Some companies have acquired cryptocurrencies for their corporate treasuries despite the volatility. MicroStrategy, the public company that holds the most bitcoin on the balance sheet, remains bullish on bitcoin.

The COVID-19 pandemic has exerted substantial impact on the profitability of banks in Asia Pacific, although most are better positioned to weather this crisis than during the global financial crisis

Digital banks in Asia Pacific witnessed improving overall profitability in FY2019. Although some digital banks’ net profit in FY2020 has been affected by COVID-19 pandemic, their growth outlook remains optimistic.

These are the leading countries where new payment options are creating new opportunities and disrupting the incumbents

Retail banking sector has been the main growth driver for Indian banking sector during the past few years, as banks’ exposure to corporate banking sector has been reduced due to bad loans problems. Their retail lending has grown at a compound annual growth rate (CAGR) of 16.2% over the FY2013 to FY2018 period, making India's retail banking one of the biggest among emerging markets.

As the race towards digitalisation intensifies, the relationship between banks and “big tech” companies is increasingly marked by collaboration and synergy, not just competition

Digital-only banks pose serious challenges to the traditional financial services industry with their entirely new banking experience. However, for most of them, licensing, scale and profitability are the three key issues they must face going forward.

Crypto markets have seen recent spikes and increased volatility as more mainstream companies and speculators continue to join the digital asset trading and investment bandwagon. The impressive rise of other cryptocurrencies beside Bitcoin has dented its market dominance.

WeBank of China, Ally Bank in the US, and the retail arm of ING Group, topped The Asian Banker's the inaugural global ranking of leading digital banks.

The financial services industry is undergoing a massive shift to cloud, but the challenging technology transition for incumbents requires a strategic rethink of architecture, data, people and processes.

The continuous expansion of the crypto market and the innovations it promises have been closely watched by the financial services industry, particularly by regulators. While it continues to face an uncertain, future. several factors, including the constant offering of new cryptos, new use cases in DeFi and CeFi application, increasing number of users, and structural changes and innovation in financial markets will determine its long-term growth.

The total capitalisation of digital assets surged three-fold in 2021, with strong evidence that the momentum is likely to continue into the new year. DeFi users are expected to continue their exponential growth over the next 12 months, with more institutional investors moving into the space, combined with greater clarity over regulators’ stance in the large economies such as China and the US. What challenges and uncertainties could lie ahead to derail the upbeat outlook?

Mobile-based payment platform OPay has grown exponentially since its launch in 2018, penetrating the unbanked and underbanked population in Nigeria. It allows users to send and receive money, pay bills, and order food and groceries, with a network of thousands of agents.

New digital financial infrastructure, new regional free trade agreements, and decisive leadership in the emerging sustainability and green agenda bode well for international RMB adoption.

Global mobile phone users are projected to reach 4.8 billion by 2025, compared with 2.8 billion users in 2020. Businesses are tapping into this vast market as mobile wallets gain an increasing share of the payments market.

As the trade finance industry collectively progresses to address challenges around digital fragmentation and isolation, adoption of standard solutions and well-established legal frameworks along with technology as an enabler will play critical roles in truly digitalising trade.

Commercial banks such as DBS Bank and traditional exchanges such as the Singapore Exchange have one thing in common: they are setting up and adding digital exchanges and platforms to their existing business lines.

The global financial industry has evolved as a result of the widespread digital transformation of traditional banks and the entrance of new digital banks. In the Middle East, the legal framework is slowly developing, which will open up the market to more digital banks.

Despite weak growth in the banking industry last year, UOB managed to grow its SME deposits significantly and reported the lowest CIR among its peers. It was also the first bank to announce $2.2 billion in relief assistance in February 2020, ahead of any government support measures. It was the leading provider in government’s assistance schemes to SMEs with the largest market share.

A year after Hong Kong issued eight digital banking licences, Mox and ZA Bank have emerged as the early leaders. Together with WeLab, the three banks account for 86% of all virtual banking deposit in Hong Kong.

The rapid transformation of domestic and cross-border payments brings new opportunities and challenges for financial institutions.Amid shrinking payment margins, players are rethinking their business models to better monetise data insights and integrate financing options such as “buy now, pay later” (BNPL). Industry experts share their views on the impact of this changing landscape, emerging value propositions, and key technology enablers for future growth

Market development, operational challenges, and payment preferences are going to shape consumer engagement with the new instant payment platform

The inaugural BankQuality™ Consumer Survey and Rankings in the Middle East interviewed 3,000 customers in three key markets in the region on their engagement, experience and satisfaction with their main retail banks.

