Asian Banking & Finance (April to June 2025)

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EDITORIAL

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omen bankers’ share how they are shaping the top banks’ strategies in Asia— from supporting emerging businesses in Singapore, to tackling risks for a top homegrown Hong Kong bank. On page 24, OCBC’s Iris Ng talks about how she went from working with small businesses in Singapore to becoming head of emerging business for global commercial banking.

Tim Charlton

Curious what the day is like for the chief risk officer of Bank of East Asia? Ivy Chan answers questions on tackling evolving banking risks and uplifting women bankers on page 28.

On page 20, global payment solutions co-head Yvonne Yiu shares how she’s steering HSBC to become the top cash management bank worldwide; while on page 26, UOB TMRW’s head Choo Wan Sim recounts her journey from flight attendant to head of the Singapore bank’s mobile-only banking arm.

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The shifts aren’t limited to leadership. Across Southeast Asia, banks are rolling out tools that improve access and speed for everyday users. These include on-the-spot debit card replacements at RHB branches in Malaysia, and RCBC’s cardless ATM services that have extended banking access to far-flung rural communities in the Philippines. Find out more on page 12. GCash, meanwhile, is testing sound-based devices aimed at micro-merchants without smartphones. Full story on page 14.

At a regional level, Thai digital banks are being pushed to rethink their ecosystem dependencies, and in the Philippines, central bank officials outline the next stage of regional payment linkages with Malaysia and Japan. Read more of these issues on pages 38 and 34.

Read on and enjoy.

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ASIAN BANKING & FINANCE | Q2 2025 1

CONTENTS

INTERVIEW

24 OCBC’S IRIS NG CHAMPIONS SMES, GREEN FINANCING

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SECTOR REPORT BANKING TURMOIL FROM INDONESIAN SWF FLAGGED

20

INTERVIEW HSBC BACKS THE FUTURE OF REAL-TIME PAYMENTS

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FIRST 06 From deepfakes to biometrics: eight trends every banker must know 08 Banks lag on support for instant payment

PRODUCT WATCH 12 Bank app gets carbon tab

FINTECH WATCH 14 GCash eyes easier payment checking for SMEs

FINANCIAL INSIGHT 16 Banking turmoil from Indonesian SWF flagged

INTERVIEW 22 Cake Digital Bank profits on bitesized finance 26 Work-life balance gives women room to lead 28 Ivy Chan keeps BEA steady in riskheavy year

36 Thai digital banks urged to rethink playbook 38 PH banks and insurers called to pursue human-centred AI adoption 40 How embedded finance and AI are reshaping Malaysia’s finance sector

COUNTRY REPORT

CASE STUDY

30 Wealth managers eye a pie of India’s startup boom 32 Enhanced bourse appeal may lift Singapore’s investment banking space 34 PH central bank gears up for instant cross-border transfers

18 Singapore may impose stricter liquidity rules on fintechs

Hong Kong: Room 1006, 10th Floor 299 QRC, 287-299 Queen's Singapore: Road Central, Sheung Wan, ASIAN BANKING & Building FINANCE Q2 2025 2 St. ASIAN BANKING AND FINANCE|Hong | MARCH 101 Cecil #17-09 Tong Eng Kong 2019 Singapore 069533 +852 3972 7166

42 HSBC streamlines Philips’ foreign exchange flows in China 44 Prudential, StanChart cement 25 years of bancassurance tie-up

COMMENTARY 46 Why high capital levels are a doubleedged sword for Singapore banks 48 WealthTech vs. Banks: The battle for Asia’s $700b digital wealth opportunity

SECTOR REPORT

Published Biannually by Charlton Media Group

EVENT NEWS

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

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News from asianbankingandfinance.net Daily news from Asia

INVESTMENT BANKING

Top 25 banks’ market cap increases by 27.1% in Q4 2024 The world’s top 25 banks saw their market capitalisation (market cap) increase by 27.1% year-on-year to $4.6t in Q4 2024, according to GlobalData. Most of the banks’ stocks rose in Q4, benefitting from the US Federal Reserve’s interest rate cuts. ICBC is APAC’s top bank in terms of market cap.

BANKING TECHNOLOGY

CARDS & PAYMENTS

Australia's card acquiring market to grow 5.5% in 2025 Australia’s card acquiring market is expected to grow by 5.5% to reach $713.4b 2025, but this marks a slower pace of expansion compared to previous years as global economic uncertainty—partly stemming from recent US tariffs—casts a shadow over growth prospects, according to a report by GlobalData.

LENDING & CREDIT

RETAIL BANKING

Singapore banks recalibrate regional strategies with ASEAN focus Singaporean banks are recalibrating their regional strategies, with a renewed focus on the ASEAN region, according to a CreditInsights report.

Countries in the region are expected to remain “relatively insulated” from Trump’s trade policies, and even potentially benefit from an increase in non-US cross border trade.

RETAIL BANKING

Maybank Islamic to transform digital banking services

Westpac cuts home loan, deposit interest rate by 0.25%

Vietnam transfers struggling banks' ownership to VPBank, HDBank

Maybank Islamic is transforming its digital banking services, including introducing paperless services and real-time onboarding. The Islamic bank partnered with technology solutions provider audax Financial Technology to help it deliver digital banking solutions built on Amazon Web Services.

Westpac will cut interest rates for home loan and deposit customers by 0.25% per annum. This follows the Reserve Bank of Australia’s decision to decrease the cash rate by 0.25% to 4.1%. Westpac chief executive for the consumer business, Jason Yetton, said the decrease is a “welcome news” for their mortgage customers.

Vietnam has transferred ownership of two “poor-performing” credit institutions to two larger state-owned banks. In January 2025, the State Bank of Vietnam announced the compulsory transfer of GPBank to the Vietnam Prosperity Joint Stock Commercial Bank, a state-owned commercial bank.

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ASIAN BANKING & FINANCE | Q2 2025 5

FIRST Trend #2 Digital identity and deep learning algorithms The world of passwords, security questions, and even card numbers will increasingly become a thing of the past as companies turn to modern methods like biometrics.

“Now and increasingly in the future, authentication will rely more and more on highly secure credentials — your face, fingerprints, and other biometrics,” said TR Ramachandran, head of products and solutions for the Asia-Pacific region at Visa.

“This shift will enhance security and convenience, reducing reliance on traditional PINs (personal identification number) and passwords,” he told the magazine.

Passkeys — password-less authentication powered by biometrics — will gain momentum in 2025, according to a January 2025 report by Mastercard.

Ramachandran expects deep-learning algorithms to become more sophisticated in analysing transaction patterns and identifying risks in real time. Visa, for example, has an AI solution that scores financial institutions using as many as 500 risk factors.

Payment authentication will rely more on biometrics like faces and fingerprints

From deepfakes to biometrics: eight trends every banker must know

BANKING TECHNOLOGY

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iometrics, new data standards, and the rise of artificial intelligence (AI)powered fraud such as deepfakes and voice-cloning are amongst the key trends to watch out for in the payment industry this year, according to analysts.

A new global standard for electronic data interchange among financial institutions is the single biggest change in the payment industry. Starting November 2025, financial institutions around the world must have a single file format for messages.

“Using common data formats will boost efficiency, streamline processes and simplify cross-border transactions,” Vijay Nagarajan, director of payments at data and analytics company LexisNexis Risk Solutions, told Asian Banking & Finance.

Trend #1 ISO 20022 Whilst ISO 20022 introduces standardisation, it won’t completely fix all problems in crossborder payments and money transfers, Nagarajan said in an exclusive interview. He expects the payment industry to continue 6 ASIAN BANKING & FINANCE | Q2 2025

grappling with rising transaction costs, payment failures, and delays.

A failed payment costs about $12.10 per transaction, according to a LexisNexis report released in 2023.

ISO 20022 will improve data flow through a unified framework between systems, according to Maxim Neshcheret, regional director for the Asia-Pacific region at Stockholm-based payment solution provider CMA Small Systems AB. This will not only address integration issues but also enable more structured data collection, he added.

“Businesses must prioritise rolling out ISO 20022-based payment systems, standardising processes, optimising straight-through processing and ensuring compliance in vendor onboarding,” Nagarajan said. “These efforts will minimise friction and significantly improve payment success rates.”

Trend #3 Embedded finance Embedded finance, where third-party financial products and services become part of nonfinancial digital platforms, will become more integrated in the merchant ecosystem in 2025, Ramachandran said. “We’re also seeing an uptick in embedded finance lending products and white-label embedded finance payment solutions.”

Solutions such as buy now, pay later and product insurance likewise offer customers more flexible payment options.

“When done right, it’s a four-way win — providers gain from low-cost distribution; enablers tap into demand for simplicity and convenience; distributors improve platform engagement; and most importantly, endusers get contextualised financial services in one place,” Ramachandran said.

Trend #4 Automated fraud-handling Financial authorities are expected to centralise their anti-fraud efforts using fraud centres, according to experts.

Malaysia’s central bank, for example, has launched a national fraud portal for fund recovery and has set a benchmark for similar projects. Kazakhstan has its own Anti-Fraud Center, which has prevented close to $2m in fraudulent transactions.

These centres use AI and machine learning to detect fraudulent patterns in real time

This shift will enhance security and convenience, reducing reliance on traditional PINs and passwords

FIRST APAC Card payments value ($ trillion), 2020-29

Source: GlobalData

and streamline the process of handling scam reports, Neshcheret said.

Trend #5 AI-powered attacks Just as financial institutions and payments increasingly use AI, so too will the bad actors.

“AI-powered attacks such as deepfakes and sophisticated FaceID bypass attempts are advancing steadily, creating more convincing attacks,” Jan Sysmans, head of marketing for Asia-Pacific and Japan at mobile app security provider Appdome, Inc., told Asian Banking & Finance in a separate interview.

Basic data and code-level defence and protection from jailbreak, root and man-inthe-middle attacks are no longer adequate against these threats, he pointed out.

To stay ahead, the payment industry should use a security strategy that goes beyond traditional runtime application self-protection, which monitors and blocks cyberattacks in real time, Sysmans said.

Trend #6 Overseas payment links Expect Southeast Asian countries to lead the development of more cross-border and realtime payment systems this year.

There’s the link between Thailand’s PromptPay and Singapore’s PayNow, allowing seamless transactions between them, said Hanspeter Jsler, a digital payment expert at German security technology company Giesecke+Devrient in Singapore.

“In a broader initiative, central banks in India, Malaysia, Thailand, Singapore, and the Philippines are collaborating to establish an instant cross-border retail payment platform by 2026,” he told the magazine.

There’s also the NEXUS project, which will start this year and represents a critical step to improve connectivity among countries. The project involving India, Malaysia, Thailand, Singapore, the Philippines, and Indonesia is expected to create an instant cross-border retail payment platform by 2026.

Trend #7 Click to Pay and stablecoins Expect more e-checkout payment solutions when shopping online, Jsler said.

“Technologies like Click to Pay are emerging as solutions to this challenge, offering a consistent, secure and user-friendly e-checkout experience that works across devices, channels, and payment cards,” he pointed out to the magazine.

Click to Pay could help lessen cart abandonment due to concerns over security and convenience. Stablecoins also have a chance to expand in 2025 amidst changes in global rules, he added.

“With the introduction of MiCA in Europe and expected regulatory frameworks in the US, Stablecoins are set to gain wider acceptance,” Neshcheret said.

