Penetration is Driving the Market
4.3 Market Restraints
4.3.1 Government Policies Regarding the Challengers Bank Market
4.4 Market Opportunities
4.4.1 Use of Advanced Technology by the Market Players
4.5 Insights on Impact of Technology and Innovation in Operation in Challengers Banking System
4.6 Industry Attractiveness - Porter's Five Force Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Impact of COVID-19 on the Market
5 MARKET SEGMENTATION
5.1 By Service Type
5.1.1 Payments
5.1.2 Savings Products
5.1.3 Current Account
5.1.4 Consumer Credit
5.1.5 Loans
5.1.6 Others
5.2 By End-User Type
5.2.1 Business Segment
5.2.2 Personal Segment
5.3 By Country
5.3.1 China
5.3.2 South Korea
5.3.3 Australia
5.3.4 Hong Kong
5.3.5 India
5.3.6 Indonesia
5.3.7 Philippines
5.3.8 Malaysia
5.3.9 Singapore
5.3.10 Rest of Asia-Pacific
6 COMPETITIVE LANDSCAPE
6.1 Market Competition Overview
6.2 Company Profiles
6.2.1 WE Bank
6.2.2 MY Bank
6.2.3 Eon
6.2.4 Paytm Payments Bank
6.2.5 Digi bank
6.2.6 Jenius
6.2.7 SBI Sumishin Net Bank
6.2.8 Kakao Bank
6.2.9 K Plus
6.2.10 Timo
6.2.11 Volt
6.2.12 Xinja
6.2.13 BigPay
6.2.14 Neat*
7 FUTURE OF THE MARKET
8 DISCLAIMER AND ABOUT US
- Not Sure / Need Reassuring
- Confirm Content
-
Content is provided by our partners and every effort is made to make Market Report details as clear as possible. If you are not sure the exact content you require is included in this study you can Contact us to double check. To do this you can:
Use the ‘? ASK A QUESTION’ below the license / prices and to the right of this box. This will come directly to our team who will work on dealing with your request as soon as possible.
Write to directly on support@scotts-international.com with details. Please include as much information as possible including the name of report or link so our staff will be able to work on you request.
Telephone us directly on 0048 603 394 346 and an experienced member of team will be on hand to answer.
-
- Sample Pages
-
With the vast majority of our partners we can obtain Sample Pages to support your decision. This is something we can arrange without revealing your personal details.
It is important to note that we will not be able to provide you the exact data or statistics such as Market Size and Forecasts. Sample pages usually confirm the layout or the Categories included in Charts and Graphs, excluding specific data.
To ask for Sample Pages by contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Check for Alternatives
-
Whilst we try to make our online platform as easy to use as possible there is always the possibility that a better alternative has not been found in your search.
To avoid this possibility Contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346 and a Senior Team Member can review your requirements and send a list of possibilities with opinions and recommendations.
-
- Confirm Content
- Prices / Formats / Delivery
- Prices
-
All prices are set by our partners and should be exactly the same as those listed on their own websites. We work on a Revenue share basis ensuring that you never pay more than what is offered elsewhere.
Should you find the price cheaper on another platform we recommend you to Contact us as we should be able to match this price. You can Contact us though through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Discounts
-
As we work in close partnership with our Partners from time to time we can secure discounts and assist with negotiations, this is part of our personalised service to you.
Discounts can sometimes be arranged for speedily placed orders; multiple report purchases or Higher License purchases.
To check if a Discount is possible please Contact our experienced team through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Available Currencies
-
Most Market Reports on our platform are listed in USD or EURO based on the wishes of our Partners. To avoid currency fluctuations and potential price differentiations we do not offer the possibility to change the currency online.
Should you wish to pay in a different currency to that advertised online we do accept payments in USD, EURO, GBP and PLN. The price will be calculated based on the relevant exchange rate taken from our National Bank.
To pay in a different above currency to that advertised online please Contact our team and a quotation will be sent within a couple of hours with payment details.
-
- Licenses
-
License options vary from Partner to Partner as is usually based on the number of Users that will benefitting from the report. It is very important that License ordered is not breached as this could have potential negative consequences for you individually or your employer.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Global Site License
-
The Global Site License is the most comprehensive license available. By selecting this license, the Market Report can be shared with other ‘Allowed Users’ and any other member of staff from the same organisation regardless of geographic location.
It is important to note that this may exclude Parent Companies or Subsidiaries.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Formats
-
The most common format is PDF, however in certain circumstances data may be present in Excel format or Online, especially in the case of Database or Directories. In addition, for certain higher license options a CD may also be provided.
If you have questions or need clarification about the specific formats we recommend you to Contact us and a detailed explanation will be provided.
-
- Delivery
-
Delivery is fulfilled by our partners directly. Once an order has been placed we inform the partner by sharing the delivery email details given in the order process.
Delivery is usually made within 24 hours of an order being placed, however it may take longer should your order be placed prior to the weekend or if otherwise specified on the Market Report details page. Additionally, if details have been not fully completed in the Order process a delay in delivery is possible.
If a delay in delivery is expected you will be informed about it immediately.
-
- Shipping Charges
-
As most Market Reports are delivered in PDF format we almost never have to add additional Shipping Charges. If, however you are ordering a Higher License service or a specific delivery format (e.g. CD version) charges may apply.
If you are concerned about additional Shipping Charges we recommend you to Contact us to double check.
-
- Prices
- Ordering
- By Credit Card
-
We work in Partnership with PayU to ensure payments are made securely in a fast and effortless way. PayU is the e-payments division of Naspers.
Naspers operates in over 133 International Markets and ranks 3rd Globally in terms of the number of e-commerce customers served.
For more information on PayU please visit: https://www.payu.pl/en/about-us
-
- By Money Transfer
-
If you require an invoice prior to payment, this is possible. To ensure a speedy delivery of the Market Report we require all relevant company details and you agree to maximum payment terms of 30 days from receipt of order.
With our regular clients deliver of the Market Report can be made prior to receiving payment, however in some circumstances we may ask for payment to be received before arranging for the Market Report to be delivered.
-
- By Credit Card
- Security
- Website security
-
We have specifically partnered with leading International companies to protect your privacy by using different technologies and processes to ensure security.
Everything submitted to Scotts International is encrypted via SSL (Secure Socket Layer) and all personal information provided to Scotts International is stored on computer systems with limited access in controlled environments.
-
- Credit Card Security
-
We partner with PayU (https://www.payu.pl/en/about-us) to ensure all credit card payments are made securely in a fast and effortless way.
PayU offers 250+ various payment channels and eWallet services across 4 continents allowing buyers to pay electronically, whether on a computer or a mobile device.
-
- Website security