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EDITORIAL

B

anks are taking up aggressive new tactics against scammers, from letting customers lock their own accounts to deploying bot armies.

Commonwealth Bank of Australia, for example, has rolled out 10,000 bots designed to intercept scammers before they reach a customer. Read our exclusive interview with its fraud chief on page 18.

Tim Charlton

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Meanwhile, banks continue to miss a $10t opportunity.

McKinsey revealed that more than half of assets controlled by women remain unchanged, yet most wealth products are still designed around male investor profiles. Unless that changes, wealth managers risk being sidelined by the fastest-growing segment of the market.

Read the whole story on page 7.

Hiring practices in Singapore and Hong Kong reveal another weak spot: outdated recruiting models. Top-tier talent won’t wait through six interview rounds or comply with irrelevant language requirements. Mandarin as a default filter, for instance, is costing Hong Kong banks access to qualified candidates. Pages 22 and 26 detail which banks are growing and which are freezing headcount.

The pressure is also building on the institutional side. With global trade volatility escalating, banks are being pushed to deliver real-time liquidity, credit guarantees, and cross-border cash management at speed. In our conversation with HSBC’s Abishek Chopra and Patrick Zhu, they outline how clients are forcing banks to move faster than their legacy systems can handle. Full story on page 34.

Read on and enjoy!

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

ASIAN BANKING & FINANCE | Q3 2025 1

CONTENTS

22

BANK RANKINGS: SINGAPORE AUTOMATION STALLS HIRING AT SINGAPORE’S TOP BANKS

18 CBA DEPLOYS AI BOT ARMY TO STUDY SCAM ATTACKS

26

BANK RANKINGS: HONG KONG TALENTS SHUN BANKS ON LENGTHY HIRING PROCESSES

FIRST

CASE STUDY

INTERVIEW

06 Private credit moves in as banks retreat 07 Banks miss $10t opportunity by neglecting affluent women 08 Aussie banks roll out locks to block scams 10 Credit strains batter APAC banks

VOX POP 12 How do tokens affect cash management?

FINTECH WATCH 14 Aleta Planet launches payment app for Muslims across Southeast Asia

INTERVIEW

BANK RANKINGS 20 Chinese megabanks cement nation’s economic prowess

FINANCIAL INSIGHTS 30 SWIFT cites high cost of splintered financial world 32 Stablecoins bill brings stricter oversight, opportunity to Hong Kong

SECTOR REPORT 34 Companies seek real-time liquidity management to avert cash-flow crisis 36 Islamic finance grows in nonMuslim markets with demand for ethical investing

16 Citi almost triples wealth transactions after digital platform revamp Published quarterly by Charlton Media Group

Hong Kong: Room 1006, 10th Floor 299 QRC, 287-299 Queen's Singapore: Road Central, Sheung Wan, ASIAN BANKING & Building FINANCE Q3 2025 2 St. ASIAN BANKING AND FINANCE|Hong | MARCH 101 Cecil #17-09 Tong Eng Kong 2019 Singapore 069533 +852 3972 7166

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

38 DCS launches card for cash access on stablecoins 40 OCBC launches AI stock adviser trained on 4,000 global listings

EVENT NEWS 42 Malaysia’s development banks told to plug lending gap for MSMEs 44 Banks rethink messaging for Gen Z’s eight-second attention span

COMMENTARY 46 Young Malaysians, big money mistakes 48 Beyond the code: How mobile banking is weaving a new financial narrative in Asia

For the latest banking news from Asia visit the website

www.asianbankingandfinance.net

ASIAN BANKING & FINANCE | Q3 2025 3

News from asianbankingandfinance.net Daily news from Asia

APPOINTMENTS

SMBC names DBS MD as head of corporate banking for APAC Sumitomo Mitsui Banking Corporation (SMBC) has appointed Joyce Tee as head of the corporate banking department in Asia Pacific.

Beginning 22 May, Tee will lead the Japanese megabank’s corporate banking strategy in the region. She brings three decades of experience working in the banking industry.

LENDING & CREDIT

INVESTMENT BANKING

HSBC cuts dozens of analyst jobs in investment banking HSBC has cut more than two dozen analyst jobs in recent days as part of its restructuring of its investment banking businesses, reports Bloomberg, citing sources familiar with the matter. Amongst those affected is Steven Major, HSBC’s Dubai-based global head of fixed income research.

MEDIA & MARKETING

BANKING TECHNOLOGY

Gen Z spending habits spur banking reinvention Gen Z, the largest generation on earth whose spending power is expected to hit $12t in five years, is forcing traditional banks to reinvent themselves amidst fierce competition from their digital and fintech rivals.