Trend #8 Alternative data Payment systems will increasingly use alternative data to fill gaps in traditional credit systems, according to Carey Anderson, chief executive officer at New Jersey-based AI analytics company 1datapipe.

Alternative data include geolifestyle insights, transaction behaviours, and utility payment histories.

“These data sources enable advanced AI models to fill gaps left by traditional credit systems, creating opportunities for informal workers and small businesses to access financial services,” Anderson said in an exclusive interview.

AI models analyse alternative data to estimate income for informal and gig workers, giving a fairer and more accurate foundation for credit scoring and payment solutions, he added.

THE CHARTIST: NEARLY 30 MILLION FILIPINOS HAVE USED BNPL

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bout 28.4 million Filipinos have used buy now pay later (BNPL) services by end-2024, according to data from financial services firm UnaCash.

This is 40% higher than the 20.3 million unique users reported as of end-2023, the company added.

This makes the Philippines the second-ranked country in terms of BNPL penetration rate amongst its total population, behind Singapore, which has a 31.36% penetration rate or 1.9 million users out of its 6.05 total population. Malaysia, Thailand, and Indonesia followed.

“Filipinos are clearly embracing the flexibility and convenience that buy now, pay later services offer, and businesses are embracing this critical strategy to enhance customer

accessibility and satisfaction,” according to Erwin Ocampo, head of product for UnaCash.

UnaCash estimates an increase of BNPL usage in the Philippines by 28.39% amongst the total population at the end of 2025. Its growth is also particularly notable amongst BNPL users on digital commerce platforms where there is an anticipated usage increase of 34.24%.

“Flexible payment options are becoming the norm, a main selling point especially amongst Gen Z's and Millennials,” Ocampo said.

He added that embracing partnerships with financial services players is a way for businesses to meet the shifting demands of consumers and position themselves for long-term success in the competitive marketplace.

Unique BNPL users in the Philippines

Source: UnaCash

ASIAN BANKING & FINANCE | Q2 2025 7

FIRST ROMANCE SCAMS EXPOSE BANKS TO REPUTATIONAL RISKS RETAIL BANKING

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omance scams have risen to a six-year high, increasing banks’ exposure to issues like reputational risks and fines.

In a report released in February 2025, Moody’s said that there are 1,193 new entities and people globally with potential ties to romance scams in 2024— a 14% increase compared to 2023, and the highest in six years.

“Romance scams can expose banks and other financial institutions to reputational and financial risk as the money gained by fraudsters via romance scams is often laundered via traditional banking systems,” Moody’s Ratings wrote in a report released in February this year.

How scams work These scammers often use shell companies so that it doesn’t look like money is going overseas, according to Richard Graham, a director in Moody’s Compliance & Third-Party Risk Management team.

By setting up shell companies across different jurisdictions, scammers can obscure their money trail, complicating efforts by authorities to detect and intercept transactions.

Criminals often seek to launder the money generated from romance scams like sextortion via the traditional financial system, Moody’s said.

The US accounted for over a third (38%) of new romance scam profiles amongst top 10 countries. This is followed by Nigeria (14%), India (12%), the UK (11%), Malaysia (5%), China (5%), the Philippines (4%), Brazil (4%), Canada (4%) and Australia (3%).

The number of Malaysian entities and people with potential links to romance scams (romance scam profiles) saw a rapid surge to 64 in 2024 versus 6 in 2023, according to Moody's report.

The number of Filipino entities and people with potential links to romance scams also reportedly saw a rapid surge to 45 in 2024 versus 10 in 2023.

8 ASIAN BANKING & FINANCE | Q2 2025

APAC accounts for nearly two-thirds of the global digital wallet spending at $9.8t

Banks lag on support for instant payment CARDS & PAYMENTS

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eal-time payment adoption amongst banks in the AsiaPacific (APAC) region could slow amidst consumer and regulatory demand for more secure systems due to rising financial crimes, analysts said.

Even amongst super apps — platforms that combine multiple services including instant payments into a single app — fraud remains a sticky issue that could dampen customer sentiment, Ed Metzger, vice president of Payments Efficiency at LexisNexis Risk Solutions Group, told Asian Banking & Finance at Sibos 2024 in Beijing, China.

“People expect payments to become cheaper over time, which increases the cost burden, especially when the industry is facing other pressures like compliance with financial crime regulations,” he added.

Violet Chung, a senior partner at McKinsey & Company, Inc., said regulators all over the world are placing greater emphasis on data security and consumer protection. “As a result, we’re likely to see more use cases where companies enhance their KYC (know your customer) processes and ensure

Ed Metzger

Violet Chung

Craig Ramsey

consumer information is shared only with clear consent.”

Craig Ramsey, head of Real-Time Payments at ACI Worldwide, Inc., told the magazine that the industry should decide what it needs from cross-border instant payments.

“Is it necessary to complete a transaction in a few nanoseconds, or is less than 30 seconds, or even 30 minutes, enough?” he told Asian Banking & Finance at the Beijing event.

“Not every cross-border transaction needs to be instant.”

Banking systems, built for batch processing and limited operating hours, are often ill-equipped for the demands of real-time payments, according to Capgemini Research Institute’s World Payments Report 2025 released.

“The shift to continuous 24/7 and 365 days processing will require significant operational changes. Concurrently, banks must strengthen fraud prevention and anti-money laundering measures to mitigate new risks,” it added.

Only three of seven banks in the APAC region have a strong technology foundation for instant payments, according to the report. In the Americas, it’s 26% and in Europe, it is 13%. Still, Capgemini expects the number of cashless transactions to grow 16.9% this year to a record 1.7 trillion from a year earlier.

“With today’s customers preferring to embrace a frictionless payment experience, this trend is expected to continue as noncash transactions are forecast to reach 2.8 trillion by 2028,” according to the report.

Ability to ‘delight’ Meanwhile, e-wallets and banking apps are rapidly evolving into super apps by assembling many third-party services through mini apps on their integrated platforms and building an all-in-one commerce solution, Deloitte said in a report released in July 2024.

The APAC region accounted for nearly two-thirds of the global digital wallet spending at $9.8t, whilst boasting the highest digital wallet penetration rates amongst all regions, it said.

The most successful super apps focus on ride-sharing, food and grocery delivery, and other financial services, particularly peer-to-peer payments, and issuing cards against balances, Nabil Manji, head of Fintech Growth at Worldpay, told Asian Banking & Finance.

ASIAN BANKING & FINANCE | Q2 2025 9

NUMBERS NUMBERS

WHAT IS THE STATE OF FINTECH IN ASIA? Quarterly funding and deals

Quarterly exits

Annual percent of deals by deal stage

Annual median deal size by global region

Source: CBInsights State of Fintech - Global Q1 2025

10 ASIAN BANKING & FINANCE | Q2 2025

ASIAN BANKING & FINANCE | Q2 2025 11

PRODUCT WATCH PHILIPPINES

RCBC BOOSTS RURAL REACH WITH CARDLESS SERVICES

Bank app gets carbon tab

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INDONESIA

RCBC ATMGo

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izal Commercial Banking Corporation (RCBC) expects its neighbourhood banking initiative to continue growing this year after posting a 30% increase in transaction value in 2024.

Called ATMGo, the service allows cardless withdrawals, deposits, transfers and bill payments through partner merchants such as mom-and-pop stores, rural banks, cooperatives, and small and medium enterprises in the countryside. Users initiate transactions using mobile pointof-sale terminals and QR codes generated by the RCBC mobile app.

“We have seen exponential growth when it comes to this service,” Lito Villanueva, executive vice president and chief innovation and inclusion officer at RCBC, told Asian Banking & Finance on the sidelines of a summit organised by the magazine in Manila in March.

The Philippine lender’s ATM Go is now present in all cities and provinces nationwide, with 94% of the locations owned by partner merchants. Of the total transactions, 94% are outside Metro Manila, and 64% involve women living in rural areas, Villanueva added.

Nationwide reach The service is available as far as the Turtle Islands in Tawi-Tawi, which has a population of just 7,000 residents and is over 1,000 kilometres away from Manila, Philippines. Despite the distance, residents in the island have access to RCBC’s retail banking services since December 2023: from balance inquiry, withdrawal, intra-bank and inter-bank funds transfer, bills payments, e-loading, and opening of accounts.

In an earlier statement, RCBC said that it expects ATMGo to streamline the distribution of benefits of the government’s Pantawid Pamilyang Pilipino Program (4Ps), offering residents an accessible platform for social amelioration withdrawals.

Nationwide, the service is used by local government units, the military and police for payroll, as well as by pensioners.

In February, RCBC said the number of partner merchants rose two-and-a-half times last year, whilst the number of ATM Go terminals increased 46% to 8,426.

Villanueva, who was also a panelist at the event, said one of the challenges they face is expensive internet. Some of their partner merchants in remote areas use Starlink, a satellite internet service provided by SpaceX, to power their banking services, he pointed out.

The Philippines’ monthly broadband cost is $35.55, the third-most expensive internet in Southeast Asia, after Brunei and Singapore, according to a May 2024 study by consumer comparison site Cable.co.uk.

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akarta-based Bank Mandiri now allows users of its superapp, Livin’ by Mandiri, to calculate their carbon footprint from daily activities such as electricity use and transportation, amidst a global push to cut greenhouse gas emissions.

The superapp’s “Livin’ Planet” feature Livin' by Bank Mandiri also suggests practical ways to offset harmful environmental practices, such through the Livin’ Planet feature, and as by planting trees.

“Through this feature, customers can provides financing for climate-based independently measure and understand programmes such as conservation and renewable energy projects. the impact of their activities on the environment,” Darmawan Junaidi, president-director at Indonesia’s biggest Green financing Bank Mandiri had $17.7b (Rp285t) bank by assets, said in a statement. worth of sustainable loans as of September 2024, with green financing Carbon reports Customers can participate in the bank’s continuing to increase, Darmawan said.

Indonesia, which has the thirdtree-planting programme, which is largest tropical forest cover in the world being carried out by its conservation and the largest mangrove ecosystem partner, climate tech platform Jejakin, covering more than 3.36 million using funds from app users. hectares, is a focal point in the world’s “Through this app, customers emission reduction efforts. can access reports that enable them These make Southeast Asia’s most to monitor their contributions to populous nation home to the secondthe environmental preservation programme, making their involvement biggest nature-based solutions in the world, with the potential to absorb 1.5 more transparent,” Darmawan said.

Gigatons (Gt) of carbon dioxide yearly.

He said the bank acts as an ESG (environmental, social, and governance) Bank Mandiri is supporting the country’s key role in cutting adviser for customers transitioning emissions, Darmawan said. to a low-carbon economy, partly MALAYSIA

RHB kiosks replace debit cards on the spot

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HB Bank Berhad has launched kiosks where customers can get their debit cards replaced using a touchscreen machine in less than five minutes.

“Replacing a debit card traditionally required branch visits and manual processing,” Jeffrey Ng, managing director for Group Community Banking at RHB Bank, told Asian Banking & Finance in an exclusive interview.

“With the kiosk, customers can instantly replace their debit cards in under five minutes, streamlining their banking experience significantly,” he added.

Ng said customers only need to pay the standard debit card replacement fee.

Customers can still apply for a replacement card via the Malaysian bank’s online banking channel, he added.

