Digital banks should count on more than ecosystems, tech to expand in South-east Asia

DIGITAL banks have emerged in South-east Asia as a means to reach out to the underbanked or underserved segments in a cost-effective manner. But strong competition is putting their strengths to the test.

Market observers said that for digital banks to succeed in the region, they will need to depend on more than their tech capabilities and ecosystems.

“Ecosystem partnerships are necessary for banks to attract customers, but they also need to differentiate and provide unique value propositions such as superior customer experience, better rewards or better interest rates,” said Liu Meng, senior analyst at Forrester.