The race on digitizes banking is intensified across the Asia Pacific region. According to a report from EIU, the intense competition is between established retail banks, technology companies, and e-commerce. Experts expect that the battle may threaten the payment solution market of Asia-Pacific.
Here is the list of Asia-Bank top threat.
Also read: China Shapes Asia’s Fintech
Technology and online payment giants
Technology giants companies and online payment platforms are the biggest threat to Asian Pacific banks. They reached 60% of the total threat.
Technology giants including Google, Alibaba, and Apple is the highest threat (32%). Besides, online payment platforms like Paypal, Ripple, and Alipay scored 28% of the total threat. Other than them, Neo-Banks also become the Asia Pacific Banks’ threat. Neo-banks include Volt Bank, Varo Money, and Monzo. They are 25% of Asia Pacific banks’ threat.
In order to cope with these threats, most Asia Pacific banks have reorganized their strategy. Until 2020, 37% of them prioritize digital marketing engagement strategy, according to the same report.
The seNew technologies are also growing rapidly in the Asia Pacific. Thus, it also becomes Asia Pacific banks top threat. They include artificial intelligence (AI), machine learning, and blockchain. Most of the new online banking and payment platform has used those technologies. Consequently, they have a better marketing strategy and customer engagement. The report also predicts that by 2025 retail banks will lose the battle if they don’t use these new technologies.
Asia Pacific countries are currently trying to catch up to world technology regulation. They try to adopt the regulation on data protection and digital taxation. The regulation becomes essential since that will also affect the banking sector in the future.
Some Asia Pacific countries have made progress in regulating new technologies. For instance, in China, they give tighter regulation on license and data protection. Those two regulations were initiated to diminish Alipay and WeChat duopoly across the broader region.