The managing director said the materials used in kiosk-issued cards have the same

quality, design, and durability of those obtained over the counter.

The kiosks are available at two branches — the main branch in Kuala Lumpur and another in Selangor. There are plans to add more kiosks given “overwhelmingly positive customer feedback,” Ng said.

The kiosks have handled 70% of all debit card replacements as of 16 January 2025, he added.

Jeffrey Ng, RHB managing director

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FINTECH WATCH: GCASH

SoundPay device

SoundPay can be availed as part of GCash for Business bundles

SoundPay aims to eliminate manual verification

SMEs and street vendors are the target customers

GCash eyes easier payment checking for SMEs

The sound-based payment verification feature aims to cut queue times.

PHILIPPINES

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Cash for Business recently launched SoundPay, a device that audibly alerts merchants when payments are received, ensuring hassle-free operations for small and medium enterprises (SME).

“Right now, what people typically do is they have a phone — they'll pull it out of their drawer to check if they have been paid,” Jong Layug, head of GCash for Business, told Asian Banking & Finance in an interview.

“In some cases, when the customer is far from the cashier, the staff has to go back and forth to verify the payment, then they'll return to the customer to provide a receipt.”

This disrupts service and consumes time that could have been spent on serving more customers, to the Philippines’ biggest fintech platform said.

Layug said SoundPay fixes these inefficiencies, allowing smoother operations. "In other countries, similar systems embed sound-based payment 14 ASIAN BANKING & FINANCE | Q2 2025

If we can get to the magtataho to wear the device like a lanyard, making it portable, he won't have to bring a phone with him

Jong Layug

capabilities into QR codes that were once just printed on cardboard.”

He said that the new feature cuts queuing times, and early adopters have reported faster customer service since using the device.

Rollout plans GCash for Business is expanding SoundPay’s adoption in the service sector, including food and retail, he said. “Our sweet spot will be SMEs, but if we can get to the magtataho (streetside silken tofu vendor) where he could just wear [the device] like a lanyard, making it portable, he won’t have to bring a phone with him anymore," he told the magazine.

The company will also partner with larger enterprises, including major oil companies like Caltex, SeaOil, and Unioil to expand SoundPay’s footprint. SMEs can apply for SoundPay through GCash for Business or its onsite representatives without an additional cost. The device

is provided free of charge, but Layug said the company might introduce charges in the future depending on its development.

Despite the device's user-friendly design, raising awareness and educating SMEs about its use remains a challenge, Layug said. GCash for Business has been deploying teams to SME-centred events, demonstrating how SoundPay and other business bundles work to attendees.

Layug said there are infrastructural and financial challenges that could slow adoption. Almost 50% of Philippine villages lack private telecommunication service coverage, which limits mobile data access, according to the World Bank.

And whilst GCash has about 96 million registered users, this leaves a big part of the country’s 116 million people without access to e-wallets or banking services.

Layug also noted that other merchants struggle to comply with some requirements to avail of GCash for Business bundles.

The company is working with regulators to simplify requirements for SMEs. In addition, it has partnered with local government units and platforms like Canva and TikTok for marketing and accounting seminars.

We’re your

payments people At the heart of great commerce experiences No matter the channel, you can take, make and manage payments with Worldpay. We also help merchants optimise authentications, fight fraud, get real-time business insights and more. We’re the people-centric payments partner of choice for many of the biggest brands in the world.

146 1m+ 52b $2.3t

Countries across the world

Merchants supported globally

Transactions processed in 2023

Annual processing volume

Let’s talk.

Worldpay.com linkedin.com/company/worldpay/ ASIAN BANKING & FINANCE | Q2 2025 15

FINANCIAL INSIGHT: INDONESIA

Banking turmoil from Indonesian SWF flagged

An ‘institutional firewall’ should shield basic banking functions from the fund.

INDONESIA

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ndonesia’s new sovereign wealth fund (SWF), whose launch in February was followed by market turbulence, could give rise to systemic risk in the banking system if concerns about transparency and political interference are ignored, according to analysts.

“Systemic risk arises when liquidity and public trust are disrupted, especially if there is a perception that public funds are used for nonbanking agendas,” Andry Satrio Nugroho, head of the Center for Industry, Investment and Trade at the Institute for Development of Economics and Finance, told Asian Banking & Finance.

Plummeting rupiah Danantara, modelled after successful SWFs like Singapore’s Temasek and Malaysia’s Khazanah, seeks to optimise the management of stateowned assets including banks, and drive economic growth.

At the fund’s debut, the benchmark Jakarta Composite Index plunged as much as 7%, whilst the rupiah plummeted to its lowest since the 1998 Asian financial crisis, weighed by unease over Indonesian President Prabowo Subianto’s economic agenda and the country’s recent political turmoil.

Andry Satrio Nugroho

Wahyu Jatmiko

Okki Rushartomo Budiprabowo

Danantara plans to take over seven state companies, including three banks

16 ASIAN BANKING & FINANCE | Q2 2025

Danantara plans to take over the management of seven state companies, including three banks — Bank Negara Indonesia (BNI), Bank Rakyat Indonesia, and Bank Mandiri, Indonesia’s biggest bank.

Nugroho cited the need for a robust “institutional firewall” to ensure the separation of Danantara’s strategic role from state banks’ intermediary functions. Third-party funds should strictly be managed by the banks and not pooled into Danantara’s capital, he added.

He also flagged the danger of innovation stagnation at state-owned banks due to bureaucratic red tape.

“If all innovations must be approved by a holding company that may not understand digital banking, banks will lose their agility.”

Nugroho also warned against hidden fiscal risks that could arise if Danantara’s funding sources are tied to limited state budgets.

Wahyu Jatmiko, an assistant professor of banking and finance at the University of Southampton, said the stakes are extremely high, with assets under management projected to reach $900b from an initial $20b.

Jatmiko said Danantara’s success relies on legitimacy, investment strategy, and governance.

He noted that Norway’s

Government Pension Fund and Singapore’s Temasek achieved success through strong stakeholder consensus, sustainable investment strategies, and through stringent governance standards.

He said the fund’s ability to gain public trust depends on its independence and transparency.

“Lack of transparency can lead to moral hazards and corruption, as seen in the 1MDB scandal in Malaysia,” he pointed out.

Jatmiko also cited the need for political and social consensus.

Successful SWFs also tend to focus on long-term investments in tech and healthcare, whilst avoiding environmentally harmful projects.

Low-risk investments BNI expects the move to boost the economy and optimise state-owned assets.

"Danantara opens opportunities for state-owned banks to focus on expansion and operational efficiency, whilst Danantara itself operates as a professional asset manager without burdening the state budget,” said Okki Rushartomo Budiprabowo, corporate secretary at BNI. “As part of the national financial ecosystem, we see Danantara as a major strategy for Indonesia in building a stronger and more competitive economic system,” he told the magazine.

Dony Oskaria, chief operating officer at Danantara, said governance is a top priority, with personnel hiring based on competence and professionalism, amongst other things.

“We work directly with stateowned enterprises and see great potential in reducing fraud risks,” he told reporters during a roundtable event in Jakarta in February.

Danantara Chief Investment Officer Pandu Patria Sjahrir said they would initially focus on lowrisk investments to ensure stability.

“For now, we will avoid high-risk investments with high returns,” he said at the same event. “Our main focus is governance.”

The sovereign wealth fund is also subject to oversight, including audits by the Audit Board of Indonesia to mitigate risks and prevent abuse of authority, he pointed out.

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SECTOR REPORT: FINTECH CLA Global TS Holdings Pte. Ltd., said tighter liquidity requirements would likely be imposed on fund management companies that sell complex or high-reward products.

Chocolate Finance suspended its instant withdrawal function in March

Singapore may impose stricter liquidity rules on fintechs

Singapore's central bank might impose reserve requirements of at least 20% total assets to meet withdrawal demands.

SINGAPORE

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he Monetary Authority of Singapore (MAS) might have to impose stricter liquidity requirements on fintech firms after Chocolate Finance faced financial distress due to a surge in withdrawals, according to analysts.

“Whilst current regulations are strong, authorities may refine guidelines around minimum liquidity requirements to ensure fintech firms hold sufficient reserves to meet withdrawal demands," Li Yang, a senior lecturer at the School of Business of Singapore University of Social Sciences, told Asian Banking & Finance.

According to Li, regulators might mandate fintech companies to hold a portion of their assets in highly liquid forms, such as cash or equivalents with short maturities, he said, citing the European Banking Authority's (EBA) draft regulatory technical standards as a model.

18 ASIAN BANKING & FINANCE | Q2 2025

“The EBA has proposed that a certain percentage of the reserve assets should have maturities no longer than between one to five working days to ensure adequate liquidity,” he said in an exclusive interview.

Li Yang

Henry Tan

Proposed threshold Unlike traditional banks, fintechs are not subject to strict rules, including reserve requirements that force them to keep a certain amount of cash. Deposits with fintechs are also not insured by the Singapore Deposit Insurance Corp. because it is not a bank.

Li said regulators could require fintechs to put at least 20% their assets in investments maturing in five business days to enhance liquidity.

The threshold is “illustrative” and would need to be tailored to the risk profile of a specific firm.

Henry Tan, group CEO and chief innovation officer at accounting firm

Bitter lessons In March, fund management company Chocolate Finance suspended its instant withdrawal function, citing unusually high demand, and announced that withdrawals would now take three to 10 working days to process.

The move came after influencers and financial bloggers flagged concerns over the company's decision to stop supporting AXS bill payments amidst a surge in rewards-driven use that made it unsustainable.

Tan described the Chocolate Finance incident as a consequence of insufficient scrutiny and oversight of “financial influencers.”

“Whilst it is licensed by the MAS as a fund management company, it is not a bank and therefore not subject to the same capital adequacy and depositor protection requirements,” he said.

“The general public may not fully understand these distinctions, especially when investment products are promoted by financial influencers without adequate financial expertise,” according to Tan. Tan advised fintech firms to prevent miscommunication by working with trusted voices or educating users directly.

Meanwhile, Li cited the need for clear and proactive communication during crises, including having a crisis plan, dedicated support, and timely user updates.

“The Chocolate Finance incident serves as a reminder of the importance of liquidity and operational preparedness,” Li said.

He added that regulators would likely refine transparency rules, requiring firms to offer clearer information about fund availability and any potential redemption constraints.

Tan expects clearer guidance on the types of products licensed fund managers can offer and how they structure reward systems.

Chocolate Finance CEO Walter de Oude referred to the incident as "lesson learnt." "Offering a freebie that you know to be unsustainable is not a great way to build long term trust and relationships," he said.

ASIAN BANKING & FINANCE | Q2 2025 19

INTERVIEW

HSBC backs the future of real-time payments The bank's digital solutions allow clients to move their money around the world 24/7.

H APAC

SBC Holdings Plc’s Yvonne Yiu thinks the future of payments is undeniably digital and real time, and the tech is already revolutionising both consumer and business transactions both in terms of convenience and efficiency.

Digital solutions allow HSBC clients to move money around the world 24/7, the British lender’s co-head of Global Payments Solutions, Greater China told Asian Banking & Finance in an exclusive interview.

And this is why HSBC, which has been developing and deploying some of the industry's most advanced tech to make banking easier and more secure, is No. 1 in Asia’s cash management business, Yiu said. She thinks it won’t take long before it takes the top spot globally.

