Digital banks in South-east Asia face profit pressure as rates slump and credit risks rise
Preserving deposits and embedding products within ecosystems could prove vital, say market watchers
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[SINGAPORE] Digital banks in South-east Asia could be hitting an inflexion point, as falling interest rates and rising credit risk pose roadblocks in the industry’s nascent rise.
The path towards profitability remains a difficult journey for many digital banks in the region. Neither Singapore nor Malaysia have had any players turn a profit.
Falling interest rates have further dealt South-east Asia’s digital banks a bad hand, as the region’s central banks surprised markets by easing policy in the face of market uncertainties.
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