Asian Banking & Finance (January to March 2026)

Ready to connect to ASEAN’s most extensive trade network?

Transform your business with the One Bank For ASEAN that can power your growth.

Connect with us at go.uob.com/th-onebankforasean

FROM THE EDITOR

J

PERMIT NO. MDDI (P) 036/07/2025

PUBLISHER & EDITOR-IN-CHIEF EDITORIAL MANAGER

Tessa Distor

PRINT PRODUCTION EDITOR

Vienna Verzo

LEAD JOURNALIST

Frances Gagua

JOURNALISTS

Ibnu Prabowo Jaleen Ramos Olivia Tirona Dylan Afuang Levi Buenviaje

GRAPHIC ARTIST

Simon Engracial

COMMERCIAL MEDIA TEAM

Jenelle Samantila Dana Cruz

ADVERTISING

Shairah Lambat shairah@charltonmediamail.com

AWARDS

Julie Anne Nuñez-Difuntorum awards@charltonmediamail.com

ADMINISTRATION

Eucel Balala accounts@charltonmediamail.com

EDITORIAL

apanese megabanks have different visions in mind on what the future use of artificial intelligence (AI) is like in their organisations.

MUFG tells us on page 14 that AI will become like employees, human and machine working together as colleagues; whilst SMBC is going all in on agentic AI, setting up a startup in Singapore to sidestep the lengthy internal processes and limits set on banks on page 20.

Tim Charlton

abf@charltonmedia.com

SINGAPORE Charlton Media Group 101 Cecil St. #17-09 Tong Eng Building Singapore 069533 +65 3158 1386 HONG KONG Room 1006, 10th Floor 299 QRC, 287-299 Queen's Road Central, Sheung Wan, Hong Kong +852 3972 7166 www.charltonmedia.com

Singapore bankers are calling for unified regulations and definitions in regards to tokenisation and emerging technologies. DBS Bank’s Rachel Chew tracked the bank’s digital assets efforts through the years but warned that regulatory uncertainties remain the largest barrier. Separately, UOB CEO Wee Ee Cheong called for financial players and regulators to align AI standards in his speaking session at the Singapore Fintech Festival 2025. Turn to pages 16 and 36 respectively for deeper insights.

We also spoke with TenPay Global CEO Yang Wenhui to learn why they opened up their mini programme ecosystem to welcome foreign e-wallets. Head over to page 18 to learn more.

Thailand is gearing up to welcome its first three digital-only banks in 2026, and the consortiums are likely to take advantage of their parent companies' convenience store and gas station ecosystems to scale. The bigger question is: did regulators play it safe by going for large, established conglomerates? Find out on page 46.

Read on and enjoy!

MIDDLE EAST FDRK4467, Compass Building, Al Shohada Road, AL Hamra Industrial Zone-FZ, Ras Al Khaimah, United Arab Emirates PUBLISHED BY Charlton Media Group Pte Ltd PRINTED BY Midas Asiapac Pte Ltd 10 Admiralty Street, #06-22 North Link Building, Singapore 757695 +65 6383 5290

Tim Charlton

Asian Banking & Finance is a proud media partner and host of the following events and expos:

Can we help?

Editorial Enquiries: If you have a story idea or press release, please email our news editor at abf@charltonmedia.com. To send a personal message to the editor, include the word “Tim” in the subject line.

Media Partnerships: Please email abf@charltonmedia.com with “partnership” in the subject line.

Subscriptions: Please email subscriptions@charltonmedia.com.

Asian Banking & Finance is published by Charlton Media Group. All editorial is copyright and may not be reproduced without consent.

Contributions are invited but copies of all work should be kept as Asian Banking & Finance can accept no responsibility for loss. We will however take the gains. *If you’re reading the small print you may be missing the big picture   



MICA (P) 249/07/2011 No. 67

ASIAN BANKING & FINANCE | Q1 2026 1

CONTENTS

12

CEO INTERVIEW

EVENT COVERAGE

OPENS WECHAT MINI 18 TENPAY APPS TO FOREIGN WALLETS

36 UOB CALLS FOR ALIGNED AI STANDARDS AND TRUST FIRST 06 Banks scrap cheques ahead of 2027 phaseout 07 HK banks face profit strain as property defaults rise 08 Banks ditch interest rate wars for deeper client engagement

INTERVIEW 14 MUFG rejects 'an all-powerful' AI for role-based bots 16 DBS warns regulatory limits on tokenised finance 20 SMBC startup slashes loan wait times to 5 days

ANALYSIS MARKET REPORT 32 HK banks face critical software talent gap through 2030

SECTOR REPORT 22 GFTN targets growth-stage fintechs with $200m fund 26 HSBC limits AI to advisory as human oversight remains vital

34 Foreign firms eye Japan as fintech rules firm 38 Fintech 'quantum leap' outpaces global policy 40 Finance leaders push tokenised money

CASE STUDY 42 CIMB card offers SMEs 114-day interest-free drawdowns 44 DANA targets 50m 'overlooked' teens with verified wallet

COMMENTARY 46 Thailand backs major conglomerates for digital banks but risks stifling innovation 48 The future of Asian banking isn't 'AI-ready' first – it’s ‘fearless-first’

10 Crédit Agricole CIB, Indosuez share HQ

Hong Kong: Room 1006, 10th Floor 299 QRC, 287-299 Queen's Singapore: Road Central, Sheung Wan, ASIAN BANKING & Building FINANCE Q1 2026 2019 2 St. ASIAN BANKING AND FINANCE|Hong | MARCH 101 Cecil #17-09 Tong Eng Kong Singapore 069533 +852 3972 7166

EVENT NEWS

24 SG retail crypto shut-out to last 2-3 years

BRANCH WATCH

Published Quarterly by Charlton Media Group Pte Ltd

BRANCH WATCH HANG SENG OPENS WEALTH CENTRE FOR HNWIS

MIDDLE EAST: FDRK4467, Compass Building, Al Shohada Road, AL Hamra Industrial ZoneFZ, Ras Al Khaimah, United Arab Emirates

For the latest banking news from Asia visit the website

www.asianbankingandfinance.net

ASIAN BANKING & FINANCE | Q1 2026 3

News from asianbankingandfinance.net Daily news from Asia

BANKING TECHNOLOGY

Paytm tests AI-powered POS device for merchant performance insights A point-of-sale device with a built-in AI model that allows merchants to ask how their business is performing— such as how much they made in a given week or month—is being tested

by Paytm, said Founder and Chief Executive Officer Vijay Shekhar Sharma.

Merchants in India tested the tool, often using it for real-time translation.

FINANCIAL TECHNOLOGY

WEALTH MANAGEMENT

Indosuez appoints Chua See Piu as head of North Asia Market Indosuez Wealth Management in Asia, the global wealth management brand of the Credit Agricole Group, has appointed Chua See Piu as head of North Asia Market. Chua brings over two decades of experience in private banking and investment advisory.

Chua was formerly managing director at BNP Paribas Wealth Management.

ECONOMY

CARDS & PAYMENT

The Philippines’ central bank calls for a 24/7 payment system The Bangko Sentral ng Pilipinas (BSP) is urging payment system stakeholders to help build a 24/7 payment system.

The call to action was raised during the 2025 Peso Real-Time Gross Settlement (RTGS) Forum held at its Head Office in Manila on 18 to 19 September 2025 and North Luzon Regional Office on 2 October 2025.

RETAIL BANKING

8 in 10 Southeast Asians to use fintech services in the next 12 months

Singapore pursues digital economy ties with ASEAN and global blocs

CBA’s digital home loan channel its fastest growing

Nearly seven in 10 (68.3%) of respondents in four Southeast Asian countries have used a financial technology service, according to a survey by UnaFinancial. Of 400 adult respondents from the Philippines, Singapore, Indonesia, and Vietnam, 80.3% say that they are likely to use fintech services within the next 12

Singapore's Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong said the city-state is exploring cooperation between the ASEAN region and major blocs such as the EU, Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and Gulf Cooperation Council.

Commonwealth Bank of Australia said its digital home loan channel is now its fastest growing application channel. Australians in their twenties are the fastest growing cohort for online home loan applications, whilst those in their thirties make up the largest share of digital applications, the bank said.

ASIAN BANKING BANKINGAND & FINANCE 2026 4 ASIAN FINANCE| Q1 | Q3 2021

ASIAN BANKING & FINANCE | Q1 2026 5

FIRST SINGAPORE SLAMS UNLICENSED 'FINFLUENCERS' FINANCIAL SERVICES

S

ingapore is stepping up oversight of financial influencers or 'finfluencers' and banks marketing financial products, signalling that online promotion without proper licensing can carry serious consequences.

The Monetary Authority of Singapore (MAS) issued guidance in September 2025 and sent advisory letters to individuals it said may have provided financial advice without a licence, signalling that digital content creators are now squarely within regulatory reach.

“Content creators who are unfamiliar with legal requirements may inadvertently be conducting a regulated activity without the appropriate licence, which may result in consumer harm,” the central bank told Asian Banking & Finance in an interview.

The issued guidance clarifies that even content framed as educational, or advice aimed at niche audiences, may fall under regulation if it promotes financial products or helps facilitate transactions.

MAS can also reach nonSingaporean content creators producing material for local audiences, ensuring awareness and compliance with the city-state’s financial laws.

Responsible digital marketing Financial institutions are also grappling with the same mounting pressures.

Banks should closely oversee partners, including influencers, using contracts and compliance checks.

Failing to do so could make them liable for misleading promotions or breaking regulations, MAS said.

Lawyers at Bird & Bird ATMD LLP said Singapore’s actions reflect the growing importance of responsible digital marketing in financial services.

“Financial institutions partnering with third parties—including influencers—must extend oversight, including contractual clauses for compliance and audit rights,” the law firm said on its website.

6 ASIAN BANKING & FINANCE | Q1 2026

High interest rates were the top deterrent for adopting credit

Banks scrap cheques ahead of 2027 phaseout CATEGORY

S

ingapore’s banks are reporting a steep decline in cheque use as the country moves towards ending physical cheque payments by 2027, with businesses and consumers shifting to digital alternatives.

Cheque transactions have fallen steadily in recent years, a trend that Maybank Singapore attributed to fees imposed on cheque usage and the growing reliance on real-time payment systems.

“This decline has been driven by both the introduction of fees for cheque usage, as well as the growing adoption of convenient e-payment solutions such as PayNow and FAST, which many of our customers now rely on for day-to-day transactions,” Helena Ooi, head of strategy at Maybank Singapore, said in an exclusive interview.

At United Overseas Bank Ltd., the number of both corporate and retail cheques processed dropped 30% from a year earlier.

“Payrolls and accounting were amongst the top three digitalised processes for business this year,” Kwan Chee Sun, managing director of group

Helena Ooi

Kwan Chee Sun

wholesale banking and global market technology and operations at UOB, told Asian Banking & Finance.

UOB’s Business Outlook Study 2025 found that about eight in 10 companies have adopted digital tools, whilst consumer surveys show increased use of mobile banking and QR payments. More than 75% of digital payment users relied on these options at least once a week.

For wholesale clients, transaction volumes through PayNow, FAST and GIRO rose 10% in the first half from a year earlier. Retail customer usage of digital payments climbed 25%.

The decline in cheque volumes comes as the government enforces a phased withdrawal. Banks must stop issuing corporate cheque books and halt bulk cheque and self-printing services by January 2026.

All Singapore dollar corporate cheque processing will end a year later. To fill the gap, the Association of Banks in Singapore (ABS) introduced two electronic deferred payment systems in July 2025.

Strong initial demand The platforms—Electronic Deferred Payment (EDP) and EDP+—are designed to replace post-dated cheques used for supplier and rental payments.