“This is why we are investing in real-time payment infrastructure capabilities that enable them to move money on a real-time basis as quickly as possible,” said Yiu, who is also a Board of Director at the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

“We want to be the first to support our customers in their transformation agenda,” she told the publication. "We are investing in the payment infrastructure. We actually want to continue these advances so that we can be leading in terms of how [clients] can leverage the HSBC network in order to expand their business."

Career journey HSBC wants to be the leading banking network for companies looking to expand overseas, she added.

Yiu, who started her career in the payment business 25 years ago, credits her propensity to ask questions for becoming one of HSBC’s top leaders.

“I started to challenge our product colleagues — why can’t we do this and that? Eventually, they just moved me to [the product team]. “‘Why don’t you just figure out how you can resolve the problem for the client?’” she recalled.

Her journey involved working with the regional receivable product team, then looking after the bank’s business management team, then a role in international markets.

As head of HSBC’s cash management franchise in Greater China, Yiu is responsible for product design and solutions, and selling these to the client.

These days, she is trying to build a cash management corridor for the outbound transactions of Chinese companies through Hong Kong.

In 2021, Yiu was named a director at SWIFT, a messaging network that connects 11,000 financial institutions worldwide to send and receive financial information. She works with other directors in brainstorming ways to develop the network further.

Having women leaders inspires women bankers and shows

20 ASIAN BANKING & FINANCE | Q2 2025

We want to be the first to support our customers in their transformation agenda

them that they no longer have to break through the glass ceiling. This year, HSBC seeks to increase the share of women among senior leaders to 35% from 34.6% last year.

Female leadership In Hong Kong, HSBC’s major businesses are headed by women — HSBC Hong Kong CEO Luanne Lim, affiliate Hang Seng Bank CEO Diana Cesar, and Maggie Ng, HSBC Hong Kong head of Wealth and Personal Banking.

“We have a resource group at the global level put together to focus on talking about these gender-specific female leadership agendas and inviting external parties to come in to share the perspective with our colleagues,” Yiu said.

The bank also has an accelerated female leadership programme for up-and-coming women bankers. Women employees likewise get trained as they progress to senior positions, according to Yiu. Building a relaxed working environment is also part of supporting bankers’ career growth, not just for women bankers but for all future leaders, Yiu said.

It could be as simple as allowing relaxed dress codes, like letting bankers wear jeans to the office. This is a departure from the past, when bankers had to wear suits and ties, she told Asian Banking & Finance.

Yiu said there would always be biases, though there has been a shift after COVID-19 and amidst the rise of financial technology companies, where the norm is less formal work.

Yvonne Yiu, head of Global Payment Solutions at HSBC Greater China

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ASIAN BANKING & FINANCE | Q2 2025 21

INTERVIEW

Cake Digital Bank profits on bite-sized finance The Vietnamese digital bank owes its success to quick loans and low-limit credit cards.

VIETNAM

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o Chi Minh-based Cake Digital Bank broke even in December 2024, joining an exclusive list of digital banks in Asia that have started taking an ever-widening slice of the financial industry.

It credits its success to taking care of smaller financial needs such as quick loans and low-limit credit cards that traditional players have spurned.

“Whilst traditional banks have been digitizing their services, their core focus remains on traditional customers,” Cake Digital Bank CEO Quang Nguyen told Asian Banking & Finance.

“This means smaller financial needs such as quick loans of a few million Vietnamese dong or low-limit credit cards often go unmet because they aren’t a priority and are costly to operate under traditional banking models,” he told the magazine, adding that traditional lenders often exclude these customer groups due to the lack of credit history, insufficient collateral, and cumbersome procedures.

The lender, a part of the Vietnam Prosperity Joint-Stock Commercial Bank, has attracted 5 million customers since it was launched in 2021.

'Easy as cake' Cake Digital Bank’s average revenue was $12 per user as of 2024, and the bank now holds $352m (VND9t) in savings deposits. It more than doubled payment transactions to $4.7b from $2.2b in 2023.

Making things accessible to customers is another ingredient for success, especially in Vietnam where many rural customers were unfamiliar with fully digital banks.

Cake’s answer had been to simplify the user experience — making things “easy as cake,” Nguyen said. Clients can open an account in two minutes and apply for a credit card and loan online, whilst getting pay later approvals with no complex paperwork.

Customers can also access Cake’s financial services from a diverse ecosystem of partners. It is a financial option in the ride-hailing, entertainment, and retail business spaces, according to Nguyen.

Another factor is its people. “We build a local talent team with a strong startup mindset and innovation and a resilient culture," he told Asian Banking & Finance.

Nguyen said artificial intelligence (AI) is also an important backbone of their operations, adding that last year alone, Cake developed more than 60 AI models.

They are also the only digital bank in Vietnam to have developed its own large language model (LLM) AI. “This AI capability is applied across marketing, sales, risk management, and customer service, driving both efficiency and customer value,” Nguyen said. “The cost savings from AI-powered operations enable us to reinvest in better offers and personalised financial solutions.”

Cake is also using generative AI to analyse customer behaviour and provide personalised financial solutions, whether it’s opening a card, savings account, or investment.

Its in-house cloud-based card system speeds up 22 ASIAN BANKING & FINANCE | Q2 2025

Quang Nguyen, CEO at Cake Digital Bank

transactions and reduces costs, whilst AI-powered processes improve everything from onboarding customers via electronic know-your-customer rules to approvals and virtual banking services, Nguyen said. “[We know] which customers have the need to open a card, open a savings account or invest in order to propose appropriate advertisements and provide specific advice to each customer to help us more efficiently in customer portfolio optimization,” he said.

Banking is no longer limited to traditional platforms; financial services are now seamlessly integrated into digital ecosystems

AI-powered processes Cake is banking on AI to help it expand further whilst remaining cost-efficient.

“By leveraging AI-driven automation, we optimise processes like customer support and collection management, reducing the need for manual operations whilst improving speed and accuracy,” Nguyen said.

Cake is also looking to expand its embedded banking solutions. “Banking is no longer limited to traditional platforms; financial services are now seamlessly integrated into digital ecosystems,” he said. “Instead of visiting a bank, users can access financial products directly within the apps and services they use daily."

ASIAN BANKING & FINANCE | Q2 2025 23

INTERVIEW

OCBC’s Iris Ng champions SMEs, green financing

The banker worked on making capital loans more accessible through embedded finance.

I

SINGAPORE

ris Ng’s two-decade journey to become managing director and head of emerging business for global commercial banking at OCBC Bank began with a single goal — to work with entrepreneurs in Singapore.

“I have a particular interest in dealing with businesses,” Ng told Asian Banking & Finance. “When working with businesses, it's not just the founder you interact with; there’s also the influence you have over the employees of that business. So your impact is amplified.”

Back then, small and medium enterprises (SME) did not get the attention and support they deserved from banks and other large financial institutions, she pointed out.

Supporting SMEs Part of her job involves working with government agencies, industry partners, and key business leaders to equip SMEs with the knowledge, capabilities, and finances to run their operations sustainably.

“SMEs form a huge part of the Scope 3 emissions of large corporations,” Ng said, referring to greenhouse gas emissions that occur indirectly as a result of a company's business activities. “But a lot of SMEs do not have the means to even consider what to do regarding sustainability.”

She said OCBC was one of the first banks in Singapore to offer these businesses sustainability tools, as well as knowledge and “green” loans to help them make good purchasing and investment decisions for both themselves and the environment.

She also noted the increased interconnectivity of the banking industry. Ng said embedded finance has drastically changed when, where and how people interact with financial services, noting that nobody walks to a branch anymore just to open a bank account.

“People are looking for banking services to embed in their buy, sell, and operation platforms. This is something that is going to shape the banking industry quite significantly,” she added.

OCBC works with several third-party platforms that cater to the business transaction needs of SMEs. By tapping on the transaction data on the e-invoices on these platforms to assess the SMEs’ credit quality, the SMEs need not submit bank statements or financial reports.

OCBC is able to extend same-day digital invoice financing approval to ensure the SMEs are able to access funds to ease their cash flow easily. Loan disbursement and settlement is automated by using OCBC’s Application Programming Interface (API).

The setup addresses the ever-present dilemma of SME suppliers wanting to get paid as fast as possible to meet their cash flow needs in a simplified manner, avoiding disputes and strained relationships with their customers, she said.

24 ASIAN BANKING & FINANCE | Q2 2025

SMEs form a huge part of the Scope 3 emissions of large corporations, but a lot of SMEs do not have the means to even consider what to do regarding sustainability

Supporting women Ng credits her success to the people around her and the support system within OCBC, which has several programmes to help build up women leaders.

One of these is the W Suite, which trains senior executives and helps them develop leadership skill sets so they can act as positive role models for other women bankers, Ng said.

OCBC also has flexible work arrangements that allows better work-life balance for parents.

Ng recalled how management approved her request to start and end her work an hour earlier back in 2012 so she could pick her newborn from childcare before the rush hour. Now, at its head office at OCBC Centre, OCBC provides lactation rooms to employees who are nursing mothers and even offers on-site childcare in the form of The Little Skool-House childcare centre.

This is a critical retention tool for many employees, especially mothers, Ng said. “You have the comfort that your child is nearby and is being taken care of.”

Ng does not think women in the banking industry still suffer from misconceptions, noting that there is an equal share of men and women on the job.

At OCBC, for example, women representation is about 56%. In her leadership team, there is only two men out of nine. “The men are a minority,” she laughed.

On the other hand, age remains an issue in the industry, though this depends largely on the urgency of a project, Ng said. “It shouldn't be because we are looking beyond maternity leaves; we are looking at how the person, whether man or woman, can contribute or is the right fit for the job.”

For customers, OCBC has the Women Unlimited Programme, which as of December 2024 has supported close to 300 women-owned businesses with about $50m in loan commitments, according to Ng. Together with OCBC Indonesia, the programme has supported about 1,600 women-owned businesses with over $500m in loan commitments, she added.

Iris Ng, managing director at OCBC Bank

Be positive All possible

Running for Sustainability Asian Banking & Finance Corporate & Investment Banking Awards 2024 Green Deal of the Year in Taiwan Euromoney Awards for Excellence 2024 Best Bank for ESG in Taiwan The Asset Tripe A Sustainable Finance Awards 2024 Best Social Loan – Financial Institution in India Best Sustainability-Linked/Green Loan in Taiwan Best Sustainability-Linked Loan – Display Technology in Taiwan Best Sustainability-Linked Loan – Leasing in Vietnam

Leader in ESG Financings in Taiwan Provided the first Sustainability-Linked Loan Arranged the first Syndicated Green Loan Completed the first Supply-Chain Sustainability Finance Program

ASIAN BANKING & FINANCE | Q2 2025 25

INTERVIEW

Work-life balance gives women room to lead UOB's digital head Choo Wan Sim also highlighted the importance of mentors.

SINGAPORE

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nsuring that workers can balance their careers and family is the best support that banks can offer to advance women’s careers, according to a senior banker from United Overseas Bank Ltd. (UOB).

“Women play multifaceted roles — a wife, a mother, a daughter, a sister, a BFF,” Choo Wan Sim, head at UOB TMRW Digital, told Asian Banking & Finance in an exclusive interview. “They take the responsibility in doing everything themselves and want to do everything well.”