Tech giants, which make up some of the world’s largest companies, are muscling into traditional banking spaces. But whether they want to crush the traditional finance players or enable them, they are learning across the globe that disrupting well-regulated banking systems is easier said than done

The inaugural BankQuality™ Consumer Survey and Rankings interviewed 11,000 bank customers in 11 markets across the Asia Pacific region on their engagement, experience and satisfaction with their main retail banks.

The German fintech’s dramatic collapse is likely to reshape the payment processing landscape as market rewards players leading innovation and value creation

The use of RMB in international transactions will increase despite US-China trade frictions and on-going COVID-19 pandemic according to the latest annual survey on RMB internationalisation conducted jointly by China Construction Bank and Asian Banker Research.

While fintechs may take some market share away in specific niches, the partnerships, analytics, and value-add that leading banks are developing can keep head of the game. Banks that fail to keep up could lose a significant share of their SME business

Several key themes emerged amidst the many discussions by global leaders in payments, including QR code, blockchain, credit card schemes, fintech and data consolidation

The bank onboarding process should be fast, as the most fundamental attribute of an exceptional account opening experience is speed

As real-time processing becomes the norm in domestic payments, how long would it take for cross-border payments to catch up?

Global and regional cash management banks across Asia-Pacific are making substantial investments in digital initiatives to enhance the overall transaction experience of their clients.

Electronic channels and bank agnostic platforms are transforming traditional trade finance functions across Asia Pacific

The Asia Pacific banking industry will continue to see a rise in demand and salary among highly skilled technical workers in the backdrop of ongoing digitalisation.

While much of the focus for quarterly results at DBS was on profits and non-performing loans, the impact of digitisation on expense reduction was striking and the bank’s plans for the next ten years pave the path towards even greater efficiency.

Most Asia Pacific markets have witnessed a slowdown in unsecured consumer loan growth, as regulations tighten and more alternative lending options are made available to borrowers. To stay relevant, banks are slowly digitising the business while also closely monitoring credit quality.

Customised financial advice had, for many years, been available almost exclusively to private banking clients or to the mass affluent. However, robo-advisors are offering the same advice to many more consumers. Customers in Asia, from the man on the street to the ultra-wealthy, seem ready to embrace these new robo-advisors.

Credit card issuance and usage wane as digital and mobile payments increase in popularity.

While many financial institutions in emerging markets are trying to strike the right balance between their physical footprints and digital presence, leading banks in mature markets are proving that digital transformation can boost profitability and efficiency.

Digitisation in the cross-border money transfer industry might leave fewer opportunities for incumbent banks and operators to grow. How they cultivate alliances and digital innovation to stay ahead of competitive will be critical moving forward.

Increasing adoption of digital payments has resulted in stiff competition within the industry. Non-bank payment players have become more aggressive, aiming to grow into full scale financial service providers.

Shinhan Bank has launched Korea’s first full service biometric-enabled and unmanned smart digital kiosks that allow customers to do financial transactions through real-time video interaction without the need to visit a physical branch.

New payment options in the market are creating new opportunities, making competition fiercer, and reducing the use of cash and cheques.

Formal financial institutions have connected only 22% of the Indonesian population. A huge potential for the financial sector still needs to be explored, and digitised lending, which combines retail banking with financial technology, should be a future solution.

Banks are integrating new technologies into their core businesses to improve their digital banking presence and speed-to-deliver

As trials move into actual implementations, global financial markets and monetary systems will be disrupted and transformed.

The rapid digitalisation of MSMEs, emergence of new digital-native business models and niche segments have become a key focus area for financial technology companies to serve.

Growing transaction volumes are pushing Indian banks to rethink technology architecture to integrate cloud and data capabilities to meet growing transaction volumes. Indian fintechs and digital players see consumer growth, but also increased expectations and competition.

The Asian Banker’s survey across financial institutions (FIs) in seven countries in Asia reveals emerging trends in cybersecurity risks and fraud, pressing challenges and technology areas prioritised.