Under the EDP platform, funds are deducted from the payer’s account only when the payee requests settlement, whilst EDP+ locks the funds immediately, ensuring they can’t be used for other transactions. The tools were developed in consultation with the Monetary Authority of Singapore along with local banks.

“With the planned discontinuation of cheques, there is a need for digital solutions that offer similar functionality,” ABS said in a statement.

“Electronic Deferred Payment solutions were developed specifically to address this gap,” it added, noting that real-time notifications give users visibility that cheques could not provide.

UOB noted that there has been strong initial demand for the products from both retail and corporate customers.

Kwan said the systems could be used for a range of payments, including supplier transactions, deposits for project tenders, and property-related payments such as rental or ballot deposits.

FIRST

Grace Wu

Bank of East Asia is the largest independent-owned bank in HK

HK banks face profit strain as property defaults rise RETAIL BANKING

I

nterest rate cuts and real estate stress will continue to challenge Hong Kong’s banking sector in 2026, weighing on bank earnings and asset quality, Fitch Ratings said.

On the one hand, residential mortgage demand is expected to rise modestly as the housing market stabilises alongside lower borrowing costs, the ratings agency said in its 2026 outlook report. But overall loan growth will remain ‘mild’ as banks reduce exposure to riskier sectors such as commercial real estate (CRE).

CRE has become a years-long problem for the sector, prompting local lenders to clean up their

portfolios of riskier assets.

CMB Wing Lung is reportedly downsizing its mainland China property exposure through loan repayments and write-offs, Bank of East Asia (BEA), the largest independent-owned bank in Hong Kong, saw the impaired loan ratio for its Hong Kong CRE portfolio also climbed to about 7.5% from estimates of about 6% at end-2024.

BEA has significantly downgraded problematic Chinese developers in recent years, S&P said in its report.

Meanwhile, private lenders have reportedly stepped in to fill the gap in real estate lending as banks prioritise

Anticipated rate cuts will compress NIMs and profitability to a moderate extent

risk reduction and portfolio clean-up.

“Anticipated interest-rate cuts will compress [net interest margins] and profitability to a moderate extent, in addition to asset-quality challenges from prolonged stress in Hong Kong's CRE market,” wrote Fitch expert Grace Wu, head of Greater China banks, in the 2026 outlook report.

The narrow interest rate difference between Hong Kong and mainland China is also not expected to boost loan demand significantly due to US tariffs raising uncertainties and reducing capital expenditure (capex) plans, according to Fitch.

Fees and cross-border investments One bright area for Hong Kong’s banks are fees. Robust fee momentum, for example from wealth management fees from cross-border investment flows, can provide some upside earnings.

Wealth management has seen robust activity in the city.

Futu, a brokerage and wealth management company based in China, opened its largest store in Hong Kong and rolled out an institutional private wealth centre in Causeway Bay. Hang Seng Bank, one of the locally headquartered banks, and majority owned by HSBC, has been opening several new wealth management centres across the city just in 2025, including one in Kowloon and a planned centre in Tsim Sha Tsui.

THE CHARTIST: INDONESIA SEES BAD LOANS RISE DUE TO MORTGAGES AND VEHICLES

I

ndonesian banks’ bad loans have been creeping up since May 2023 on the back of mortgages and vehicle loans, according to CGS International (CGSI).

In contrast, working capital and investment loan non-performing loans (NPLs) have continued to trend down over the past two years, the investment house said in a December 2025 report.

“Within the consumer segment, we think the banks should be more cautious on the auto loans rather than mortgages and payroll given the concerns over a bigger car price drop compared to prior FY25,” CGSI wrote.

Major banks have showcased cautious and selectiveness in growing their consumer loan segment, CGS

International observed.

However, managements of these banks did indicate expectations of a potential pick-up should retail purchasing power improve in 2026, it added.

Credit risks for Indonesia’s big four banks have lessened, according to an earlier report by S&P Global Ratings.

“The banking sector's robust postpandemic recovery and the country's sound growth prospects have reduced credit risks for banks, in our view,” according to a press release by S&P published 9 December 2025.

However, even S&P noted pockets of stress in areas such as consumer loans and microfinance, which it said reflects a slower recovery in certain parts of Indonesia’s economy.

Banking system NPL

Source: CGS International

ASIAN BANKING & FINANCE | Q1 2026 7

FIRST

Citibank Singapore saw its digital wealth management transactions rise 165%

Banks ditch interest rate wars for deeper client engagement RETAIL BANKING

B

anks in Asia and Southeast Asia are focused on deepening customer relationships and improving experience, rather than just rates, as banks globally rethink deposit management.

Deposit rates amongst banks in Singapore and Malaysia have eased over the past few months, with less generous promotional rates, said Silvio Struebi, managing partner at Simon-Kucher for Hong Kong, China, and Singapore.

Banks in the region are instead moving from price to proposition, and to offering better value and better engagement, according to the managing partner.

“The key focus really in the market is around wealth, so with affluent or private banking segments of the retail banks, because there you can win higher tickets. And I would say almost every retail bank in the region has a dedicated strategy to win the customers,” he said in the consulting firm's podcast.

Banks in Asia have recently ramped up wealth management propositions.

Singapore’s United Overseas Bank (UOB) is reportedly aiming to increase the proportion of its invested wealth management-related assets to 50% going into 2026.

Citibank Singapore saw its digital wealth management transactions rise 165% in the last two years after revamping its mobile app and website and launching more than a hundred features to its wealth products, a bank executive told Asian Banking & Finance in an exclusive interview earlier in 2025.

Hong Kong’s Hang Seng Bank, meanwhile, opened new wealth management centres across the city throughout 2025. Singapore’s DBS Private Bank launched a bespoke private asset solution for its ultra-high net worth (UHNW) and family office clients.

Southeast Asian banks are both optimising pricing and ‘cleaning up’ deposits by tightening terms for early redemption or deposit breaks, for example, said Struebi.

“Then optimising the volume tiers is also an area that frequently comes up because the constructs may have been built years ago,” according to Struebi, adding that changes here usually enable “quick wins that we can realise relatively fast.”

In privilege banking and wealth management, Asian lenders usually have tiered offers or categories, he added.

“And also here, typically there is a suboptimal structure that we can address, how the pricing is set across these different segments,” Struebi continued.

What do treasurers need from banks today?

TRADE FINANCE

T

reasurers desire real-time dashboards and instant information access from their treasury service providers, according to a report published by HSBC. "For some firms, the end goal may be instant payments, whilst others chase more efficient cash pooling or predictive insights into interest rate changes, FX rate movements, funding opportunities and cash flow needs at different branches of stores or subsidiaries," HSBC said in the report, "Redefining Treasury Asia Pacific."

The majority want simplified, real-time dashboards for instant access to information that is critical to decision making, with as little manual data collection and processing as possible, the study continued.

Across markets in the Asia-Pacific region, the top hurdle named for real-time treasury was limited skilled resources to implement new technologies, according to 247 responses permitting multiple selections.

Only China and Indonesia had another top reason. For China, securing budget approval

8 ASIAN BANKING & FINANCE | Q1 2026

for system costs is the biggest challenge; in Indonesia, it's convincing stakeholders of the benefits of change, the report revealed.

More companies want to be able to manage their cash in real time in the face of a global trade war that could snarl financial planning, disrupt supply chains, and raise costs, HSBC had told Asian Banking & Finance in an interview earlier in 2025.

“The faster you can act in response, the more you can mitigate evolving external policy changes,” Patrick Zhu, managing director and regional head of corporate sales for the AsiaPacific region at HSBC Holdings Plc’s Global Payments Solutions, said at the time.

To meet real-time treasury needs and global cash visibility, banks are turning to tokenisation and automation.

Citi, for example, has launched several initiatives including the Citi Token Services, Real-Time Funding, and 7-Day Sweeps in a bid to help companies optimise their cash positioning and cut operational friction.

The majority want simplified, real-time dashboards for instant access to information

Since 1974 Upholding Aspirations Across Generations

Images for illustration purposes only.

ASIAN BANKING & FINANCE | Q1 2026 9

BRANCH WATCH

The companies occupy adjoining floors at IOI Central Boulevard towers

The space spans 43,000 sq ft

Digital features include Cisco Room Kits for conferencing

The activity-based layout replaces assigned seating with multi-purpose zones

Crédit Agricole CIB, Indosuez share HQ The 43,400-sqft facility features an internal staircase linking both specialised banking firms.

SINGAPORE

C

rédit Agricole Corporate and Investment Bank (Crédit Agricole CIB) and CA Indosuez (Switzerland) SA, Singapore Branch (Indosuez Wealth Management) have moved into a shared office to foster collaboration between the two firms.

The two companies now occupy adjoining floors at IOI Central Boulevard Towers, linked by an internal staircase.

The 43,400 square foot space features shared amenities in an open plan set-up with collaboration zones and technology-enabled meeting rooms.

The new office was selected to foster greater collaboration, flexibility, and sustainability, said Antoine Sirgi, senior country officer for Singapore at Crédit Agricole Group, in a press release announcing the inauguration of the office.

“Our new headquarters will enhance stronger collaboration across the Group, further augmenting our growth ambitions in Asia,” Laurent Proutière, chief executive officer of Indosuez Wealth Management for Asia, said during the inauguration of the office.

The activity-based layout replaces assigned seating with flexible, multi-purpose zones, which support

10 ASIAN BANKING & FINANCE | Q1 2026

Antoine Sirgi

Laurent Proutière

different workstyles and encourage spontaneous collaboration, Crédit Agricole CIB and Indosuez said in a joint statement shared with Asian Banking & Finance.

Crédit Agricole CIB and Indosuez are both part of the Crédit Agricole Group, the 10th largest banking group worldwide based on total assets, according to data from London-based publication The Banker.

Crédit Agricole CIB is the group’s corporate and investment banking arm, whilst Indosuez is the group’s dedicated wealth management arm.

Employees of both firms will enjoy height-adjustable workstations and spaces.

Digital features include wireless docking, smart lockers, and Cisco Room Kits for conferencing. Employees will also have access to the towers’ wellness amenities such as the sky park, jogging track and childcare facilities.

Beyond physical design, the relocation represents the two companies’ investment in their people and culture.

The investment in new premises demonstrates the firms’ confidence in Singapore’s role as a regional hub for wealth management, said Proutière. Crédit Agricole has operated in Singapore for 120 years.

ASIAN BANKING & FINANCE | Q1 2026 11

BRANCH WATCH

Hang Seng opens wealth centre for HNWIs The bank launched a dedicated Prestige Private Wealth Centre at its Kowloon Main Branch.

HONG KONG

H

ang Seng Bank rolled out revamps to its branches and launched new wealth centres in 2025, including the launch of a Prestige Private Wealth Centre at its Kowloon Main Branch.

The new wealth centre is located at the second floor and covers 3,400 square feet (sq ft) of space dedicated to high-net-worth customers of the bank.

About the centre The new Prestige Private Wealth Centre on the second floor of its Kowloon Main Branch spans approximately 3,400 square feet.

It offers personalised services for the bank’s high-net-worth customers with total assets of approximately $1.02m (HK$8m) or above.

Amenities include a coffee bar and meeting rooms for events.

This new centre is part of a

broader effort to enhance customer experience through innovative services and state-of-the-art facilities, the Hong Kong-based bank and HSBC subsidiary said in a press statement.

“By establishing our new Prestige Private Wealth Centre here and introducing the pioneering ‘We Come to You’ service in the banking hall, we are committed to meeting the evolving needs of our customers at every life stage and providing them with consistently warm services,” according to Rannie Lee, head of wealth and personal banking at Hang Seng.

Other branch moves Lee said that the bank will continue to expand and optimise its network to deliver a ‘Future Banking’ experience.