There are various work setups at the Singapore-based bank, such as flexible and staggered working hours. An employee could enjoy up to two hours off during a workday each month without having to apply for a leave, and two shorter Friday working hours, she said.

“With three boys and not wanting to miss any of their important milestones, such flexibility allows me to be able to extract myself from work, attend to the children, but thereafter, immediately go back to complete what I have to do,” Choo told the magazine.

Women mentors She credits such supportive measures and the presence of women mentors for getting her to land at the top of UOB’s mobile banking arm.

These, along with a dose of what she calls “coincidences,” led her to the path of becoming a banker, said Choo, who used to be a flight attendant.

“I wanted to see the world,” she said of her first career choice. “I wanted to experience life. What I did not know I will learn is humility. Those few years actually taught me a lot about humility and the values that have stayed with me since then," she added.

“After three years, I knew that it was time to pay back my parents for the education that they have given me, and it was actually a female leader who gave me the opportunity to join the insurance industry,” she said.

After three more years, her mentor moved to the banking industry, and Choo followed her.

She has since worked in the payment, credit card, and unsecured loan segment of the banking industry. After 10 years, she applied to become the head of UOB’s mobile-only banking arm. “I thought, why not give it a shot?”

She now looks after UOB’s digital business in Singapore and the region, helping it expand the franchise and move offline transactions online, effectively making banking for customers more convenient. Her role also includes helping the bank with its digitisation projects and engaging with customers to be more digitally enabled.

Her most recent pet project was the rebranding of UOB’s multi-currency product to FX+ from Mighty FX . Choo had to work with various teams from credit cards, wealth, and Treasury to expand the perks under the debit card.

Choo is confident that the product, which promises no foreign exchange fees when spending worldwide, nomarkup and transparent rates for eleven currencies, and cashback for overseas withdrawals can compete with similar fintech products.

26 ASIAN BANKING & FINANCE | Q2 2025

Choo Wan Sim, head at UOB TMRW Digital

Women play multifaceted roles; they take responsibility in doing everything themselves and want to do everything well

Correcting stereotypes On becoming the head of UOB TMRW Digital, Choo said that she was thankful that they did not stereotype the fact that she was a woman in giving her a digital role. However, she recognised that many still have to contend with stereotypes about the roles and strengths of women.

“This misconception sometimes starts as early as education — ‘the boys are stronger in math and science, the girls are stronger in languages and humanities,’” she said.

Choo said the industry has been making significant strides to correct such stereotypes through diverse and inclusive initiatives as well as mentorship programmes.

“The good thing about it is there are also successful women making very significant strides in the leadership roles in the [banking and tech] industries,” she said.

“The awareness and importance of gender diversification is also growing," she added.

It always goes back to the basic fundamentals, which is about training and awareness, she said.

“How we showcase [and] highlight role models, for example. Also showing that banks are not just about technology. You see, a lot of banks nowadays are even talking about customer centricity— putting the customer in the center of everything we do, being empathetic of what they feel, what they experience in their banking journey,” Choo told Asian Banking & Finance.

ASIAN BANKING & FINANCE | Q2 2025 27

INTERVIEW

Ivy Chan keeps BEA steady in riskheavy year

She sees her role as the glue linking BEA’s risk team, board, and key regulators.

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HONG KONG

he Bank of East Asia’s (BEA) Ivy Chan has her work in risk management cut out for her this year: most recently, there's US President Donald Trump doubling down on tariffs in an escalating global trade war. Chan's job is to assess which clients will be most affected — and who might benefit.

“We need to immediately analyse our own portfolio and apply risk mitigation to prevent the bank from being hurt as a result of the impact on our customers,” the Hong Kong lender’s group chief risk officer told Asian Banking & Finance.

Chan, who leads a team of 180 people who deal with clients in the city and Mainland China, said her biggest concern at the moment is about the effects of the tariff war on clients who export to the US. US President Donald Trump initially announced tariffs on imports from 60 countries. At one point, it levied a 145% rate on Chinese imports. China responded with tariffs of up to 125% on imports from the US. Both sides have since rolled back tariffs — the US to 30% and China to 10%.

“We have to identify those customers that may be impacted, and those who are less so, such as those who already have manufacturing operations in Southeast Asia in addition to China,” Chan said.

Acting as 'glue' Apart from credit and operational risks, the banker handles all nonfinancial risks as well — errors and compliance breaches — for Hong Kong’s biggest independent lender, and one of its few remaining family-run banks.

“For example, operational errors. So if there are frequent operational errors, or any compliance breach, or any internal fraud, I am overall in charge of risk in these,” she explained.

Chan, who has been in risk management for two decades, sees her role as the “glue” because she has to discuss these risks not just with clients but also with BEA’s board and regulators.

“I need to face the regulators, face the board of directors, to explain about the risk profile of this bank, and what we are going to do if the risk is too high at a certain period of time; how we are going to manage it, to remediate these risks,” she told the magazine.

She never saw it as a job with a bias for either men or women. She did think it was more interesting than a career in accounting and taxation after a campus recruitment event thirty-two years ago, she added.

“I never felt that there was any bias in the banking 28 ASIAN BANKING & FINANCE | Q2 2025

We have to identify those customers that may be impacted, and those who are less so

industry nor throughout the years in that bank,” she told Asian Banking & Finance.

She said her male bosses at the time had tried to uplift women bankers, adding that there were no barriers for them to move up in their careers.

“Reflecting back, I think it's really about the person, whether we want to take ownership of our own career, and whether we've got encouragement from our seniors, be it women or men,” she said.

BEA’s employee support includes a phased return to work for mothers on maternity leave.

Employees are also offered a well-being leave— two, 2-hour sessions monthly that will enable employees to step away twice a month. Parents can use this time to bring their children to visit the doctor, for example.

Chan said artificial intelligence (AI) would play a key role in the future of risk management. “Five, six years ago, we rarely thought about using artificial intelligence in banking to help us manage risk,” she said. Today, AI is being used to analyse customer data to streamline the risk management process.

“I would imagine that a lot of changes will happen from now on in the next few years,” she said.

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Ivy Chan, group chief risk officer at Bank of East Asia Hong Kong

ASIAN BANKING & FINANCE | Q2 2025 29

COUNTRY REPORT: INDIA

Wealth managers eye a pie of India’s startup boom The ultra-rich have started looking at small and mid-sized companies.

INDIA

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ndian investors including private creditors are increasingly taking a chance on startups despite global headwinds, betting that they could become the next unicorn or future large cap.

An “entrepreneurship culture” has seized India’s business space, and with it comes investment opportunities through private credit and latestage investments, Nitin Rao, CEO at InCred Wealth & Investment Services Private Limited, told Asian Banking & Finance.

“It’s a very different market now,” Rao, who was head of HDFC Bank’s private banking business before joining the Mumbai-based wealth management company, said in an exclusive interview.

“Earlier, the market was dominated by financial institutions and institutional investors,” he said. “Now, high-net worth and ultra-high net worth segments are looking for private equity opportunities that will give them exposure to small and mid-sized companies.”

People have become more cautious.

They want to participate in the upside, but they also want to be protected from downside

Nitin Rao

India has the third-biggest startup space in the world, with more than 157,000 startup certificates recognised by the Department for Promotion of Industry and Internal Trade as of December 2024.

With more than 100 unicorns, or startups valued at over $1b, investors increasingly want to take part in what Rao calls “entrepreneurship opportunities” that banks normally shun. That is where private debt and private credit come in.

Rising cautiousness Through private credit, investors can get exposed to an e-commerce or new age power generation company, or even an electric vehicle business.

But there are risks, Rao said. He cited rising cautiousness amongst investors as they take in more private equity. Markets in India are also becoming “a little overvalued.” “In India, a little bit of volatility has come into investments because of the stretched valuations.”

India has the third-biggest startup space globally with over 157,000 startup certificates

30 ASIAN BANKING & FINANCE | Q2 2025

This leads to increased take-up of structured investments or products, which link a debt security to the performance of an underlying asset, such as equities, interest rates, commodities or currencies.

At the start of the year, the focus shifted to private debt, Rao said.

“People are looking at reallocating their debt returns,” he said. “People have become more cautious. They want to participate in the upside, but they also want to be protected from downsides, which is where [structured products] are coming up, or vehicles like hedge funds or option strategy-based products.”

Little ESG movement Meanwhile, there has been little movement in the environmental, social, and governance (ESG) space amongst Indian investors. “We don’t see a specific focus and interest in ESG investments in the broader market specifics,” Rao said.

Rich families whose members have gone abroad or whose children have studied overseas are more likely to be interested in ESG investments, according to Rao. Diversification is key for investors seeking to pool their funds, Rao said. He said they should start small, perhaps putting 80% in conventional stocks and the rest in riskier earlystage or late-stage investments.

Rao expects assets under management by the wealth management sector to continue expanding, driven by people investing their savings in financial products like stocks, mutual funds and bonds away from physical assets like gold, property and cash.

“India was a real estate-based investment economy, [but] that shift happened from real estate to equity,” he told the magazine.

Digitalisation will drive wealth management activities and the popularity of nonbank wealth management players like InCred Wealth, Rao said. “Investing has become very easy,” he said, noting how social media has helped spread investing knowledge.

“All these have ensured that a lot of money from various segments — whether its retail investors or high-net worth individuals or the masses — started flowing into equity markets,” he added.

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ASIAN BANKING & FINANCE | Q2 2025 31

COUNTRY REPORT: SINGAPORE

Enhanced bourse appeal may lift Singapore’s investment banking space Efforts to reform the stock market could also benefit wealth management income.

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SINGAPORE

ingapore’s investment banking sector is expected to benefit from state efforts to reform its stock exchange to boost public listings, mergers and acquisitions (M&A), analysts said.

The city-state’s strategic location, expanding consumer market, and cutting-edge tech would continue to lift the sector this year, Elaine Tan, senior manager for deals intelligence in Asia-Pacific at the London Stock Exchange Group (LSEG), told Asian Banking & Finance.

“These elements could drive growth and activity in Singapore’s investment banking sector, albeit with some moderation due to global economic uncertainties,” she said in an exclusive interview.

Increasing investment attraction Government initiatives, including a $3.86b (S$5b) equity market development programme, tax exemptions for fund managers investing in Singapore-listed stocks, and requiring single-family offices to invest in the bourse are likely to lead to more M&As, according to RHB Group.

Investment banking and advisory firms would gain from the increased attraction for entrepreneurial companies to acquire undervalued firms listed on the exchange and inject their own profitable companies into the public entity, RHB analyst Shekhar Jaiswal said in a report in February.

Small listed companies with strong cash flow might also get delisted and relisted on the exchange when their valuation gets higher, he added.

“We see it as a big positive for Singapore equities and believe that this could bring in greater investor interest and broaden investor participation beyond index stocks,” according to Jaswal.

Whilst Singapore’s stock exchange experienced a 6.5% increase in capital proceeds in 2024, volume fell 7%, according to LSEG data.

Tan said a number of Singapore

32 ASIAN BANKING & FINANCE | Q2 2025

Singapore's investment banking fees rose to $660.6m in 2024

This could bring in greater investor interest and broaden investor participation beyond index stocks

Elaine Tan

Shekhar Jaiswal

companies, notably many local issuers, have opted to list on global exchanges including those in the US. “Whilst the local exchanges [in Singapore and Hong Kong] have their own advantages, the US markets offer greater liquidity, a more diverse investor base, and global visibility, making it an attractive choice for companies looking for growth and expansion,” she added.

