The Rise of Financial Services in Asia: Opportunities for Incumbents and Non-Financial Companies

The rapid wealth creation in Asia has created an attractive environment for companies looking to expand their provision of financial services. This article explores the opportunities presented by this growth and examines how incumbents and non-financial companies can capitalize on this trend.

Advantages of non-financial companies in the digital era

In the digital era, non-financial companies, such as consumer platforms and Super Apps, have a distinct advantage. They not only enjoy digital touchpoints to cross-sell other services but also possess vast amounts of data, enabling them to personalize these services. This combination of digital capabilities and data-driven approaches enhances customer experience and service delivery.

The importance of cost-effective and scalable financial advisory services is significant

The companies that will capture the market, whether incumbents or non-financials, need to find ways to cost-effectively and scalably deliver advised financial and investment services. The key lies in striking a balance between personalized guidance from professionals and leveraging digital tools to streamline operations and reduce costs.

Consumer engagement with banking apps

A significant number of consumers actively engage with their banking apps on a weekly basis, with 58% reporting regular interactions. This heightened engagement presents an opportunity for financial institutions to leverage these digital touchpoints to offer additional products and services, thereby deepening customer relationships.

High trust in banks and non-bank platforms

Banks enjoy high levels of trust in their ability to deliver financial services beyond traditional banking. A surprising finding is that non-bank platforms, particularly Super Apps, enjoy similar levels of trust as banks. This trust gives non-bank platforms a competitive edge in capturing a share of the financial services market.

The advantage of Super Apps lies in their ability to enhance engagement and provide multiple touchpoints

Non-bank apps, particularly Super Apps and consumer platforms, have a significant lead in engagement compared to banking apps. This increased engagement translates into more touchpoints through which these platforms can recommend relevant financial products and services. With their trusted status and extensive user interactions, Super Apps have the potential to reshape the financial services landscape in Asia.

Willingness to use non-financial service providers for investment services

A substantial portion of individuals who haven’t used investment services in the last year expressed openness to using non-financial service providers. In fact, 96% of respondents indicated their willingness to explore such options. This presents a significant opportunity for non-financial companies to enter the investment services market and compete with traditional incumbents.

Preference for hybrid model in service delivery

When it comes to financial advisory services, a hybrid model that combines digital tools with assistance from a human advisor is highly favored. Forty percent of respondents indicated their preference for this approach, appreciating the convenience and personalization that digital tools offer, while still valuing the guidance and expertise of an advisor.

Untapped investable assets in Southeast Asia

A staggering estimate by Additiv suggests that Southeast Asia alone has over $1 trillion worth of investable assets that are not professionally managed. This untapped market presents immense opportunities for both incumbents and non-financial companies to cater to the investment needs of individuals in the region.

The rapid wealth creation in Asia has opened doors for financial institutions and non-financial companies to expand their reach and offerings. With the advantage of digital touchpoints and personalized service delivery, non-financial companies stand strong in this evolving landscape. However, traditional banks still enjoy high levels of trust, while Super Apps boast similar levels of credibility. To capture the growing financial services market in Asia, both incumbents and non-financial companies must adapt and innovate. Strategic partnerships, technological advancements, and a customer-centric approach will be pivotal in this race for market dominance. Ultimately, it is the companies that effectively deliver cost-effective and scalable advised financial and investment services that will thrive in the ever-evolving Asian market.

Explore more

Business Central Mobile Apps Transform Operations On-the-Go

In an era where business agility defines success, the ability to manage operations from any location has become a critical advantage for companies striving to stay ahead of the curve, and Microsoft Dynamics 365 Business Central mobile apps are at the forefront of this shift. These apps redefine how organizations handle essential tasks like finance, sales, and inventory management by

Transparency Key to Solving D365 Pricing Challenges

Understanding the Dynamics 365 Landscape Imagine a business world where operational efficiency hinges on a single, powerful tool, yet many enterprises struggle to harness its full potential due to unforeseen hurdles. Microsoft Dynamics 365 (D365), a leading enterprise resource planning (ERP) and customer relationship management (CRM) solution, stands as a cornerstone for medium to large organizations aiming to integrate and

Generative AI Transforms Finance with Automation and Strategy

This how-to guide aims to equip finance professionals, particularly chief financial officers (CFOs) and their teams, with actionable insights on leveraging generative AI to revolutionize their operations. By following the steps outlined, readers will learn how to automate routine tasks, enhance strategic decision-making, and position their organizations for competitive advantage in a rapidly evolving industry. The purpose of this guide

How Is Tech Revolutionizing Traditional Payroll Systems?

In an era where adaptability defines business success, the payroll landscape is experiencing a profound transformation driven by technological innovation, reshaping how companies manage compensation. For decades, businesses relied on rigid monthly or weekly pay cycles that often failed to align with the diverse needs of employees or the dynamic nature of modern enterprises. Today, however, a wave of cutting-edge

Why Is Employee Career Development a Business Imperative?

Setting the Stage for a Critical Business Priority Imagine a workplace where top talent consistently leaves for better opportunities, costing millions in turnover while productivity stagnates due to outdated skills. This scenario is not a distant possibility but a reality for many organizations that overlook employee career development. In an era of rapid technological change and fierce competition for skilled