The Kowloon Main Branch

We are committed to meeting the evolving needs of our customers at every life stage

Rannie Lee

originally opened in 1971 at 618 Nathan Road. It is Hang Seng’s largest branch in Kowloon, spanning approximately 30,000 square feet. It houses a dedicated mortgage centre and extensive safe deposit box facilities.

Separately, Hang Seng Bank is opening a wealth management centre at Harbour City in Tsim Sha Tsui. The branch offers tailored wealth management and advisory solutions for their prestige banking customers.

Hang Seng Bank also relocated its Taikoo Shing and San Po Kong branches. The Taikoo Shing branch, first opened in 1979, has relocated to Level 6 of Cityplaza 1. The San Po Kong branch, established in 1971, is now located at the commercial building PORT 33 and now features foreign currency ATMs and smart tellers.

The Prestige Private Wealth Centre is located at the second floor of the bank's Kowloon Main Branch

The wealth centre spans 3,400 sq ft

It serves customers with total assets of approximately $1.02m or above

Amenities include a coffee bar and meeting rooms

12 ASIAN BANKING & FINANCE | Q1 2026

No friend in sight just when you need them the most?

SBF answers where BFFs vanish.

www.sbfinance.com.ph

ASIAN BANKING & FINANCE | Q1 2026 13

INTERVIEW

MUFG rejects 'all-powerful' AI for role-based bots The bank is deploying specialised AI personalities rather than a single master system.

APAC

M

UFG Bank, Ltd. is preparing a workplace where humans and artificial intelligence (AI) work side by side, with each AI designed for a specific role.

“Our CEO says we should make the workplace as friendly as possible for our AI colleagues,” Osamu Abe, executive officer and chief of staff for Asia-Pacific at the Japanese lender, told Asian Banking & Finance.

Abe does not want one all-powerful AI. “I want diversity— different personalities, different risk levels. I don’t want compliance and credit office AIs to act like our sales and trading AIs,” he said in an exclusive interview.

Humans will remain in control. “In decision-making, humans are always in the loop,” Abe said.

“At this moment, we’re deploying AI with human intervention—basically, delivering the groundwork that we would have prepared manually otherwise.”

He noted that banks need strict rules, especially for security and compliance, and they are bringing their traditional security approach into the project.

Abe said AI could save time by improving work quality and strengthening security. Routine tasks such as emails, transcripts, PowerPoints, client proposals, and forming new business contacts are all faster with AI support.

AI also helps with regulatory work, including know your customer checks and identity verification, ensuring accuracy for compliance. It helps link MUFG’s global operations, connecting clients in Asia, Europe, and the US. These operations run through an India-based “global efficiency” centre. The next step, he said, is to automate the full process. That would involve making sure the AI is working correctly on the decision-making level.

Abe cited the need to carefully handle third-party data.

“Regulators are interested in what we do with this data when we work with outside parties,” he said, adding that banks should be allowed to use advanced services.

Regulation that strikes the balance between traditional governance and rules whilst allowing financial institutions to enjoy the benefits of up-and-coming new services will be most important, Abe told the magazine.

“Eventually, we will probably find a common ground in terms of what these governance norms should look like.”

Partnerships MUFG also supports startups and partner banks in Asia, connecting them with clients and investors. Abe said the bank is investing in AI and fintech to prepare for market changes.

“We are looking into the future of finance, going right into fintech rather than traditional retail finance,” he told Asian Banking & Finance, adding that they want to be ready when new services take over the market.

The bank studies other markets for ideas. “Thailand, in some ways, is more advanced in offering retail mobile phone applications than in Japan,” he said. “There are things we could learn from these different markets.”

India is another focus. MUFG has invested in consumer finance startups, including a 20% stake in DMI Finance, which serves people new to credit. “Half of their clients…

14 ASIAN BANKING & FINANCE | Q1 2026

Osamu Abe, executive officer and chief of staff for Asia-Pacific at MUFG

I don't want compliance and credit office AIs to act like our sales and trading AIs

never had credit cards or any credit history. So buying phones through our partner's startup was their first step into consumer credit availability,” Abe said.

Other investments include buy-now-pay-later platform Akulaku, Inc., HC Consumer Finance Philippines, Inc., and lending company PT Adira Dinamika Multi Finance.

More recently, MUFG invested a total of $4.3b in Shriram Finance, the second-largest non-banking financial company in India in terms of loan balance. It has also become the largest investor in Sakana AI, a Japanese AI research and development (R&D) company.

The Japanese megabank also set up a structured trade solutions subsidiary in Singapore. Established in endDecember 2025, MUFG Trading (Singapore) Pte. Ltd. will extend structured trade solutions through the purchase and sale of products, the bank said.

MUFG also made upgrades to its security. It now uses a data anonymisation solution from privacy technology firm Private AI for its big data platform, OCEAN. The technology automatically detects and anonymises personally identifiable and confidential information in unstructured data.

The bank plans to extend the use of this technology to its call centre operations, as well as in fraud detection, risk management, and internal knowledge sharing.

ASIAN BANKING & FINANCE | Q1 2026 15

INTERVIEW

DBS warns regulatory limits on tokenised finance Rachel Chew says unsettled definitions of digital money remain key obstacles.

SINGAPORE

D

BS Group Holdings Ltd., Southeast Asia’s biggest lender by assets, sees a tokenised financial world as inevitable but warns that fragmented regulations and unsettled definitions of digital money remain key obstacles.

Client demand for digital assets has evolved over the past decade, moving from niche crypto adopters to mainstream institutions, said Rachel Chew, group chief operating officer and head of digital currencies, Global Transaction Services, DBS Bank.

“As more regulations come into play, traditional businesses, large institutions, high-net-worth clients—they are all keen to look at this as part of their portfolio,” she told Asian Banking & Finance in an exclusive interview.

Tokenisation, which splits assets into smaller parts on a blockchain, lets money move around 24/7, unlike traditional finance that stops on weekends and holidays, Chew said.

DBS began exploring the digital asset space in 2016 under the Monetary Authority of Singapore’s (MAS) Project Ubin, a study on using blockchain for payments and securities.

The bank has since joined initiatives including Project Bloom, which tests tokenised commercial bank money and stablecoins. DBS launched its digital exchange in 2020, offering institutional and accredited investors a platform for cryptocurrency trading, along with post-trade services.

It handles digital assets by issuing and listing tokens, trading and safeguarding them, managing payments and settlements, and supporting the wider ecosystem, Chew said.

Regulatory uncertainty Digital asset players still need a bank account to operate, she told the magazine, noting that DBS could act as a reserve bank for stablecoin issuers.

Chew cited regulatory uncertainty as the largest barrier. “We have yet to come to a standardised way to define digital assets,” she said. The rules differ across jurisdictions, with most guidance focused on reserves, token redemption periods, and financial classifications rather than cross-border interoperability.

Tokenisation standards for instruments—including stablecoins and central bank digital currencies—remain unclear. DBS participated in an industry working group in Hong Kong that issued initial guidance on token standards in October 2025.

“That’s one step forward, but we need standards on the instruments,” Chew said.

Banks without the right technology or expertise may struggle to participate, whilst private digital money risks eroding public trust in what constitutes money.

“People believe that they are the same as what we understand to be money today. It’s quite different,” she said, citing the difference between central bank digital currencies, tokenised deposits, and private stablecoins.

DBS is amongst 37 banks participating in the Swift Digital Ledger, a blockchain initiative running alongside the traditional fiat correspondent network.

The bank is part of the core design group of 10 banks

16 ASIAN BANKING & FINANCE | Q1 2026

There needs to be more work amongst the participants to drive standards faster

shaping the ledger’s architecture.

The lender is also exploring the development of bilateral token interoperability with JPMorgan Chase & Co. This would potentially allow customers of either bank to swap deposit tokens for the other bank’s coins or convert them to fiat accounts.

“It will get harder before it gets better,” Chew said of standardising digital assets. “Until we get there, there will be significant fragmentation.”

Despite hurdles, Chew said tokenisation offers tangible advantages for both banks and clients. Fractionalisation broadens investment access, real-time settlement improves liquidity, and the underlying infrastructure of distributed ledgers could improve efficiency and transparency.

The digital exchange and related services also position the Singaporean bank to capture the growing institutional interest in digital assets, which now extends beyond crypto-native firms to ultra-rich clients and corporates seeking diversified portfolios.

Individual institutions are ready to get their hands dirty and try out the new technology, Chew said.

She added that broader adoption depends on collaboration amongst regulators, banks, and market participants to accelerate standardisation.

“There needs to be more work amongst the participants to drive standards faster,” Chew said. “That’s one hurdle before it gets better from the fragmentation.”

Rachel Chew, group chief operation officer and head of digital currencies, Global Transaction Services at DBS Bank

We’re your

payments people Embedded payments designed to grow your software platform We help software companies become the everything platform for their customers, by delivering powerful and seamless payment experiences.

Whether it’s card, bank, in-person or digital payments, every transaction feels effortless.

Make payments your platform’s superpower with the trusted partner behind some of the world’s fastest-growing SaaS companies.

4bn 600k

transactions handled annually

merchants rely on our technology

1k

software partners

$400bn processing volume per year

Let’s talk. platforms.worldpay.com/en

ASIAN BANKING & FINANCE | Q1 2026 17

CEO INTERVIEW

TenPay opens WeChat mini apps to foreign wallets

Visitors from other countries may now use their homegrown wallets inside Mainland China.

CHINA

T

enPay Global Pte. Ltd. is widening access to its vast mini programme ecosystem by allowing overseas e-wallets to be used in China — a shift that marks its most ambitious push yet to make global payments smoother and less fragmented.

The move by Tencent’s cross-border payment arm represents a major expansion of a system that once served mainly outbound Chinese travellers.

The company began by letting Chinese consumers scan and pay abroad through WeChat Pay. It is now working in reverse: enabling visitors from other countries to use their homegrown wallets inside Mainland China.

“We started by supporting Chinese travelers to make QR payments in overseas markets,” Yang Wenhui, CEO at TenPay Global and general manager at Tencent Financial Technology, told Asian Banking & Finance on the sidelines of the Singapore Fintech Festival on 13 November 2025.

“Today, we are bringing overseas mobile payment tools for use in China," he continued.

WeChat Pay is accepted in 74 countries and regions and over seven million merchants.

Yang said foreign visitors entering China surged in 2023 as borders reopened after the coronavirus pandemic.

That sentiment helped shape the company’s shift to an inbound-first strategy. “We decided to open up the Tencent ecosystem to welcome international travellers,” he said.

Interoperability as the key Launched in November 2025, TenPay Global Checkout allows merchants operating inside WeChat mini programmes to accept payments from overseas e-wallets and international cards.

Mini programmes are bite-sized apps built inside WeChat that let users shop, play games, book medical appointments, collect rewards, and complete other tasks without leaving the platform. The service went live first in Singapore and Macau and will extend to other markets including Australia, Japan, as well as New Zealand.

Yang said the expansion rests on a simple question: how to make payments easier for non-Chinese users navigating China’s tightly integrated digital ecosystem.

“After a few years, we realized this is good, but we can make it better,” he told the magazine.

He cited interoperability as the key. “We feel that the integration of different payment ideas and systems will happen. Eventually, it’s going to be a less fragmented system.”

TenPay Global describes its cross-border model as “1+1+1”: Tencent’s payment infrastructure combined with financial partners and overseas lifestyle platforms.

The approach aligns with Beijing’s national push for stronger cross-border payment linkages. TenPay Global is 18 ASIAN BANKING & FINANCE | Q1 2026

Yang Wenhui, CEO at TenPay Global

Let's enable the domestic payment infrastructure to welcome international payment tools as much as possible

one of the designated foreign-institution partners of China’s Cross-Border Interconnection Payment Gateway.

Yang said no single company could create a fully interoperable global payment system.