Growing M&A space Efforts to reform the stock market should be positive for banks’ wealth management income as well, Jaiswal said in the report.

Last year, Singapore’s investment banking fees rose 14% to $660.6m (S$884.8m) from a year earlier, in the report. from a year earlier, spurred by increased M&As and bucking a downtrend in the Asia-Pacific region, based on LSEG data. It ranked sixth overall, excluding Japan.

Its mergers & acquisitions space grew the fastest at 41% to $82m (S$109.8m). China, South Korea, and Hong Kong all posted declining investment banking fees.

“The real estate, financials, and material sectors collectively captured 49% of the market share in terms of deal value,” Tan said.

The high-tech sector ranked first in terms of deal volume, reflecting a strong focus on technological advancements and expanding digital capabilities, she added.

However, the measures do not address the issue of rising delistings in the SGX compared to the number of companies going public.

The SGX saw 17 delistings in 2024, compared with just 4 initial public offerings (IPOs). In 2025, the list of potential delistings already stands at 5 as of February.

“Most companies looking to delist cite poor trading liquidity as one of the reasons for going private. Whilst the announced measures should support improved trading liquidity, as discussed above, we believe that before the liquidity hits the market, there may be an increased attraction for entrepreneurs to privatise small companies with strong cash flow now,” Jaiswal said.

ASIAN BANKING & FINANCE | Q2 2025 33

COUNTRY REPORT: PHILIPPINES The payment has to work with the system of both jurisdictions and its participants, which include the banks and non-bank electronic money issuers, amongst others.

Project Nexus Phase 4 launch and signing ceremony (Photo from BSP)

PH central bank gears up for instant cross-border transfers Monetary authorities in Asia are about to bring Project Nexus to market.

PHILIPPINES

T

he Philippines is working with Malaysia and Japan to link their instant payment systems for merchants, though the ultimate goal is to go beyond bilateral ties in favour of a multilateral approach, a senior central bank official said.

“We envisage that our merchants here can accept payments from Malaysian tourists or residents here in the Philippines, and vice versa,” Mamerto Tangonan, deputy governor of the Bangko Sentral ng Pilipinas (BSP), told Asian Banking & Finance in an interview.

Tangonan, who is also head of payments and currency management at the BSP, said the Philippines is more than ready for instant cross-border payments and transactions.

“We have an instant payment system existing as far back as 2018,” he said. “All we need to do here, technology wise, is just to connect it with other payment systems via a hub.”

Once successful, a central bank like the BSP only needs to connect its payment system to a single network 34 ASIAN BANKING & FINANCE | Q2 2025

We envisage that our merchants here can accept payments from Malaysian tourists or residents here in the Philippines, and vice versa

Mamerto Tangonan

and have access to many jurisdictions.

This, however, is a bit tricky due to differences in each country’s antimoney laundering rules, he told Asian Banking & Finance.

Anti-money laundering efforts Paris-based Financial Action Task Force in February removed the Philippines from its list of jurisdictions under increased monitoring for “dirty money” risks, citing progress in state efforts against money laundering and terrorist financing.

The country had been on the gray list since June 2021. Tangonan said harmonising anti-money laundering rules requires a good amount of work, including making sure that every transaction is not tainted.

“A transaction has to satisfy the AML regulations of both the sender and the recipient receiving jurisdictions. So how to harmonise that? It takes a good amount of work."

The commercial aspects of the payment itself has to be addressed— from settlement and fee arrangements, for example.

Project Nexus The introduction of ISO 20022 — the standard for electronic data exchange between banks globally — has somewhat eased this challenge.

The Philippines is also part of Project Nexus, a Bank for International Settlements (BIS) Innovation Hub initiative that seeks to standardise the way instant payment systems connect to each other.

The project aims to enhance cross-border payments by connecting multiple domestic instant payment systems globally for faster, cheaper, and more accessible international transactions.

Tangonan said several central banks in Asia including Singapore, Thailand, Malaysia, India and the Philippines are in the final stage of developing and bringing Project Nexus to market.

Tangonan is optimistic that Nexus will also benefit rural banks and nonbank e-money issuers, whose clients include families of overseas Filipino workers who regularly send money home.

“It broadens the access to crossborder payments,” he said. “You will now have, let’s say, beneficiaries of overseas Filipinos receiving their remittances directly to their account even if it’s a rural bank, at a very low cost, very high speed, and very transparent way.”

By 2027, a Filipino can travel to Singapore and pay by just scanning Singapore’s PayNow QR Code, according to Tangonan.

“You can have your laksa from a hawker centre. For tourists going to Boracay, they can buy taho (sweet silken tofu pudding) by just scanning the PH QR code of the taho vendor.”

He said cross-border payment costs under Project Nexus would be “way below” the rates endorsed by G20 nations. Payments will be credited in less than five minutes, he added.

In October 2024, the G20 released a roadmap for enhancing cross-border payments that pushes for costs to be under 3%, he added.

Project Nexus aims to enable cross-border payments in as fast as 60 seconds in most cases.

ASIAN BANKING & FINANCE | Q2 2025 35

EVENT NEWS: ASIAN BANKING & FINANCE SUMMIT - THAILAND

Thai digital banks urged to rethink playbook They should acquire customers from the get-go with profit in mind.

Kearney partner Kevin Kwek led a panel discussion on sustaining growth in digital banking

THAILAND

D

igital banks in Thailand should ditch the traditional “acquire now, make money later” if they want to start making money soon, according to analysts, in a market where only a fifth of about four-dozen so-called neobanks in Asia are profitable.

They should acquire customers profitably from the get-go instead of luring them with deals, Chalee Asavathiratham, president at Singapore-based fintech group Lightnet Group, told the Asian Banking & Finance and Insurance Asia Summit in Thailand in February.

“Digital banks are a hard business,” he said, noting that only nine of 45 banks in the region are making money. Less than 5% of the more than 400 standalone digital banks worldwide are profitable, according to Simon-Kucher & Partners.

“If you follow the traditional playbook of platform business — acquire first then figure out how to turn a profit later — that was usually 36 ASIAN BANKING & FINANCE | Q2 2025

The problem that we are seeing in Thailand is structural — people rely on informal lending and loan sharks

true 10 years ago, but right now it’s a money-losing game,” Asavathiratham said in the summit.

“Think from day one how to acquire customers profitably,” he said.

“How do you produce products that will generate a positive cash flow as soon as possible?”

Hong Kong-based WeLab is one of the groups vying for a digital bank licence in Thailand, whose central bank is set to issue three virtual bank licences in mid-2025. The group broke even late last year.

Risk management Managing costs is another factor that successful digital banks in the region have in common, according to Dalad Tantiprasongchai, chief operating officer and international business officer at SCB X. “The other is the customer experience, the value proposition that you bring to the market,” she told the summit. “It's all about risk management, both across credit

risk management and end-to-end risk management across the virtual banking engine as a whole.”

SCB X is part of another group consortium vying for a digital bank licence in Thailand.

Dalad said technological expertise is important, adding that virtual banks should be clear about how their products could add value.

“Everyone that has a mobile phone probably has all the banking apps already,” said Ittiphan Jearkjirm, executive vice president of digital business at Gulf Edge Co. Ltd. “And I believe that they have more than one," he continued.

Challenges for digital banks Panel members led by moderator Kevin Kwek, a partner and head of Financial Institutions Group for Southeast Asia at consulting firm Kearney, agreed that one of the biggest challenges digital banks are facing now is sustaining growth.

They also said the market would have to look at Thailand's approach to digital banking differently; it won’t be about giving deals.

“I don't think I will ever target you as a potential customer in the digital bank that we're going to build,” Asavathiratham told Kwek, who had noted that mobile-savvy, banked customers do not end becoming loyal customers once a deal or promotion has ended.

“The virtual banks that we're creating are meant for the underserved,” he said. “We’re talking about the people who don’t have an easy time accessing credit from the banks," the president continued.

“These are the people who are probably going out of informal sources of funding — loan sharks, or some other means. These are the people who do not even want to put their money in the bank,” Asavathiratham added.

Dalad said it is easy to grow one’s loan book very quickly “but it is hard to do that in a sustainable or profitable way.”

“The problem that we are seeing in Thailand is structural — people rely on informal lending and loan sharks,” she said. “This is something that we as a consortium and my colleagues here want to solve collectively as participants of the virtual banking game," she added.

ASIAN BANKING & FINANCE | Q2 2025 37

EVENT NEWS: ASIAN BANKING & FINANCE SUMMIT - PH

PH banks and insurers called to pursue human-centred AI adoption AI adoption should be centered on financial inclusion, customer experience, and personalisation.

P

PHILIPPINES

hilippine banks and insurers must not lose sight of the human side of their businesses as they digitise, especially in adopting artificial intelligence (AI), market experts and senior financial executives told morning attendees of the Asian Banking & Finance and Insurance Asia Summit 2025 - Philippines.

Central banker Melchor Plabasan kicked off the summit with a discussion of the state of AI regulation in the Philippines.

The Bangko Sentral ng Pilipinas (BSP) is currently gearing up to roll-out a regulation that will cover untouched areas in AI regulation.

These include ethical use, managing bias, and improving its accuracy, said Plabasan, who is senior director for the BSP’s Technology Risk and Innovation Supervision Department (TRISD).

“Based on the results of our thematic review, the financial sector is generally ready when it comes to joining the AI revolution, when it comes to equipping themselves with the right risk management tools,” Plabasan told attendees at the Makati Shangri-La Hotel in Manila, 11 March.

Policy changes Even before the roll-out of the regulation, the Philippines already had five regulations and roadmaps and not less than eight house bills that relate to responsible AI use.

UnionBank of the Philippines’s (UBP) Chief Transformation Officer Dennis Omila followed with a fireside chat, where he discussed their digital transformation journey and their AI adoption process.

Omila highlighted the importance of having a platform to explore AI use cases before it is rolled out at large.

“If you have a platform, you can keep experimenting and not worry about whether this experiment will fly. It will be good to create those platforms, you can experiment in a cost effective or faster way,” Omila said.

Having the right strategic direction in exploring AI is also a must, which involves navigating changing 38 ASIAN BANKING & FINANCE | Q2 2025

Melchor Plabasan, senior director for technology risk and innovation supervision, Bangko Sentral ng Pilipinas

The financial sector is generally ready when it comes to joining the AI revolution, when it comes to equipping themselves with the right risk management tools

regulatory priorities, said Christian Lauron, Financial Services Leader and Partner, SGV & Co. (EY Philippines).

“I had a few conversations with some of the strategists and corporate planners. And we have come to the conclusion that there has to be some agility embedded in the planning process,” Lauron said.

One of the most important applications of AI is on reimagining customer experience management, said Clement Quek, APAC Digital Strategist, Adobe.

Customers now expect companies to come at them proactively with personalised suggestions, Quek said. “[Financial institutions] recognise that there is an opportunity to serve their customers better with personalised services, to improve their financial health and well-being,” he told the summit attendees.

