Digital wallets are driving a transformation of financial services around the world. The gross transaction value of all platforms in Southeast Asia grew by 9% in 2021. E-commerce is believed to be leading the charge, with the compound annual growth rate for digital wallets set to grow by 17% until 2025.

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

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.

While crowdlending in Asia Pacific shows early promise, its fate will be dictated by how regulators and banks respond to the challenges they pose.