“It has to be an industry movement. The public and private sectors need to play their role,” he added.

International partners “overwhelmingly” expressed interest once access opened.

Since the gateway initiative launched in September 2025, more than 40 partners across 10 countries and regions have joined TenPay Global’s network, Yang said.

Participants include DBS PayLah! and GrabPay in Singapore, Maya in the Philippines, PayPal and Venmo in the US, and Kasikornbank in Thailand.

Yang said the company aims to build at least one reliable corridor for interconnected payments. “We are quite committed to bringing other mobile payment tools back to the country,” he told the magazine.

He called on the broader financial sector to collaborate.

“Let’s enable the domestic payment infrastructure to welcome international payment tools as much as possible, and as convenient as possible,” he said.

Yang expects rapid advances in digital payments.

“There will be fresh technologies and trials across different parts of the ecosystem,” he said.

“Digital penetration will rise in almost every market, and payments will become even faster.”

ASIAN BANKING & FINANCE | Q1 2026 19

INTERVIEW

SMBC startup slashes loan wait times to 5 days Account opening may also drop to two days.

SINGAPORE

S

umitomo Mitsui Banking Corp. (SMBC) has established an agentic artificial intelligence (AI) startup in Singapore to speed up development of enterprise AI tools and attract talent that traditional banking structures often struggle to secure.

The venture, first announced in June 2025, is structured to operate with greater independence so it can experiment more quickly, test automation solutions in controlled settings, and sidestep the lengthy internal processes that usually accompany innovation inside big financial institutions.

“We are trying to bring the best of both worlds: having an independent entity incubated and invested by SMBC to attract talent, do experiments faster, and have the nimbleness and agility,” Mayoran Rajendra, managing director and head of the AI transformation office at SMBC, told Asian Banking & Finance.

Unlike generative AI that produces content from prompts, agentic AI can make decisions, take action, and work through multi-step objectives with limited supervision. It can pursue complex goals autonomously whilst minimising the risks common to broad, openended language models.

Rajendra said this approach helps the bank reduce uncertainty and variability in processes by narrowing workloads into smaller, defined steps.

“You are not overly relying on a large language model (LLM), but the small, small judgements that are needed in a repetitive workflow,” he said in an exclusive interview.

Streamlining with agentic AI SMBC is focusing initial development on onboarding of corporate clients and know-your-customer (KYC) reviews.

These areas involve heavy documentation and significant labour hours, especially for multinational clients using several SMBC services, including loans, trade finance, remittances, and foreign exchange.

In many cases, compliance teams must sift through 400 to 500 pages of documents for a single corporate customer to obtain the required data points for each jurisdiction.

Rajendra said agentic AI could take over much of this work by extracting information, checking accuracy, and validating data with multiple authorised sources.

With automation, corporate account opening may drop to two days from five, he said.

Loan processing, which can take as long as about seven months depending on the borrower and country-specific regulatory requirements, could fall to five days.

Rajendra said automation would not remove human oversight. SMBC designs its agentic workflows so staff can always view the exact text or source page from which a data point was extracted.

20 ASIAN BANKING & FINANCE | Q1 2026

You are not overly relying on a large language model, but the small, small judgements that are needed in a repetitive workflow

“You automate a lot of the repetitive work, but we always design it in a way that is auditable, traceable, observable,” he said. “There is always a possibility that it cannot be 100% [accurate]," he added.

Other investments To address data-security concerns, SMBC keeps all information processed by AI strictly within its own infrastructure. Sensitive data is not fed into external models, nor is it used to train open LLMs. “First and foremost, we make sure any information is not going to an LLM to train the LLM. It sits within SMBC premises,” Rajendra told the magazine.

Beyond AI development, SMBC is rolling out other tools for corporate clients, including free CFO (chief financial officer) dashboards that provide real-time visibility into operations through analytics and data visualisation. The bank also invests in startups across India and Southeast Asia through the SMBC Asia Rising Fund.

Rajendra said the goal is straightforward: “We are bringing these agentic AI applications or capabilities to support our customers’ operation automation.”

During the Singapore Fintech Festival 2025, SMBC’s Akio Isowa said that reimagining core banking requires rethinking the design of the organisation itself.

“The goal is simple, leverage AI to turn legacy data into better business outcomes,” said Isowa, who is a senior managing executive officer in the bank.

Mayoran Rajendra, managing director and head of AI transformation at SMBC

Banking solutions that grow with your business locally and across borders From industry focused support to Johor-Singapore Special Economic Zone (JS-SEZ) opportunities, HL Bank helps businesses move faster with practical products, expert advice and regional reach.

Corporate Client Initiative of the Year - Singapore HL Bank

Growth Strategy of the Year - Singapore Bank CORPORATEHLINVESTMENT

&

BANKING AWARDS 2025

CORPORATE & INVESTMENT

BANKING AWARDS 2025 ASIAN BANKING & FINANCE | Q1 2026 21

SECTOR REPORT: FINANCIAL TECHNOLOGY

GFTN targets growth-stage fintechs with $200m fund The focus will be on firms that have shown commercial traction and scale.

The fund is expected to deploy capital over three years after its first close

APAC

G

lobal Finance & Technology Network Limited (GFTN) plans to deploy a $200m capital fund to back fintech firms that have outgrown early-stage funding but are not yet ready for public markets, targeting what it sees as a persistent gap in growth financing.

The fund will focus on companies seeking capital to expand into new markets or broaden their product offerings, Neil Parekh, deputy chairman at GFTN, a nonprofit established by the Monetary Authority of Singapore in 2024, told Asian Banking & Finance.

“We see an opportunity especially at the growth capital stage, where there’s a dearth of capital,” he said in an exclusive interview.

The fund is expected to deploy capital over three years after its first close, which Parekh said is targeted for the first half of the year.

The nonprofit organisation will invest in growth-stage fintech companies globally, with a focus on 22 ASIAN BANKING & FINANCE | Q1 2026

firms that have shown commercial traction and operational scale.

According to Parekh, capital availability has become uneven across the fintech funding cycle.

Early-stage startups continue to attract backing from family offices and high-net-worth people, whilst late-stage fintechs and companies preparing for initial public offerings still see strong investor interest.

James Boey

Neil Parekh

Struggling to find capital Where GFTN sees the biggest challenge is in the middle, he said.

These companies have already raised multiple rounds, but they struggle to find capital to support their next phase of growth, he added.

Many of the firms approaching GFTN have been operating for six to eight years and are looking to enter more markets or expand into adjacent business lines, such as payment firms moving into smalland medium-enterprise financing.

Parekh said a growing number

have expressed interest in the fund without any formal marketing effort.

“They’ve evidenced the value they add to the fintech ecosystem,” he said.

The fund was launched in partnership with Japan’s SBI Holdings and SBI Ven Capital Pte. Ltd. GFTN spoke with more than 20 potential partners before selecting SBI, citing its experience managing close to $60b in financial service investments.

“They want to work with a partner like us that can help companies enter new jurisdictions and markets,” Parekh told the magazine.

Heightened interest Interest from potential portfolio companies increased after the fund was announced at the Singapore Fintech Festival, he added. As of December 2025, GFTN was processing documentation to complete the fund’s formal setup.

The launch comes as fintech investment in Southeast Asia remains under pressure. Funding for the sector fell 21% year on year in 2025, according to Traxcn Technologies Ltd., underscoring the challenges faced by companies seeking expansion capital amidst tighter market conditions.

Parekh said the long-term goal is to establish more funds, but that depends on performance.

“If you take money from outside investors, whether they’re institutions or family offices or insurance companies, you have a fiduciary responsibility to generate returns,” he said. “No one will be willing to give us money unless we generate returns on fund No. 1,” he continued.

He added that the fund would remain flexible as market conditions shift. “We have to stay nimble… and adapt as we go along.”

In an earlier interview, GFTN co-CEO James Boey said that they are shifting the focus of their events from scale to impact.

“It's not about scale. It's not about size anymore,” Boey told Asian Banking & Finance at the Singapore Fintech Festival 2025.

“We are an ecosystem builder.

We work towards creating social impact and global impact to the underserved, to the unbanked, especially to the youth, who who need support, who need literacy,” the co-CEO continued.

ASIAN BANKING & FINANCE | Q1 2026 23

ANALYSIS: DIGITAL ASSETS

SG retail crypto shut-out to last 2-3 years The central bank is unlikely to loosen restrictions on retail digital asset access before 2028. rules. Existing laws on consumer protection, anti-money laundering, and terrorism financing helped Wang advise clients before specific digital asset rules existed.

Tokenisation and quantum computing may prompt regulatory updates. “Tokenisation is something we definitely need to look into,” Wang said. “And I’m very sure the regulators are looking into it as well.”

Singapore requires 90% of assets to be in cold wallets

S

ingapore is making steady progress in digital assets and tokenisation, but retail customers are unlikely to see major access anytime soon.

Regulators remain cautious about opening the space, even as adoption grows in payments and institutional investment, analysts said.

“There is definitely a hesitance on the part of the regulator to introduce digital assets to retail customers,” Yingyu Wang, a partner at Simmons & Simmons JWS Pte. Ltd., told Asian Banking & Finance.

The partner added that the retail segment has “deliberately been slowed down” and does not expect the Monetary Authority of Singapore (MAS) to change its stance in the next two to three years.

Still, the digital asset space in Singapore is gaining momentum.

Wang expects tokenised payment products such as stablecoins and tokenised money market funds to increase adoption and blend traditional finance with cryptobacked offerings.

24 ASIAN BANKING & FINANCE | Q1 2026

If you want to be in this space and you don't want to be regulated, you can't go far

Yingyu Wang

“That would be the next phase, if you ask me: looking at digital assets for the usage of payments,” she said in an interview, citing opportunities in instant transfers that could cut costs for service providers.

“In the payment space, the profit margin is very low for the service providers,” Wang said.

“A lot of them make money from, say, foreign exchange. So from a payment service provider perspective, I do think at least some of my clients… want to be able to achieve instantaneous transfers.”

Interest in digital assets surged after the United States passed a law setting up a framework for payment stablecoins. Locally, Singapore had an early lead: the Monetary Authority of Singapore began consulting the market on digital payments in 2017, laying the groundwork for the Payments Services Act. By 2019, regulations had focused on activities rather than specific products, allowing flexibility for emerging technologies.

MAS uses broad, tech-neutral

Mature framework Compared with Hong Kong, the city-state has a more mature digital asset framework, though Hong Kong imposes stricter storage rules for crypto, requiring 98% of assets in cold wallets versus Singapore’s 90%.

Wang said Singapore regulates a broader range of digital assets, whilst Hong Kong focuses on virtual asset exchanges.

The approaches to central bank digital currencies and decentralised finance will also shape each market.

Wang noted that regulators should decide how private tokens will interact with these currencies. “Am I willing to give up certain controls over that?” she asked.

Wang is skeptical about unregulated decentralised finance adoption. “If you want to be in this space and you don’t want to be regulated, you can’t go far.

The reality is that you can’t get institutional support.”

Many clients, she added, have chosen to operate within regulatory frameworks. “Regulation is the way to go. In fact, a lot of my clients have now decided to be regulated.”

Singapore has Project Guardian, an industry-wide initiative that explores the use of asset tokenisation to enhance the liquidity and efficiency of financial markets.

During Singapore Fintech Festival 2025, Ho Hern Shin, MAS’ deputy managing director of financial supervision, stressed that partnerships between the public and private sectors are critical to building a digital asset ecosystem that is both safe and interoperable.