Financial inclusion has grown but remains a challenge for Filipinos. Most locals remain underinsured, and the share of mobile penetration is still higher than the share of those who are banked, according to Sari Mortel, head of payments for Philippines in J.P. Morgan; and Noel Tordesillas, head of e-channel, business channels, Etiqa, both speaking at the summit’s

first panel discussion. This shows massive potential for growth in both the banking and insurance sectors, according to the experts.

But don’t think digital will be the end-all answer.

“At the end of the day, digital technology is not the end all and be all, it’s just the enabler. Digital will not solve the problem,” said Lito Villanueva, executive vice president, chief innovation and inclusion officer, digital enterprise and innovations group head at RCBC, who joined Mortel and Tordesillas in the same panel.

RCBC, for example, has the First Kapitbahay ATM. Under this service, the bank engaged with sarisari stores and small businesses to reach rural areas.

Having better infrastructure in the rural areas will make the difference not just in financial inclusion but education, said Dr. Adrienne Heinrich, AI Center of Excellence Head, UnionBank of the Philippines.

This is where partnerships can make a big difference, with Heinrich noting the unique culture of SMEs in the Philippines offering “specialised” solutions to different groups of customers.

ASIAN BANKING & FINANCE | Q2 2025 39

EVENT NEWS: ASIAN BANKING & FINANCE SUMMIT - MALAYSIA

How embedded finance and AI are reshaping Malaysia’s finance sector Value migration to non-bank players with a "focused" model is accelerating.

MALAYSIA

D

igital innovation, embedded finance, artificial intelligence (AI), and personalisation are amongst factors that will shape Malaysia’s finance and insurance industry in the near future, market leaders and experts told attendees of the Asian Banking & Finance and Insurance Asia Summit - Malaysia 2025.

Mohd Prasad Hanif, secretary general of the Association of Development Finance Institutions Malaysia (ADFIM), kicked off the summit with a discussion on the key roles of Development Financial Institutions (DFIs) amidst a turbulent economic climate.

DFIs are specialised financial institutions established by the Malaysian government to develop and promote key sectors considered strategically important to the socioeconomic development objectives of the country. These include small and medium enterprises (SMEs) and the agriculture industries, amongst others.

“Most private commercial entities will be reluctant to lend out [to these sectors], and this is where DFIs step in,” Hanif said.

DFIs are expected to serve this countercyclical role— that they would lend out to riskier segments at times of economic downturns, whereas traditional banks are expected to turn more defensive.

Value migration Isaac Tan, partner at the Boston Consulting Group (BCG), followed with a discussion on the financial services of the next decade.

Tan noted that large parts of capital held in the banking industry remained undervalued. Whilst banks’ valuations all rose on average have increased over the past few years, the gap between leaders and laggards have also widened, he said.

Tan said that value migration to non-bank financial players with a “focused” model— meaning they specialise in only one or two services,

40 ASIAN BANKING & FINANCE | Q2 2025

Transformation should not just be concentrated in a small group of people, but the whole group, so that no-one is left behind

such as payments, wealth and asset management— are set to accelerate.

Banks are increasingly taking note of this. For example, in the Asia Pacific region, banks have entering the private credit market.

“They participate through joint ventures, partnerships,” Tan said, adding that banks are participating as investors and not necessarily as service providers.

Hanif and Tan’s opening sessions were followed by a panel discussion on direct disruptors to the banking industry: digital banking. Moderator Ravi Kittane, a partner for Ernst & Young in Malaysia, joined representatives from GXBank, Boost Bank, Aeon Bank, and Ryt Bank to discuss the innovations brought by digital banks in Malaysia.

All four digital bank representatives said that they hope to give constant value to Malaysian banking customers.

Having the ability to innovate new propositions in the market is one value that digital banks give to their customers, said Fozia Amanulla, CEO of Boost Bank. Amanulla was joined by Pei Si Lai, CEO and managing director of GXBank; Aizuddin Danian Izham Cheong,

chief personal banking officer for AEON Bank; and Melvin Ooi, chief executive officer of Ryt Bank.

In an afternoon session, Maybank’s Dr. Chan-Cheong Siew, group chief strategy and transformation officer, shared the bank’s digital transformation journey over the past three years to the attendees.

Malaysia’s biggest bank by assets questioned how they can drive shareholder value and return of assets (ROE) in the changing world— one that is volatile and digital-focused.

“The whole idea is, how do we become from good to great in the next three years?” Chan told the summit attendees.

The answer, Chan said, lies in ensuring that their transformation is group-wide and not just aimed at servicing a select group of customers.

“Transformation should not just be concentrated in a small group of people, but the whole group, so that no-one is left behind.”

The outcome saw Maybank’s income and market share rise, he said. “In Year 1, we exceeded our target by 80%, then by year 2, we exceeded our target by 117% accumulative,” Chan said.

Dr. Chan-Cheong Siew, group chief strategy and transformation officer, Maybank

ASIAN BANKING & FINANCE | Q2 2025 41

CASE STUDY: CROSS-BORDER PAYMENT

HSBC streamlines Philips’ foreign exchange flows in China ‘Netting’ cut Philips’ cross-border transactions from 4,000 yearly to just one a month.

CHINA

H

SBC has launched a cross-currency netting solution in China that helped electronics giant Philips reduce thousands of cross-border transactions into a single renminbi (RMB) deal.

Using HSBC's pioneering Treasury solution, the Dutch multinational company managed to cut the number of its intra-group cross-border transactions from 4,000 annually across seven currencies into a single RMB transaction each month, according to the London-based lender's statement.

The cross-currency netting solution is only the latest in “a long line of innovative solutions” that the British lender will offer in China, Yvonne Yiu, HSBC Asia-Pacific co-head of global payment solutions, told Asian Banking & Finance.

“In the past, we’ve launched ECom Direct, which allows merchants on the mainland to collect RMBdenominated sales receivables directly from overseas e-commerce platforms,” she said. “We are also

Multi-national companies need centralised and optimised Treasury procedures in Mainland China to thrive

Yvonne Yiu

HSBC launched zero-fee international transfers in Singapore in 2024

42 ASIAN BANKING & FINANCE | Q2 2025

amongst the first banks in China to offer both wholesale and retail eCNY services.”

E-CNY is a digital legal tender issued by the People's Bank of China (PBoC), China's central bank, that is stored on a digital wallet.

Before HSBC’s Treasury solution, Philips had to manually process cross-border payments, costing time and money from its mainland and overseas operations, HSBC said.

Currency netting, where a company offsets multiple payments due in different currencies between two or more parties — calculating a single net amount that needs to be paid — effectively cuts costs in foreign exchange conversions.

Without the HSBC solution, Philips’ nine mainland Chinese entities, including 17 business units, could not be integrated into the global netting structure.

HSBC and Philips got the consent of the PBoC to roll out the netting solution, making use of Philips’ existing cross-border cash pool set up under the Chinese central bank’s free

trade enterprise structure.

This year, HSBC and Philips have begun converting into renminbi the intra-group cross-border foreign currency payments and receipts of Philips entities in Mainland China.

The conversion will use the Philips in-house bank’s exchange rate to calculate the company’s renminbi netting settlement.

Only one cross-border settlement will then have to take place between Philips' domestic netting centre and another one overseas. Each company or division settles a single netting transaction in renminbi with the domestic netting centre.

According to Yiu, multinational companies need “centralised and optimised” Treasury processes in Mainland China to thrive.

Other services Last year, HSBC launched zero-fee international transfers for retail customers in Singapore. It also claims to be the first foreign bank in Mainland China to offer an omnicollect cash management solution service that operates across all major digital channels.

Its latest treasury enhancement is the Tokenised Deposit Service.

Launched in Hong Kong on May 2025, it is a blockchain based settlement service that will support real-time payments in the Hong Kong and US dollar.

The service reportedly supports settlement requirements for tokenisation use cases, including those that are being explored under the Hong Kong Monetary Authority’s Project Ensemble.

“Tokenised deposits, when supported by regulated financial institutions, can offer a safe and fully compliant approach to improving payments and cash management for corporates,” according to Lewis Sun, global head of domestic and emerging payments for Global Payments Solutions.

ASIAN BANKING & FINANCE | Q2 2025 43

CASE STUDY: BANCASSURANCE

Prudential, StanChart cement 25 years of bancassurance tie-up They have the longest-running bancassurance partnership in Singapore and Asia.

HONG KONG

P

rudential and Standard Chartered's long-standing bancassurance partnership has averaged “double-digit” sales growth in the past 15 years, thanks to product innovation by their health and wealth segments.

The companies entered their 25th year of bancassurance partnership in 2024, the longest in Asia.

“Through geographical expansion, continuous enhancement of our wealth and health offerings, and the optimisation of technology-powered omni-customer journeys, we have deepened our market penetration across all customer segments, from affluent to personal mass,” John Chow, chief partnership distribution officer at Prudential Singapore, told Asian Banking & Finance.

“Today, this strategic bancassurance partnership spans 11 markets in Asia and Africa, and has averaged double-digit sales growth rate over the past 15 years,” he said in an exclusive interview.

Affluent people in Singapore and Hong Kong prioritise financial freedom but their perspectives differ, according to a 2024 study by Affluential released in September.

In Hong Kong, high-net-worth people largely focus on securing a

Navigating evolving regulatory challenges and staying ahead of market competition will be crucial for maintaining successful long-term partnerships

John Chow

The partnership spans 11 markets in Asia and Africa

44 ASIAN BANKING & FINANCE | Q2 2025

comfortable retirement in the face of uncertainties, whilst Singapore’s wealthy adopt a more optimistic outlook, prioritising a comfortable lifestyle, the report read.

“Customers today expect personalised, convenient, and seamless experiences, and both companies have collaborated to respond and adapt to them,” Chow said.

“Bancassurance continues to be a major distribution channel for insurers. We continue to feel positive about the future of bancassurance, with various opportunities for growth and innovation,” he added.

The tie-up between Prudential and Standard Chartered is the longestrunning bancassurance partnership in Singapore and across Asia.

“Navigating evolving regulatory challenges and staying ahead of market competition will be crucial for maintaining successful long-term partnerships,” Chow said.

The insurer’s new business profit from bancassurance rose 20% to $465m in the first half of 2024 from a year earlier, driven by annual premium equivalent sales growth in Taiwan, Hong Kong, and Singapore.

Sales through the bancassurance channel increased 27%.

“In the past decade, as affluence

levels increased, we have also pivoted to meet widening clients’ needs,” Jeremy Ong, head of bancassurance for Singapore at Standard Chartered Bank, said in a separate interview.

Significant opportunities Apart from savings and protection plans, legacy planning solutions were added to the bank for clients looking to pass on wealth.

In 2023, StanChart launched two US dollar-denominated insurance products, whose volume doubled in 2024 from a year earlier and now contribute to 30% of its sales, Ong told the magazine.

The bank-insurer tandem also provides medical insurance to their employees.

“We switched our medical insurance benefits provider to Prudential in April 2024 to provide employees with broader options in their insurance benefits, including comprehensive general practitioner care, specialist care and annual health screenings,” Ong said.

He added that the bank plans to conduct an annual survey starting this year to monitor service quality and satisfaction from the tie-up.

Both Prudential and StanChart expect significant opportunities for bancassurance growth, tech advancements and a stronger focus on customer needs.