Consumers chose Indonesia’s Bank Central Asia as the Most Recommended Retail Bank, and DBS Singapore as Most Selected Main Bank in APAC in the 2023 BankQuality Survey

Indonesia’s Bank Central Asia, DBS Singapore, South Korea’s Toss Bank, and China’s Alipay were voted the Most Recommended Retail Bank, Most Selected Main Bank, Most Recommended Digital-only Bank and Most Recommended Platform, respectively, in the 2023 BankQuality™ Consumer Survey

UnionBank topped the 2023 BankQuality™ Survey in the Philippines as the Most Recommended Retail Bank, achieving a score of 67%, tying with Metrobank but with varying margins across key categories

Consumers in India rated ICICI as the Most Recommended Retail Bank in the 2023 BankQuality™ Survey with a score of 69%, while Paytm scored 64% and rated as the Most Recommended Digital-Only Bank

Consumers in Thailand voted Kasikornbank as the Most Recommended and Most Selected Main Retail Bank in the 2023 BankQuality Survey; Siam Commercial Bank placed second while Line BK emerged as highly-rated digital-only bank

The combined revenue of the top 100 global digital-only banks increased by 16% to reach some $66 billion, with China’s WeBank, Ally Bank from the US, and the retail arm of ING Group in the lead in 2023

The current disintermediation in payments and MSME lending marks the tip of the iceberg, and retail deposits may be the next battleground

Disintermediation by digital wallets and decentralised finance platforms is shifting deposit business dynamics, requiring conventional banks to innovate and stay competitive

The financial services market size in the metaverse is predicted to drop from 22% to 6% by 2030—its fall from tech wonder to half-baked idea in financial services requires differentiation in its value proposition to secure success

With a large portion of Africa’s population still lacking access to traditional banking services, particularly in places banks fear to tread, payment providers have stepped into the breach, gaining in popularity for offering services beyond the usual payments, money transfer and savings

Digital currencies are revolutionising global finance and erasing borders, and while DeFi and the creator economy drive privacy-focused systems independent of governments, the narrative centers on traditional finance and DeFi convergence

Taiwanese consumers voted E.Sun Bank as the Most Recommended Retail Bank, giving it a 13% BankQuality™ Score. CTBC Bank emerged as the Most Selected Main Bank, securing 20% of the bankable population for primary relationships

Hong Kong consumers voted Citibank as the Most Recommended Retail Bank with a BankQuality™ Score of 19%, Airstar Bank as the Most Recommended Digital-Only Bank with 12%, and Octopus as the Most Recommended Platform with 14%.

According to a TABInsights survey on technology investment, FI in APAC prioritise data management, advanced analytics and digital banking capabilities

Banks and other financial institutions in China are quicker to adopt new technologies to improve core banking infrastructure, strengthen lending, and enhance compliance

Malaysian consumers voted Maybank as the Most Recommended Retail Bank, while Touch ’n Go emerged as the Most Recommended Platform in the latest BQS™

The shift in global supply chains is accelerating demand for new financing programmes and solutions that aim to accelerate and improve trade digitalisation processes

An altered operating environment has led treasury to reprioritise their investment and liquidity management strategy, with cash management providers offering enhanced solutions

Banks in the Middle East and Asia Pacific showcased outstanding operational efficiency, with Qatari banks achieving exceptional cost-to-income ratios by leveraging superior IT infrastructure, offering cost-effective digital services, and tailoring branch networks to cater to smaller populations

Trade finance is gradually digitalising amid evolving e-commerce models, driven by technology and sustainability; the $2.5 trillion global trade finance gap affecting SMEs prompts innovation in blockchain, tokenisation, and sustainability, despite geopolitical complexities

Banks have been investing in AI over the last few years, focusing on specific use cases. They must now scale AI across their business processes and incorporate emerging advancements in GenAI.

Transaction banks in the Middle East are expanding services in non-oil businesses with high growth potential, in line with economic diversification, and to mitigate geopolitical instability in countries in the Gulf Cooperation Council

Banks in Asia Pacific invested an estimated $63 billion towards technology in 2022. The annual spending on technology is expected to increase by 7.5% in 2023 to $68 billion.

Philippine digital banks saw rapid growth in 2023 alongside mounting concerns over credit quality as gross NPL ratios soared

The global use of Renminbi is influenced by geopolitics, macroeconomic conditions, infrastructure, and technology

A prominent player in Southeast Asia’s digital finance sector, the group saw significant growth in 2023, cutting losses by 29% despite a challenging economic environment

Nubank has reported its first full-year profitability since its launch in 2014. Nearing 100 million customers, the bank has set new benchmarks in revenue

The top 10 digital banks saw revenue grow from $41 billion in 2022 to about $49 billion in 2023

JPMorgan Chase, China Construction Bank, and Emirates NBD claimed leading spots in this year’s ranking, with JPMorgan Chase standing out in retail financial performance and digital customer base

Alipay retains its top spot in this year’s ranking, while Apple Pay climbs higher with its expanded financial services ecosystem

The popularity of Bank Central Asia reflects a trend of traditional banks embracing digital innovation to meet customer preferences