Trusted Partner for Multigeneration Resilient in driving continuous expansion Global Expertise Asian Perspective

Expert Discussion Strategic Connection

Asia-wide Network All-round Privileges

Live

Purposefully

With World’s Best, Asia’s Safest*

go.dbs.com/privateclientid

*World’s Best Bank 2025, 2021, 2019, Euromoney | Safest Bank in Asia 2009 - 2024, Global Finance PT Bank DBS Indonesia is licensed and supervised by the Indonesian Financial Services Authority (OJK) & Bank Indonesia (BI), and also a participant of Indonesia Deposit Insurance Corporation (LPS) guarantee program.

ASIAN BANKING & FINANCE | Q1 2026 25

SECTOR REPORT: BANKING TECHNOLOGY Hazir noted that human judgement has become even more important as AI systems grow more capable.

“AI needs to be ethical, responsible, safeguarded, and governed,” he said.

“This is very, very important, because it is prone to hallucinations. It is prone to reasoning and creating outcomes that make you happy.”

Hazir said the point is not to discourage the use of agentic models or advanced AI tools but to ensure they are deployed with strong oversight.

“We need to make sure there’s a human in the loop right now, and we need to make sure that we’re creating these models with the governance and protections that need to be created."

Over 80% of business-to-consumer payments in Singapore are now made digitally

HSBC limits AI to advisory as human oversight remains vital

Winne Yap warns that AI is "prone to hallucinations" as tech advances.

APAC

H

SBC Holdings Plc’s approach to technology stays the same: it uses innovation only when it solves real problems for clients, even as the artificial intelligence (AI) landscape shifts at breakneck speed.

Senior executives of the bank told Asian Banking & Finance that fastadvancing tech, especially the rise of more autonomous agentic AI, make human and regulatory oversight more vital than ever.

“You can have all the technology, but it needs to solve a problem for the customers,” Winnie Yap, head of Global Payment Solutions at HSBC Singapore, said on the sidelines of the Singapore Fintech Festival 2025.

According to Yap, serving customers today means looking beyond HSBC’s direct clients to the people those clients serve.

A company dealing with consumers may need to handle a mix of payment methods—cards, e-wallets, and Singapore’s PayNow, and managing that patchwork could be overwhelming for businesses, Yap told Asian Banking & Finance.

26 ASIAN BANKING & FINANCE | Q1 2026

It is prone to reasoning and creating outcomes that make you happy

Winnie Yap

Shayan Hazir

The bank’s task is to offer a simplified, unified solution that its clients could in turn offer to their own customers, and tech alone can’t carry that responsibility, she said.

“You can have all the technology there, but the clients still very much value the thought leadership and advice you bring to the table to help them in that journey,” Yap said.

Shayan Hazir, chief digital officer for Asia (excluding Hong Kong) and the Middle East, North Africa, and Türkiye at HSBC, said banking innovation is not a matter of releasing as many tools as possible; strong governance and regulator guardrails are needed to ensure that AI-driven systems remain safe, reliable, and aligned with human values.

“We have to create human guardrails so that we can retain what is our creativity, our compassion, our ability to collaborate and have a conscience,” he said.

“Those are things that are not easily going to be translated to AI and to bots and to agentic, and we must design them that way.”

Strategic decision-makers On the payment side, HSBC sees rising demand for real-time information and data. Treasurers, in particular, now play a key role in corporate strategy.

Tariffs announced by the US and China have affected trade flows, pushing treasurers to make quicker, more informed decisions.

“Treasurers today are no longer the treasurers of the past. They are strategic decision-makers because information is power—data is power,” Yap told the magazine.

HSBC’s guiding question remains: “With the technology available, what can banks provide to give them more instant information?” she asked.

The solution can be as straightforward as offering an application programming interface (API). APIs have supported HSBC’s work on tokenised deposits, whilst blockchain underpins the bank’s real-time transfers.

Digital commerce is another major shift affecting the bank’s customers.

More than 80% of business-toconsumer payments in Singapore are now made digitally, according to an a study published by HSBC. According to Yap, the bank is ready to help clients across all stages of digital maturity.

She said some clients are far ahead, working with banks on things like tokenised deposits and other digital innovations. Others are more traditional and are still trying to catch up with recent technology.

FINTECH AWARDS 2025

TAIWAN DOMESTIC CASH MANAGEMENT BANK OF THE YEAR TAIWAN DOMESTIC TRADE FINANCE BANK OF THE YEAR

Building Cross-Border Resilience and Corporate Competitiveness with Cathay United Bank In this co-published article, CUB highlighted its global transaction services delivering a holistic cross-border financial framework that unifies payment solutions, digital connectivity, and working capital financing.

Under EVP Francis Peng’s leadership, CUB’s GTS team leverages tech to deliver integrated solutions that help businesses manage supply chain challenges and boost competitiveness

A

s a leading financial advisor in Asia, Cathay United Bank (CUB) has been integrating innovative technologies to enhance its offerings. Leveraging its Global Transaction Services (GTS), CUB connects global resources, empowering clients to navigate supply chain disruptions and elevate their cross-border competitiveness.

Global supply chain shifts have significantly increased the demand for cross-border fund transfers. As operations have become increasingly decentralised, companies face fragmented, inefficient local financial services. This fuels a need to centralise resources and optimise funds. Concurrently, the rise in transaction frequency and currency types has introduced challenges, such as payment risks and more stringent compliance requirements across various jurisdictions. To navigate this complex landscape, companies are seeking financial solutions that are transparent, secure, and integrated and can connect with internal systems.

To meet such clients’ demands, CUB boasts GTS solutions that go beyond traditional deposits and remittances. The GTS solutions can support every facet of daily corporate operations—from procurement and production to sales—by offering a holistic cash flow and risk management solution. The solutions encompass three core features: digital transaction platform and payment solutions, cash management services, and trade and working capital financing. This service offering also positions the bank as a strategic partner that can help companies sustain operational efficiency and enhance global competitiveness.

28 ASIAN BANKINGAND & FINANCE 2026 ASIAN BANKING FINANCE| Q1 | DECEMBER 2019

Cathay United Bank won eight Asian Banking & Finance awards in July 2025, highlighting its customer-first approach to secure and convenient financial services

Delivering a one-stop GTS solution CUB’s Global MyB2B offers a single-entry point for cross-border financial services, integrating domestic and overseas accounts with multi-currency collection and payment.

This platform, supporting multiple devices and languages, features a single interface that allows clients to instantly monitor global cash flows, freeing them from the hassle of switching between accounts opened in different countries and regions.

CUB boasts GTS solutions that go beyond traditional deposits and remittances In terms of diverse cross-border payment solutions, CUB provides various cross-border payment solutions, such as Cathay Express Wire and Cathay Global Pay. Paired with the SWIFT GPI service, these solutions enhance the transparency and security of cross-border payments while reducing remittance costs and minimising risks associated with foreign exchange volatility.

CUB also offers clients the flexibility to link their ERP or treasury management systems through API, seamlessly integrating financial services with daily corporate operations.

With its flexible financing solutions, CUB boasts a diverse loan product portfolio.

Success in Asia recognised by Awards CUB has established a significant international footprint, spanning over 67 locations across 11 Asian regions to date.

CUB operates branches and representative offices in nine countries, including Singapore, Vietnam, and Malaysia. This extensive overseas presence gives the bank a competitive edge to offer localised services and integrated cross-border solutions to meet clients’ specific needs, such as fund allocation, investment, and hedging. CUB continues to develop a range of diverse services and loan offerings, including syndicated loans and bilateral loans.

Leveraging robust services and advanced technological capabilities, CUB offers a full spectrum of corporate financial solutions designed to help clients maximise funding flexibility and operational efficiency. The bank’s outstanding performance in crossborder financial services has earned it numerous international recognitions.

In 2025, CUB was honoured with the titles of Taiwan Domestic Cash Management Bank of the Year and Taiwan Domestic Trade Finance Bank of the Year at the Asian Banking & Finance Awards.

Advancing technological innovation Recognising that standalone financial products are merely one piece of the puzzle, CUB strives to leverage its technological expertise to craft customised solutions and the “One-Stop GTS Solution”, cementing sustainable partnerships with clients. Guided by the vision to become clients’ most reliable partner for global expansion, CUB will take painstaking efforts to optimise cross-border transactions for efficiency and security, thereby delivering a seamless, easy-to-use financial experience to global clients.

ASIAN BANKING & FINANCE 2026 29 ASIAN BANKING ASIAN BANKING AND FINANCE AND FINANCE | DECEMBER || Q1 Q3 2021 2020

SECURITIES HOUSE OF THE YEAR - MALAYSIA EQUITY DEAL OF THE YEAR - SINGAPORE SECURITIES HOUSE OF THE YEAR - SINGAPORE SECURITIES HOUSE OF THE YEAR - INDONESIA

Redefining asset management for a dynamic world Driving growth for institutional and high-net-worth clients across and beyond ASEAN.

U

.S.’s long-held “safe haven” reputation is eroding. Meanwhile, investors are seeking stability in alternative markets, fuelling a surge in cross-border capital flows and ushering Asia’s asset management industry into a transformative era.

Closer to home, attention is turning to the ongoing shift of supply chains into ASEAN and the broader China–ASEAN corridor.

Businesses are accelerating their expansion plans across the region, with the region eager to seize the opportunities.

Today, investors face a more complex reality, one that demands more bottom-up work, a keen grasp of domestic politics and an understanding of global dynamics.

Without a keen understanding of local and regional market developments and dynamics, it is almost impossible to make gains, much less generate alpha.

As Asia’s Global Investment House, CGS International Securities (CGS International) is proud to guide clients through the fog, enabling access to undiscovered investment opportunities and delivering solutions that anticipate tomorrow’s challenges.

Catalyst for ASEAN ASEAN represents the fifth largest economy globally, and its population of over 670 million and projected 4% real GDP growth outpace global averages. It is a magnet for investors seeking diversification and resilience, offering a spectrum of opportunities.

CGS International’s on-the-ground presence and deep regional expertise allow it to identify and capitalise on opportunities quickly in this dynamic market landscape. Its asset management services are designed to meet the evolving needs of investors, including high-net-worth individuals, family offices and institutional clients.

Narrowing the access gap

CGS International’s clients are at the centre of its asset management strategies Its specialised approach combines deep market intelligence, rigorous research, and innovative strategies to deliver solutions that thrive in today’s complex environment. CGS International’s unique structure allows clients to explore the full investment spectrum in both the private and public markets.

Some of CGS International’s solutions for 30 ASIAN BANKINGAND & FINANCE 2026 ASIAN BANKING FINANCE| Q1 | DECEMBER 2019

Front row (L-R): Nikhil Niyogi, Group Head of Investment Solutions, PBIS; Ademola Olopade, CEO of Mauritius cum Group Head of PBIS, and James Ong, Group Head of Asset Management.

Back row (L-R): Jake Chow Tien Wai, Portfolio Manager, PBIS; Gunawan Wijaya, Portfolio Manager, PBIS; Grace Yan, Senior Portfolio Manager, Asset Management; and Phua Zhenghao, Group Head of Investments, Asset Management.

accredited and institutional investors include: SQN Global Target Maturity Fund This is a structured USD global bond fund with a fixed maturity, which is designed for investors looking to optimise as well as earn consistent, stable returns in today’s volatile market environment.

APAC Core Multifactor Strategy Comprising only APAC-listed companies, the fund leverages CGS International’s in-house QVM model to achieve mediumto long-term capital appreciation through investing systematically in profitable companies (Quality), trading at a reasonable price (Value) and trending in the desired direction (Momentum).

Ascend Access Strategy A discretionary portfolio mandate providing accredited investors and institutional investors with disciplined access to IPOs, secondary placements, and qualifying newly listed companies in ASEAN, with selective Hong Kong and China A-share exposure.

CGSI Managed Multi Asset Core Solutions Offers globally diversified portfolios tailored to investor risk profiles and designed for longterm wealth creation. Each portfolio combines global core equity, emerging markets, fixed income, and gold, with allocations calibrated to balance risk and return.