“We will continue to work collaboratively with industry partners and authorities to drive the bancassurance industry forward and better serve customer needs,” Chow told Asian Banking & Finance.

He said artificial intelligence (AI) could help them design more highly-personalised products.

“For example, automated underwriting, digital claims processing and AI-driven customer insights, seamless digital interactions and more will help to streamline and enhance customer experience and engagement,” he added.

For 31 years, we have been on a journey to realise our vision, ‘Change Banking, Change Lives’ and uplift everyone to reach their full potential

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techcombank.com ASIAN BANKING & FINANCE | Q2 2025 45

OPINION

IVAN TAN AND SUE ONG Why high capital levels are a doubleedged sword for Singapore banks

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ingaporean banks are finding themselves at a crossroads, having to navigate the complexities of capital management in the wake of the Basel reforms. As financial institutions in Singapore recently reported significant increases in their capital adequacy ratios—up to 200 basis points—following the adoption of these reforms, the implications for future growth and stability are profound.

Whilst these high capital levels bolster the banks’ resilience, they also present a challenge: how to effectively utilise this capital to foster growth and expansion.

The Basel reforms, which came into effect in July 2024 and would be complete by July this year, have set the stage for a gradual erosion of these capital uplifts.

Over the next five years, Singapore banks will phase in capital output floors that will ultimately lead to a reversion of common equity Tier 1 (CET1) capital adequacy ratios to approximately 15% by 2029.

Currently, the average CET1 ratio stands at an impressive 16.5%, which is nearly double the minimum requirement of 9.0% and above the long-term projected target of 13%-14%.

The importance of capital management cannot be overstated. A spike in regulatory capital followed by a decline opens avenues for active capital management strategies. Stakeholders are likely to pressure banks to deploy their excess capital more effectively, which could manifest in several ways.

One immediate avenue that banks can take is the acceleration of new loan growth. By increasing riskweighted assets through lending, banks can utilise their regulatory capital more efficiently.

IVAN TAN Director S&P Global Ratings SUE ONG Senior Analyst S&P Global Ratings

Projected expansion The banking sector in Singapore has shown signs of expansion, with loan growth rising to approximately 5% in 2024, a stark contrast to the -3% contraction of the previous year. Projections for 2025 and 2026 suggest that loan growth could reach between 5% and 8%, further enabling banks in the country to manage their capital more dynamically.

However, whilst the prospect of increased lending is attractive, it is essential to recognise the inherent risks.

Banks are inherently sensitive to market confidence, and maintaining robust capital buffers is crucial for ensuring financial stability.

High capital levels not only provide assurance to stakeholders but also enhance access to low-cost funding, and a high proportion of sticky customer deposits, even across economic cycles.

As such, the banks need to strike a right balance between optimising capital efficiency and maintaining sufficient financial buffers.

46 ASIAN BANKING & FINANCE | Q2 2025

In response to their elevated capital levels, Singapore banks have initiated capital distribution plans aimed at paring back excess capital over the next two to three years. These plans include periodic share buybacks and special dividends, allowing banks to return capital to shareholders whilst remaining vigilant about loan growth and emerging opportunities.

If loan growth continues to rise, banks may scale back or halt capital distributions altogether. This course of action ensures that they have the necessary resources to support their lending activities.

Looking beyond domestic growth, Singapore banks are also eyeing opportunities for overseas expansion.

With a war chest of capital at their disposal, these institutions are well-equipped to pursue strategic acquisitions that enhance their regional footprint.

Recent acquisitions, such as Oversea-Chinese Banking Corp. Ltd.’s purchase of PT Bank Commonwealth, exemplify this trend. However, it is crucial to note that such acquisitions will be approached opportunistically, with banks prioritising strategic fit and pricing over mere expansion for its own sake.

Ultimately, the goal for Singapore banks is to navigate this capital transition prudently. By the end of the fiveyear period, we believe that their fully phased-in CET1 capital ratio will revert to historical norms of around 15%. This transition will not only reflect effective capital management but also ensure that these banks remain competitive and resilient in an increasingly complex financial landscape.

OCBC purchased Indonesia's PT Bank Commonwealth in 2024

2

ADVERTORIAL

BTN Wins Award at ABF Wholesale Banking Awards 2024

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T Bank Tabungan Negara (Persero) Tbk (BTN) won an award at the Asian Banking & Finance (ABF) Wholesale Banking Awards 2024 on Thursday, July 4, 2024. BTN received the award in the Indonesia Domestic Technology & Operations Bank of the Year category.

“We highly appreciate the recognition given by Asian Banking & Finance (ABF).

This award motivates us to continue our efforts towards improvement and progress,” said BTN President Director Nixon LP Napitupulu in a written statement on Thursday, July 4, 2024.

According to Nixon, this award is a testament to the successful achievement of BTN’s structured and well-planned digital transformation milestones. BTN, as a company in the financial services sector, ensures that the continuity between information technology and company operations is the result of collaboration, coordination, and teamwork from all parties within the company, as well as support from all customers and users of BTN’s

financial services.

BTN Information Technology Director Andi Nirwoto added that the award from the ABF Wholesale Banking Awards 2024 was due to the company’s consistent emphasis on the use of information technology to provide reliable and trustworthy banking services. The orchestration of information technology in all aspects of the company’s operations, from customer service to efficiency in business transaction processing, drives BTN to continuously improve and enhance its capabilities in delivering the best information technology services in Indonesia.

“The award from the ABF Wholesale Banking Awards 2024 as Indonesia Domestic Technology & Operations Bank

of the Year is a testament to BTN’s success in realizing its vision to be the best bank in information technology services in Indonesia,” Andi said after receiving the ABF Wholesale Banking Awards 2024 in Singapore.

He expressed that the recognition in technology and operations capability demonstrates BTN’s ability to run banking services efficiently and effectively. The ability to achieve a balance between information technology and operations showcases BTN’s maturity in technology development, ensuring data security, resilience, and innovation aspects are well managed. “Being a leading bank in information technology implementation, especially in Indonesia, is an integral part of BTN’s vision and is inseparable from every step the bank takes,” he said.

Furthermore, Andi emphasized that the key to BTN receiving this award is the implementation of continuous innovation.

Innovation is the foundation that has made BTN the leading bank in information technology services in Indonesia.

Innovation is applied across all layers of business, technology, and operations.

Currently, BTN is focusing on adopting emerging technologies such as Artificial Intelligence to enhance smarter, faster, more efficient, and customer-oriented services. “BTN is committed to becoming a leading player in the adoption of banking technology in Indonesia,” he explained.

To implement a reliable information technology (IT) system, BTN has allocated around 8% for IT innovation implementation, which includes enhancements and developments in IT innovation covering Artificial Intelligence, Blockchain, Cloud Computing, Open API, and Machine Learning. “BTN is investing in IT innovation not only within BTN but also within the BTN digital ecosystem, with the goal of accelerating technology not only at BTN but also in the financial services sector in Indonesia,” Andi concluded. l

The award from the ABF Wholesale Banking Awards 2024 as Indonesia Domestic Technology & Operations Bank of the Year is a testament to BTN’s success in realizing its vision to be the best bank in information technology services in Indonesia.

ASIAN BANKING & FINANCE | Q2 2025 47

OPINION

KOTANKO,KAUSHIK AND SENGUPTA

WealthTech vs. Banks: The battle for Asia’s $700b digital wealth opportunity

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BERNHARD KOTANKO Senior Partner McKinsey & Company Hong Kong VISHAL KAUSHIK Senior Partner McKinsey & Company Singapore JOYDEEP SENGUPTA Associate Partner McKinsey & Company Singapore

ealth in Asia is undergoing a seismic shift.

According to a McKinsey analysis, ultrahigh-net-worth and high-net-worth families are set to experience an intergenerational wealth transfer estimated at $5.8t between 2023 and 2030. It is expected that $700b of personal financial assets (PFAs) will flow into WealthTechs as customers increasingly seek digital platforms to help manage their wealth - and this could be happening at a faster rate than previously expected.

There has been a proliferation of WealthTechs in the region whilst over 70 WealthTechs in APAC raised funds at seed or pre-seed stage since 2023.

To meet this demand, there has been a burgeoning of new WealthTech companies in the region. This presents a challenge to insurers, banks, and asset managers in APAC. To understand the fast-shifting dynamics, McKinsey conducted a research surveying 1,000 consumers, and had in-depth conversations with industry leaders in Hong Kong and other Asian markets.

The survey uncovered a variety of customer preferences when it comes to digital wealth management: Customer segmentation: As customers become wealthier, affluent and high-net-worth individual (HNWI) segments are playing a bigger role in the digital wealth market, projected at over 75% of the new industry PFA shift expected for the WealthTechs.

Digital adoption: Amongst the respondents, 80% indicated a strong preference for using digital solutions, highlighting advantages like cost savings (59% of customers), increased transparency and control (61%), and tailored investment strategies (57%).

A price-sensitive market: Half of the survey participants expressed a willingness to pay only 10-20% of the fees typically charged by traditional advisory service providers when opting for WealthTech solutions. The majority of these respondents fell within the mass affluent segment and were under the age of 45. Additionally, around 20% of participants viewed digital platform services as on par with traditional bank offerings, considering WealthTechs a cost-effective and trustworthy alternative.

Digital wealth becomes mandate for banks Banks, meanwhile, are recognising that digital capabilities have become an expectation, if not a necessity. Staying out of the space is not an option; digital capabilities are expected, even by resolutely analog consumers. “If you don’t have it, you don’t get the business done,” notes Patricia Quek, head of UBS Global

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Wealth Management Singapore. “You snooze, you lose.”

Building a digital wealth capability is not just a matter of providing a useful app. It is about understanding the customer journey—and being prepared to go along with each client, every step of the way.

As customers look to digital wealth platforms for cost efficiencies, banks may need to start justifying the premium they charge. Banks may need to carefully consider how they price their services to ensure they are delivering value to customers whilst overcoming various obstacles, including banks’ legacy systems, relationship manager-led operating models, and hierarchical structures that can slow down investment in (and the adoption of) digital models.

Most critically, banks need to be on the look-out to losing market share. WealthTech firms have been making inroads into the HNWI segment, traditionally dominated by banks. Michele Ferrario, co-founder and CEO of StashAway, described the company’s strategy: “The core opportunity is to keep building market share with the 30- to 45-year-old professionals, who mainly are mass affluent and affluent.” He further explained how StashAway also has created an offering to serve HNWI customers: “We have launched StashAway Reserve to serve our growing HNWI customer base, offering access to private credit, private equity, venture capital, and angel investing, in addition to our core offering.”

For banks, the rise of WealthTechs represents a new competitive challenge as these innovators make inroads into high-net-worth individual segments and being digitally-native becomes an imperative.

What comes next?

Given this backdrop, the lines between banks and WealthTechs are blurring, creating unique opportunities for collaboration across the wealth continuum.

WealthTech companies are increasingly forming B2B partnerships with traditional financial institutions.

Accessibility, affordability, and innovation have become key hallmarks that define a successful partnership. For instance, banks are redefining the role of relationship managers from sales-focused to digitally enabled advisory-focused, whilst WealthTechs are broadening their reach to serve diverse customer segments, including the HNWI segments.

The banking landscape has been fundamentally transformed with the insurgence of digital wealth. By embracing opportunities and addressing the risks tied to evolving consumer preferences in wealth management.

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