With Lendo now trademarked in Singapore, we are poised to make the most of the ever-increasing opportunities for fintech-led banking in Asia.
Asia is a populous region with a significant number of under-banked people ready to be served by Lendo’s services. Furthermore, Asia will reach over US$900 billion in retail banking revenue by 2020, growing at about 14% per year, according to McKinsey & Company, and is expected to be the second largest wealth management region globally after the US, with more personal financial assets residing in Asia than Europe.
We have been observing some of the new banking trends in Asia, one of which is the emergence of payment banks.
Payments banks are a new banking model conceptualised by the Reserve Bank of India. These banks can accept a restricted deposit, which is currently limited to 95,000 rupees per customer and may be increased further. They cannot issue loans and credit cards, but they do offer both current account and savings accounts. Also, payments banks can issue services like ATM cards, debit cards, online banking and mobile-banking.
Changing consumer behaviour
For fintech-led banks to succeed, consumer behaviour needs to change. And that is exactly what we are seeing in this region. According to Fintech News Hong Kong: “One major trend in retail banking in Asia is the move to a customer-centric understanding of the banking journey. Consumer banking now goes beyond banks digitalizing their banking services and is more about empathizing with customers, understanding their needs, frustrations and aspirations, and using that as a basis to eliminate pain points and provide practical solutions.”
The article also points to a recent EY consumer banking survey, which revealed “trust, convenience and personalization form the foundation of today’s customers’ relationship with their bank.”
Furthermore, research conducted by the Economist Intelligence Unit (EIU), showed 55% of bankers surveyed in the Asia-Pacific region (APAC) think that changing customer demands and behaviour will have the biggest impact on retail banks in the next three years.
Lendo is looking forward to offering consumers in the Asian market the type of banking service that they are looking for, and growing Lendo in this major world market.