Professional management Overseeing CGS International’s asset management strategies are: James Ong, Group Head of Asset Management, an industry veteran with 29 years of proven track record in asset

management, strategic planning and governance, James and his team specialise in China and ASEAN strategies, helping clients benefit from the immense untapped opportunities in the two regions.

Ademola Olopade, Group Head of Prime Brokerage & Investment Solutions. With over 25 years of experience in delivering stellar prime solutions to clients, Ademola leads his team to provide a comprehensive suite of solutions to support complex investment strategies for hedge funds, asset managers, family offices, proprietary traders, and broker-dealers.

Taking a proven bottom-up, researchdriven philosophy, the investment house’s teams leverage CGS International’s award-winning research teams and deep regional presence and connectivity to deliver differentiated growth opportunities across Asia.

Your partner for the future In a world where change is the only constant, CGS International stands as your trusted partner.

CGS International empowers clients to navigate uncertainty and seize growth with global access, research-driven clarity, and institutional rigour, helping them to turn ambitions into achievements.

CONTACT For enquiries, please contact SGGroupAssetManagement@cgsi.com Visit the CGS International website: www.cgsi.com

Banking globally Achieve your international aspirations with seamless financial support.

SCAN QR CODE TO FIND OUT MORE

Issued by HSBC Bank Vietnam Ltd. Website: hsbc.com.vn/en-vn/premier/ Hotline (24/7): (84 28) 37 247 666 Email: hsbcpremiervn@hsbc.com.vn

ASIAN BANKING & FINANCE | Q1 2026 31

MARKET REPORT: HONG KONG

HK banks face critical software talent gap through 2030 Software development will remain the most significant talent shortfall.

H

ong Kong job seekers will increasingly need the ability to work with and manage artificial intelligence (AI) tools— from understanding how automated systems make decisions to checking for errors—as banks rely more heavily on data and machine learning, according to analysts.

“Skill gaps continue to persist in sustainable finance, compliance, and data analysis,” Dora Leung, senior manager in banking and financial services at recruitment company Randstad Hong Kong Ltd., told Asian Banking & Finance.

“Upskilling efforts and targeted training have helped narrow the gap, but talent must continue to keep pace with changing regulations and AI tool integration,” she said in an interview.

The ability to understand and use AI systems will become one of the fastest-rising skill needs in the sector, according to a study by the Hong Kong Monetary Authority (HKMA).

Software development is also

Dora Leung

Wisely Wong

Justin Tan

Only 37% of companies use generative AI regularly

32 ASIAN BANKING & FINANCE | Q1 2026

projected to be the biggest skill gap by 2030, with 36% of banks identifying it as a major constraint.

“To future-proof careers in an increasingly automated environment, banking professionals have to acquire the skills needed to communicate and interact with AI systems effectively,” HKMA said, adding that digital automation is already influencing how banks assess performance, manage risk, and deliver services.

Yet banks are struggling to bring in AI and data specialists at the speed they want. Demand for machine-learning talent is high across industries, and candidates who are strong in AI often lack experience working in a highly regulated environment, said Wisely Wong, senior director at Hays Hong Kong.

“Banking is a regulated sector. Even experienced AI hires still take time to warm up and understand banking products and compliance constraints, which delays impact,” he said.

The central bank's study noted

that banks’ adoption of big data, AI and automation would continue to expand even as a shortage in specialist talent remains a bottleneck.

Some lenders have launched in-house training to accelerate adoption, it added.

UBS Group AG and DBS Bank Ltd. have rolled out AI-focused certification programmes to help employees understand how to use the tools in risk, operations and customer management, said Justin Tan, head of L.E.K. Consulting’s Asia financial service practice.

“Senior management needs to walk the talk and ensure they themselves are conversant in the new paradigm,” Tan said, adding that support, incentives, and engagement from leadership are essential.

Uneven adoption Despite the rapid growth in demand for AI-literate talent, adoption across financial services remains uneven.

Mercer’s Global Talent Trends 2025 report showed only 37% of companies use generative AI regularly and just 7% think AI has fundamentally changed their business model.

Many cite heightened operational and reputational risks from misuse of the technology.

To close the gap, Leung told the magazine that employers should shift towards skill-based hiring rather than prioritising past experience. Recruiters said administrative roles remain the most vulnerable to automation, including in finance.

“Organisations are likely to become smaller but potentially more profitable because the goal is to make more money, but with lower employment costs,” John Mullally, managing director in Hong Kong at Robert Walters Plc., told Asian Banking & Finance.

He added that many workers have specialised too narrowly and would need broader skill sets to stay competitive.

Mercer found that half of organisations are redesigning work to boost productivity, whilst 61% are in the early stages of becoming “skill-powered.” Firms further along in this transition report higher retention, engagement and output.

ASIAN BANKING & FINANCE | Q1 2026 33

EVENT NEWS: SINGAPORE FINTECH FESTIVAL 2025

Foreign firms eye Japan as fintech rules firm The country's 600-700 fintechs have strong integration with major financial institutions.

SINGAPORE

F

oreign financial institutions highlighted the need to work through trusted institutions and align with Japan’s supervisory environment amdist a growing attractive financial technology (fintech) environment.

Foreign participants also emphasised that partnerships are essential for entering the Japanese market because of consumer expectations and regulatory precision, industry leaders said during the “Japan’s FinTech Frontier: Investing in Innovation and Inclusion Across Asia” session at the Singapore FinTech Festival 2025 on 14 November 2025.

Speakers pointed to demographic pressures as a structural driver of fintech adoption in Japan. An ageing population and declining workforce participation are increasing demand for efficient financial services, prompting institutions to digitise operations and simplify customer journeys across banking, insurance, and payments.

“They’re digitally savvy, very protection-oriented, and you have a regulator who’s extremely sophisticated and disciplined,” said Rob Schimek, group chief executive officer of bolttech.

Divsersified collaboration The panel agreed that Japan’s fintech trajectory is shaped by diversified forms of collaboration.

They said demographic trends favour partnerships that combine technology capabilities with established distribution, risk management, and compliance frameworks, rather than standalone market entry strategies led solely by new digital players seeking rapid scale without local institutional integration.

“Acquisition is one thing, but there are more strategic investments… and new types of banking-as-a-service creating new value propositions,” said Makoto Shibata, chief community officer and head and Head of FINOLAB. These models allow both incumbents and new entrants to deliver services within existing institutional frameworks.

34 ASIAN BANKING & FINANCE | Q1 2026

Rob Schimek

Makoto Shibata

Masashi Namatame

Panelists said demographic trends favour partnerships that combine technology capabilities with established distribution, risk management, and compliance frameworks, rather than standalone market entry strategies led solely by new digital players seeking rapid scale without local institutional integration.

Shibata outlined how this collaborative environment developed over a decade. “[FINOLAB] started with five startups, and now we have 57 members, including 17 international startups,” he said.

He added that the wider Japanese ecosystem now includes 600 or 700 fintech companies, reflecting stronger integration with major financial institutions and fewer stalled proofs of concept.

The experts said foreign firms that succeed tend to prioritise governance, data protection, and operational resilience, aligning internal controls with supervisory expectations whilst adapting offerings to local consumer behaviour over extended regulatory review cycles.

Masashi Namatame, senior managing executive officer and group chief digital officer of Tokio Marine Holdings, described how digitalisation reshaped Japan’s financial sector and reduced boundaries between banking, insurance and telecommunications.

Japan's fintech direction is defined by coordinated development rather than disruption

“Most recent 10 years have been just amazing, because Japan's digital innovation in the banking industries have been almost entirely unlocked,” he told the panel attendees.

Regulatory reforms have expanded the range of services incumbents can offer. Updates to banking and insurance rules have enabled diversification into new business areas, whilst the Financial Services Agency’s FinTech Week created a national platform for engagement among startups, technology providers and institutions. “Japanese regulatory environment has now become extremely supportive to innovation and technology and partnerships,” Namatame said.

Shibata added that new collaboration models, such as banking-as-a-service, are widening access for underserved groups.

He cited banks enabling foreign nationals in Japan to access deposit and remittance services through a streamlined structure.

The panel reinforced that Japan’s fintech direction is defined by coordinated development rather than disruption. Regulatory clarity, institutional trust, and demographic needs continue to shape how both domestic and foreign firms participate in the market.

MariBank means Let’s Bank Banking that is simple, reliable and rewarding for everyone

MARI SAVINGS ACCOUNT

MARI CREDIT CARD

MARI INVEST

MARI BUSINESS ACCOUNT

SME Financial Inclusion Initiative of the Year (Singapore) Asian Banking and Finance Retail Banking Awards 2025

We are licensed by the Monetary Authority of Singapore and are a Deposit Insurance Scheme member.

For more information please visit our website at www.maribank.sg Insured up to S$100k by SDIC. ASIAN BANKING & FINANCE | Q1 2026 35

EVENT NEWS: SINGAPORE FINTECH FESTIVAL 2025

UOB calls for aligned AI standards and trust Technology should empower people, not replace human judgment and empathy. not a technology first approach,” focusing on creativity, curiosity, and problem-solving guided by purpose and values. According to Wee, technology enables innovation, but it is a people-centric mindset that ensures its sustainability.

Wee urged firms and individuals to continuously learn and adapt.

“At the same time, every one of us has a responsibility to ourselves and people around us to keep learning, to upskill and reskill, so that we stay relevant, adaptable and ready for what's next,” he added.

Wee Ee Cheong, UOB deputy chairman and CEO (Photo from SFF)

SINGAPORE

C

ollaboration between banks, fintechs, and regulators is essential to ensure artificial intelligence (AI) and digital innovations can scale safely.

“Banks, fintechs, regulators and industry players must work together on shared standards, trusted digital identities and secure data networks in a faster world,” United Overseas Bank Deputy Chairman and CEO Wee Ee Cheong said at the “Banking Leadership in the Digital Age” session at the Singapore FinTech Festival 2025, held on the Festival Stage on 12 November.

Wee warned that rapid adoption of technology without sufficient safeguards could undermine trust.

“Speed without security is fragile.

Only trust will build relationships that lasts,” he told the attendees stressing that trust and transparency

36 ASIAN BANKING & FINANCE | Q1 2026

Speed without security is fragile. Only trust will build relationships that lasts

will be the new competitive edge in financial services.

The chief executive also pointed to practical constraints that companies must consider when adopting AI and other emerging technologies.

He highlighted the promise of AI and blockchain technologies but cautioned that their potential can only be realised with clear regulations and harmonised industry standards.

Whilst technology is transforming finance, he noted that the human element remains essential. “AI cannot replace empathy in advice, ethics in decisions, leadership and judgment, ultimately, trust built over time,” Wee said. “AI should help people to do more and do it faster, not replace them," he added.

He urged financial institutions to adopt a “mindset first approach,

Regional moves Wee also highlighted regional efforts to promote AI adoption and responsible innovation, noting that the UOB FinLab AI Ready Programme has supported over 1,000 small and medium-sized enterprises across ASEAN, helping them take their first steps towards embracing AI. He added that UOB is involving employees in the innovation journey by establishing an innovation academy for AI upskilling, reaching all 32,000 employees across its regional network.

The bank has also set up an AI and Data Analytics Center of Excellence in partnership with Infocomm Media Development Authority and Monetary Authority of Singapore to develop talent in generative AI and automation.

Looking ahead, Wee said in the session that financial services will become smarter, faster, and more inclusive, powered by data and AI. Tokenisation and near-instant settlement could link ASEAN markets seamlessly with global financial systems, enabling new trade and investment flows.

“If we all work together, we will shape a financial industry that is resilient, adaptive, and aligned with society's evolving needs and value,” he told the attendees.

“Companies that thrive will be those that prove technology can serve both people and planet, delivering long term value, not short term noise,” he continued.

ASIAN BANKING & FINANCE | Q1 2026 37

EVENT NEWS: SINGAPORE FINTECH FESTIVAL 2025 On sustainability, Menon said AI in fintech has the potential to help decarbonise operations, even as AI and data centres consume large amounts of energy.

“It cannot be eating up all the world's energy resources just to do what we are doing much more efficiently. So that stage of AI's development is what's going to make sure it's sustainable,” he said.

Aside from artificial intelligence, he still cited that electronic payments and asset tokenisation have made transactions more efficient.

Sally, Carstens, Jing, and Menon at Singapore Fintech Festival 2025 (Photo from SFF)

Fintech 'quantum leap' outpaces global policy

Finance execs warn that AI and tokenisation advancements are moving faster SINGAPORE

T

he financial technology (fintech) industry faces governance and sustainability risk as the sector continues to explore and advance the use of artificial intelligence (AI), asset tokenisation, and electronic payments.

“Digital technologies centred on foundational architecture, electronic payments, digital identities, trusted data, asset tokenisation and programmable money as the basis for the new financial system and as a key enabler for not just financial activities, but almost all parts of the economy,” said Ravi Menon, chairman of the board of directors, Global Finance & Technology Network (GFTN).

“So I think we're in the cusp of a next stage of a quantum leap,” Menon said at Singapore Fintech Festival 2025 during the “Steering the Global Future” session held at the Festival stage in November 2025.

Whilst advancements in fintech bring tremendous benefits, they 38 ASIAN BANKING & FINANCE | Q1 2026

We're in the cusp of a next stage of a quantum leap

face regulation and sustainability challenges, he told leaders from Bank for International Settlements (BIS) and Ant Group during the session, moderated by writer and former professor Dr. Razeen Sally.

“I think regulators and authorities have to embrace innovation now.

There are some examples where the authorities have kept up with the pace of innovation, and you can see that in their ecosystems that they're producing,” said Agustin Carstens, former general manager at BIS. “MAS has embraced innovation, invested a lot in innovation, and developed a very strong human capital to be able to do the job,” Carstens pointed out.

“The same needs to happen in many other latitudes. We have to embrace innovation in such a way that we can assure that adoption is safe, is appropriate, and welfare is improving without being a major stumbling block in the process of innovation,” he added.

Pulling force Eric Jing, chairman at Ant Group Co. Ltd., described the trend: “Agentic AI will be booming. I think today, agents already have you to purchase, maybe a product, or help you make a reservation and pay a deposit, so that's a pulling force for agentic pay to ensure a smooth customer experience, right? But that's not the whole thing.”

Jing said this was only an early stage, noting that agents within multi-agent or genetic systems were already able to collaborate on complex tasks. Such work would generate revenue, he added, with payments distributed amongst participating agents under predefined terms or smart contracts.

“I think agentic pay will definitely be booming, very, very quickly,” he told the session attendees.

Jing said that in considering AI-related scenarios involving tokenisation, one key area was the tokenisation of money, which he argued would enable real-time, crossborder settlement. He added that this would particularly benefit small and medium-sized enterprises and companies engaged in global trade, especially on the payments side.

“Secondly, on our asset side, the tokenisation of various assets onto the chain, we're enabling the kind of trade off the asset of the tokens across markets, across institutions and more efficiently, more transparently and credibly,” he added.

Jing also noted that AI is improving risk management and fraud detection across financial services, boosting institutional efficiency and making services more accessible to consumers.

A better way to financial independence

New FinTech Product Award Philippines

Mobile App Award Philippines

Customer Experience Solution Award Philippines

Singlife Philippines

Singlife Philippines

Singlife Philippines

Download and create an account in the Singlife Plan & Protect app to learn more.

ASIAN BANKING & FINANCE | Q1 2026 39

EVENT NEWS: SINGAPORE FINTECH FESTIVAL 2025

Finance leaders push tokenised money Tokenised deposits invert the model, allowing banks to deliver liquidity directly where required.

SINGAPORE

F

inance leaders say there is still a lack of interoperability between traditional financial infrastructure and emerging digital money systems, and stablecoins might just be the solution.

“The buzz has always been around stablecoins,” said Naveen Mallela, Global Co-head of Kinexys at J.P. Morgan, “but stablecoins are just one of the options that you have.”

The rise of stablecoins, deposit tokens, and tokenised assets has transformed the definition of “money,” forcing banks, payment networks, and regulators to rethink liquidity, interoperability, and compliance frameworks.

From J.P. Morgan to Visa, Banking Circle to Pave Bank, financial leaders at the Singapore FinTech Festival 2025 described how they are reengineering financial infrastructure to manage risks whilst unlocking new efficiencies across borders and currencies.

Fundamental shift Mallela announced in the session that J.P. Morgan had launched the first-ever deposit token on a public blockchain, marking a milestone in how bank money is represented and transferred.

He emphasised that this “decoupling of the ledger from the payment instrument” is a fundamental shift, enabling commercial bank money to exist on-chain whilst maintaining its deposit-backed security and regulatory clarity.

By extending deposit-based products into tokenised form, banks can make liquidity available “in venues where it is required,” effectively inverting the traditional model where clients come to banks for access.

“It’s money available in venues where it is required,” said Mallela, “not you come to us where you need money,” he told moderator, Elise Soucie Watts, Executive Director, Global Digital Finance, of the “Digital Money: How ForwardLooking Institutions Are Managing 40 ASIAN BANKING & FINANCE | Q1 2026

Mallela, Ruparel, Sheffield, Soucie Watts, and Dhanani on the panel (Photo from SFF)

If money is on-chain, it's traceable. You can see at every stage what happens

Risks and Seizing Opportunities” session held on 12 November at the FutureMatters stage.

This evolution hints at a hybrid ecosystem where stablecoins, deposit tokens, and central bank digital currencies coexist, each addressing different market needs.

As Mallela noted, “We’re not going to see a mass replacement of all RTGS systems anytime soon… There will be extended coexistence.”

For Mishal Ruparel, chief commercial officer at Banking Circle, the next phase of digital money is about interoperability — the ability to move value instantly across networks and borders.

Ruparel noted that clients increasingly ask how digital assets like stablecoins and tokenised deposits can “provide real-time payments in an instant, 24/7, with absolute clarity.”

For Cuy Sheffield, Visa’s Head of Crypto, the conversation is no longer about speculative crypto but about infrastructure.

“When most people think about Visa, they recognise you have to pay with your card, and it just works instantly,” he said. “What they don't

realise is that we can't actually move the money behind the scenes as fast as we can authorise payment.”

Visa’s experiment with USD coin as a settlement currency aims to solve that bottleneck. This experiment has scaled quickly, and Visa now accepts stablecoins on multiple blockchains, including Ethereum and Solana.

Salim Dhanani, chief executive officer of Pave Bank, argued that modern financial institutions must be rebuilt from the ground up for programmable finance.

Pave Bank’s new core banking stack is designed for “programmable compliance,” where smart contracts can automate risk and policy enforcement.

“If money is on-chain, it’s traceable,” Dhanani said. “You can see at every stage what happens.

The question really comes down to, where is the institution responsible for what happens?”

Dhanani said he envisions a future where institutions manage “programmable risk management” within standardised, interoperable frameworks.

Pakistan’s Best Islamic Bank

Serving you better with our widest range of Shariah compliant products Growing network of 850+ Islamic Branches in more than 350+ cities across Pakistan

ASIAN BANKING & FINANCE | Q1 2026 41

CASE STUDY: CIMB BANK told the magazine.

The bank is not releasing uptake figures but said adoption has been strong, with applications coming from food and beverage operators, online retailers, professional services firms, and emerging consumer brands.

Customers can draw working capital directly from their credit limit through the CIMB Clicks mobile app without additional paperwork.

Sole proprietors aged 21 to 70 may apply, subject to a minimum annual income of $23,000 (Photo from CIMB Singapore)

CIMB card offers SMEs 114-day interest-free drawdowns

It offers 114 days interest-free period for working capital loans.

SINGAPORE

C

IMB Bank Berhad’s Singapore branch has unveiled a credit card for sole proprietors and small-business owners, offering an additional channel for working-capital funding in a segment that often struggles to secure credit from traditional lenders.

The CIMB Founders Card broadens the type of documentation the bank accepts when evaluating applicants. Sole proprietors, for instance, may submit bank statements as part of income assessment—a shift that is meant to address gaps faced by entrepreneurs with irregular earnings or limited credit records.

“Sole proprietors and small and medium enterprises have always faced financing challenges due to irregular income patterns, limited credit histories, and lack of collateral, making traditional loans hard to access and alternative options costly,” Merlyn Tsai, CIMB Singapore’s head

42 ASIAN BANKING & FINANCE | Q1 2026

SMEs have always faced financing challenges due to irregular income patterns, limited credit histories, and lack of collateral

Merlyn Tsai

of consumer banking and digital, told Asian Banking & Finance.

Tsai said the product is built around a low entry threshold.

Singaporeans, Singapore permanent residents, and Malaysians aged 21 to 70 may apply, subject to a minimum annual income of $23,000 (S$30,000) for sole proprietors, self-employed individuals, business owners, and independent contractors. All other applicants face a $38,380 (S$50,000) annual income requirement.

Smoothing out expenses Early users have responded positively to the card’s extended interest-free periods—114 days for working-capital drawdowns and 113 days for retail spending.

“Several early adopters have shared how the card has helped them smooth out seasonal expenses, accelerate inventory purchases, and fund growth initiatives without disrupting day-to-day liquidity,” she

Benefits The card also targets business travellers with perks typically found in premium consumer products.

Cardholders gain complimentary access to more than 1,300 airport lounges worldwide and travel insurance coverage of as much as $768,000 (S$1m).

Tsai said these benefits aim to support entrepreneurs who travel frequently to meet clients, suppliers, or explore overseas expansion.

Other features include zero foreign-exchange fees, discounted access to co-working spaces, along with deals on productivity software and hotels.

Tsai told the magazine that the bank plans to introduce more “founder-focused” offerings, including curated business and travel perks for cardholders and their families.

“And we will continue refining and enhancing the card, so it remains a relevant and trusted companion for founders at every stage of their journey,” she said, adding that demand is expected to grow as more entrepreneurs become familiar with the product’s features.

Earlier in 2025, the bank also launched CIMB FlexiPay, a loan product that was designed to help small and medium-sized enterprises (SMEs) make repayments based on their daily revenue.

For example, if the rate is set at 5% and daily earnings reach $780 (S$1,000), then $39 (S$50) will be repaid. No repayment is required on days without revenue, CIMB said.

The scheme, reportedly the first of its kind in Singapore, is intended to ease cash flow pressures for businesses with seasonal or unpredictable income. The new product carries a single upfront fee with no interest, prepayment penalties, or late charges.

ASIAN BANKING & FINANCE | Q1 2026 43

CASE STUDY: DANA INDONESIA

DANA targets 50m 'overlooked' teens with verified wallet DANA Premium Mini uses IDs to bring teens into the digital economy.

D

ANA Indonesia has unveiled Premium Mini, a verified digital wallet for users aged 13 to under 17, aiming to give minors a structured entry into the country’s digital financial system.

The account requires parental approval, addressing barriers that have historically limited teenagers’ access to formal finance.

The move targets a group often overlooked in policy and product design. Research by DANA shows that teenagers are amongst the most active digital users but have been excluded from verified digital payments due to identification requirements.

The launch also supports Indonesia’s national goal of reaching 93% financial inclusion by 2029.

Official data highlights the access gap. The 2025 National Survey of Financial Literacy and Inclusion reports that only 74% of 15- to 17-year-olds are financially included, below the national average of 80.5%, despite their rapid adoption of digital financial services.

Bridging the gap Vince Iswara, CEO and co-founder of DANA Indonesia, stressed the urgency of bridging this gap.

“Teenagers are already immersed in digital transactions, but they’re doing so without a bridge into formal, protected financial systems,” he told Asian Banking & Finance on the sidelines of the product launch in Jakarta in November 2025. “You can’t tell young people to be financially responsible whilst giving them no legal channel to participate.”

“Financial literacy doesn’t begin at age 17—it begins the moment a child makes their first digital payment,” the chief executive continued.

Premium Mini accounts have a maximum balance of $120 (IDR 2m) and allow top-ups, mobile payments, and peer-to-peer transfers. Parents must approve the account and can monitor all activity, creating oversight that supports early financial learning.

44 ASIAN BANKING & FINANCE | Q1 2026

Financial literacy doesn't begin at age 17—it begins the moment a child makes their first digital payment

Vince Iswara

The account differs from the standard DANA Premium wallet, which has a $1,190 (IDR 20m) limit and includes investment and business features. Premium Mini is positioned as a protected, entry-level product for younger users.

Handayani Ningrum, director of National Population Data Integration at the Ministry of Home Affairs, stressed the initiative’s national impact.

“It’s simple innovation with outsized impact,” she said in a speech at the product launch. She noted that more than 50 million Indonesian children don’t have national ID cards, limiting access to most financial services.

The launch aligns with government rules on child protection in digital systems, which require special safeguards for minors when accessing online financial services.

With teenagers driving digital transactions, the initiative aims to integrate them responsibly into Indonesia’s financial ecosystem.

“The issue is no longer whether minors should enter digital finance,” Vince said. “The real question is

Premium Mini accounts have a maximum balance of $120 (IDR 2m)

how responsibly—and under what safeguards—the sector can support that transition.”

Aside from launching Premium Mini, DANA Indonesia is expanding its regional footprint as the digital wallet seeks to scale payment connectivity between Indonesia and Singapore whilst strengthening its position in Southeast Asia’s fast-growing crossborder payment market.

The platform, which served more than 74 million users as of June, is broadening merchant acceptance both online and at physical points of sale, Iswara said.

He said cross-border payments in the Association of Southeast Asian Nations (ASEAN) have accelerated since Indonesia introduced its QRIS standard for overseas use in 2022.

QRIS is now linked with Thailand’s PromptPay, Singapore’s NETS, Malaysia’s DuitNow and Japan’s JPQR Global, creating a wider network for interoperable scanand-pay transactions.

“For DANA, momentum is clear,” he said in an emailed reply to questions. “We aim to provide a familiar scan-and-pay experience for Indonesians abroad, supported by the same protection and risk framework they rely on at home.”

Merchants across the region also gain easier access to Indonesian consumers through QR acceptance, he added.

ASIAN BANKING & FINANCE | Q1 2026 45

OPINION

Thailand backs major conglomerates for digital banks but risks stifling innovation

T

hailand's financial landscape is set for a dramatic shape-up in 2026 with the entrance of digitalonly banks. In July, the Bank of Thailand (BOT) granted three digital banking licences, choosing consortiums that combine local conglomerate strength with established foreign expertise.

All the consortiums are expected to take advantage of their parent companies' strengths—but how much this will help them scale their businesses is the question.

The choice of three well-known consortiums is certainly a safe play for the BOT and will imbue these new digital banks with trust and stability, but it does raise the question of whether the BOT played it too safe and potentially stifled innovation.

Below is a look at each of the three consortia and what their strategies might look like.

E-wallet dominance and convenience store tie-ups Perhaps the most exciting digital bank is the one backed by ACM Holding Co., which operates TrueMoney, the largest e-wallet in the country.

With a 53% market share and 17 million active users, it holds a scale that surpasses even established local banks that have 50-100 years of history.

Added to that is its connection to the Charoen Pokphand (CP) Group, Thailand's largest privatelyowned business, whose subsidiary CP ALL holds the license to 7-Eleven in Thailand. Thai people may just find that the over 15,430 7-Eleven stores across the country transform into banking hubs.

The digital bank may even offer services aimed at business owners and suppliers. CP Group owns a controlling stake in Charoen Pokphand Foods (CPF), one of the world's largest producers of feed, shrimp, poultry, pork, and other agricultural products, based on 2024 data from Market Research Reports.

FRANCES GAGUA Senior Journalist Charlton Media Group

Established brands The digital bank being built by China's WeTechnology Limited, South Korea's Kakaobank Corp, and Siam Commercial Bank (SCB) brings together the history and proven expertise of two established digital bank brands and Thailand's oldest bank. WeTechnology Limited is owned by WeBank, the leading digital bank in China, whilst Kakaobank is the biggest digital bank in South Korea. Both digital banks have been profitable for over five years. SCB, meanwhile, is the oldest bank in Thailand, backed by decades of data and a brand recognised by virtually every local.

But this digital bank won't have the same advantage as WeBank and Kakaobank. Both launched with direct integration into their countries' messaging apps: WeChat in China and KakaoTalk in South Korea.

46 ASIAN BANKING & FINANCE | Q1 2026

In Thailand, the biggest messaging app is LINE, used by over 80% of internet users.

One strength they may have is in cross-border banking services. The new digital bank might take advantage of WeBank and Kakaobank to set up a payment ecosystem enabling Thai visitors going to China and South Korea to have an easier time paying there. What unique features and identity they will rollout is something to look forward to.

Gas stations as bank branches?

The final consortium combines old-school touchpoints and has the advantage of being tied to Thailand's biggest state-owned conglomerate.

Krungthai Bank (KTB) teamed up with PTT Oil and Retail Business Public Company Limited (PTT Oil) and Advanced Info Service to set-up Clicx Bank Public Company Limited (VBCo).

Clicx Bank may take advantage of PTT Oil's network of 2,200 gasoline stations across Thailand.

They may offer rewards points and discounts when refilling tanks or may even transform gas stations into hybrid bank branches where people can deposit and withdraw money.

A question of innovation Thailand's central bank did its research: it chose consortiums with companies that have a history of digital bank success overseas (WeBank, Kakaobank), are backed by its largest conglomerates (PTT Oil, CP Group), or come from established financial brands (Siam Commercial Bank, Krungthai Bank, and TrueMoney).

Therein lies the problem: all three consortiums feature established financial brands and the country's largest conglomerates.

Compare this with Singapore, which has MariBank backed by e-commerce giant Shopee and GXS Bank backed by ride-hailing and delivery app Grab. Both companies emerged in the 2010s; the youngest company in Thailand's successful digital bank licensees is TrueMoney, established in 2003.

The leader of Singapore's digital banks did end up becoming Trust Bank, backed by Standard Chartered—but there was no doubt that its mix of players had led to new ways of saving. These include e-commerce-tied cashback cards and coins cashback for their phone bills, for example.

Thailand, meanwhile, may have played it too safe.

Time will tell if the digital banks operate with just the same recycled rewards products that incumbents are already capable of offering, or if they will offer new ways of spending and money saving for the Thai population.

ASIAN BANKING & FINANCE | Q1 2026 47

OPINION

The future of Asian banking isn’t ‘AIfirst’ – it’s ‘fearless-first’

T

he biggest temptation is to treat artificial intelligence (AI) as a “bolt-on feature.” As Asia’s financial sector is discovering, the brave banks that trust AI to help rewrite their organisations – not just automate them – will seize tomorrow’s profits. Playing it safe is now the riskiest move of all.

Every week brings new headlines across Asia about how regional banks are leading the world in adopting artificial intelligence. Eighty-eight percent say they have deployed the latest technology in customer service, risk analysis, and more.

But behind closed boardroom doors, a very different conversation is happening. CEOs and CFOs are asking hard questions: “Where’s the ROI?” “Why did we spend millions on AI pilots with so little to show for it?”

Because dig deeper and two numbers flash red: 88% AI deployed, but only 39% profitably using it.

After all those glossy pilots – from chatbots to backoffice automation – more than half of those banks see little bottom-line change. Executives are quietly panicking as competitors tout the same AI wins whilst their own balance sheets tell a different story. The critical question executives now demand answers to: why are so many pilots unable to cross the profitability chasm?

And here's the uncomfortable truth that almost no one in the industry wants to say out loud: The technology works fine. The problem is everything else.

NICOLE ZHOU Senior Partner McKinsey & Co.

The elephant in the boardroom Walk into any banking conference in Asia and you’ll hear endless panels on “AI strategy” and “nextgeneration algorithms.”

What you won’t hear? The messy and uncomfortable work of organisational transformation.

It’s the industry’s worst-kept secret. Vendors won’t talk about it because they’re selling technology, not change management. And bank executives? Many would rather invest in another AI pilot than confront the reality that their hundred-year-old organisational structures are the real obstacle to AI profitability.

The conversation is stuck on the wrong question.

Banks keep asking: “Which AI should we buy?” when they should be asking: “How fundamentally must we reorganise ourselves for AI to actually work?”

The 88-to-39 gap is really telling us: the real barrier isn’t algorithms – it’s the willingness, and courage, to be more than “AI adopters.” And the industry conversation is conspicuously silent on this front.

When generative AI exploded onto the scene, banks rushed to invest and headline-chase. But the next phase is quietly underway: Agentic AI. What’s the difference? Generative AI teaches machines to express; Agentic AI systems learn to collaborate. In modern finance, this means unlocking

48 ASIAN BANKING & FINANCE | Q1 2026

teamwork between humans, bots, and data advisors who each take on part of decision-making and execution.

An AI agent doesn't just flag financial risks – it negotiates with other systems, proposes responses, and learns from outcomes. The conversation shifts from reducing costs to reimagining how profits are made.

But here’s the problem executives are discovering the hard way: You can’t run a collaborative AI system inside a command-and-control organisational structure. It's like running Formula One racing on horse-and-buggy roads. The technology is ready. Your org chart isn’t.

Why your AI investments aren’t paying off The biggest temptation is to treat AI as a “bolt-on feature.” Buy the latest software, hook it to your old systems, and hope that profitability magically rises.

But as frustrated executives are now realising – hope isn’t a strategy. This is the inconvenient truth the industry needs to face: It’s not enough to deploy an AI agent by plugging in an API – it requires process redesign, organisational restructuring, and employee retraining.

Yet when was the last time you heard a banking keynote dedicate serious time to reorganising power structures, redefining job roles, or dismantling approval hierarchies?

The conversation focuses on the shiny object – the AI itself – whilst ignoring the elephant: your bank’s 20thcentury organisational DNA actively working against 21st-century technology.

The true winners are those banks willing to rethink centuries-old assumptions: hierarchies that decide everything top-down, workflows that prioritise status quo over speed, incentive systems that reward riskaversion, and siloed departments that refuse to share data or decision-making power.

And here’s what makes executives most uncomfortable: This isn’t a technology project they can delegate to IT. This is a fundamental business transformation that requires them to give up control, redistribute power, and accept that their banks will look radically different on the other side.

Those who dare to flatten hierarchies, encourage cross-departmental teams (with AI as a core member, not just a supporter), and build in tolerance for messy first drafts will achieve sustainable, AI-driven profitability. Those who cling to tradition won’t survive the next wave of competition.

The real enemy isn’t complexity In Asia’s banking halls, what holds most institutions back isn’t lack of capital or smart people – it’s a deep aversion to organisational messiness. But in the world of Agentic AI, safety is now the highest-risk bet.

22-23 April, 2026 | Singapore Join us for an unparalleled experience where the world’s brightest minds and boldest ideas converge to shape the future of business, sports, and entertainment.

Request Your Invitation via QR code or at CONVERGELIVE.com

4 ASIAN BANKING & FINANCE | Q1 2026