Seven of 10 Asia-Pacific Gen Zers frequently use digital wallets for domestic payments.

RETAIL BANKING

Malaysia fines Maybank Islamic for info submission lapses

DBS CEO Tan Su Shan ranked sixth most powerful woman in business

Union Bank's ‘aggressive’ growth strategy brings more problem loans

Bank Negara Malaysia has fined Maybank Islamic Berhad about $283,000 for non-compliance to the Islamic Financial Services Act 2013 regarding submission of information to regulators. The bank’s failure to ensure info was submitted led to three borrowers’ credit records being impacted.

DBS chief executive officer Tan Su Shan has been named one of the most powerful women in the business world in 2025 by Fortune magazine. Tan, who took over as head of Singapore’s and Southeast Asia’s largest bank in April, ranked sixth in the list. Tan Su Shan is the first woman to lead DBS, succeeding Piyush Gupta.

Union Bank of the Philippines saw an increase in problem loan ratio and higher problem loan formation over the past two years due to its aggressive growth strategy. Its aggressive growth has led it to have the largest share of retail loans amongst Philippines’ largest banks, according to Moody’s Ratings.

ASIAN BANKING BANKINGAND & FINANCE 2025 4 ASIAN FINANCE| Q3 | Q3 2021

ASIAN BANKING & FINANCE | Q3 2025 5

FIRST back in 2011, Tan said. Both Japan and South Korea’s highest ROE dates back to 2010 at 11.8% and 13.2%, respectively.

In the Philippines, digital banks already account for 9% of the total market capitalisation of the banking sector, and serve 45% of the average customer base handled by the country's top three traditional banks, he added.

According to Tan, Malaysia is likely to experience a similar shift soon.

Regulations are also prompting banks to scale back from market segments where capital is deemed inefficient, allowing private credit providers to move in.

Isaac Tan, partner at Boston Consulting Group

Private credit moves in as banks retreat INVESTMENT BANKING

P

rivate credit has become a recognised asset class and is now a common part of institutional investment portfolios, amidst declining profits in Asia-Pacific banks, shifting valuations, and mounting competition from fintech players.

Traditional universal banks are increasingly squeezed between nimble digital competitors and high-value niche players, Isaac Tan, a partner at Boston Consulting Group in Kuala Lumpur, told the Asian Banking & Finance and Insurance Asia Summit - Malaysia 2025.

"Private credit players are entering a space that banks traditionally serve. But because of regulation, banks are moving away," he pointed out to the attendees.

Nonbank lenders—typically credit fund managers who work directly with corporate borrowers—are now providing capital even to low-risk segments that were once the exclusive clients of regulated banks, he added.

To maintain a presence in these markets, some banks have opted to become investors or partners in private credit deals—a strategy that is becoming more common in markets such as India, Tan noted.

In a separate interview, a CEO of an India-based non-bank wealth management company told Asian Banking & Finance of how private investors and creditors are seeking private equity opportunities such as

6 ASIAN BANKING & FINANCE | Q3 2025

startups and late-stage investments.

“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,” said Nitin Rao, CEO at InCred Wealth & Investment Services Private Limited.

Investors are showing growing interest in what Rao describes as “entrepreneurship opportunities” that banks normally shun. That’s where private debt and private credit come in.

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

The Asia-Pacific private credit market was valued at about $120b at the end of 2023, with a sixfold increase in assets under management from 2014, according to investment data company Preqin Ltd. Since the 2008 global financial crisis, banks’ return on equity (ROE) has steadily declined across most markets.

India’s last best ROE dates back to 2013 at 14.9%, whilst China’s best was at 20.6%

Falling behind Whilst some banks are adapting and gaining value, others risk falling irreversibly behind, Tan told the summit attendees.

As of last year, banks in many regions were valued below their book value, a signal that investors doubt their ability to deliver superior returns, he said.

However, banks are not losing ground equally. Tan noted that whilst overall valuations have risen slightly in recent years, the gap between high-performing and underperforming banks has widened.

"The winners are getting wealthier, and the laggards, you see the increasing deviation as well,” he said. “This divergence is no longer a matter of perception; it is a structural trend.”

One of the most significant drivers of this shift is the rise of focused models—financial institutions that concentrate on specific customer segments or services.

"On average, the focused models, the better ones, tend to have two to six times better valuation than the better performing banks,” the Boston Consulting Group partner said.

A commentary from BNP Paribas Asset Management noted the potential of private credit to offer investors higher gross yields than traditional high-yield bonds with comparable credit ratings, Private credit investments may also include structural features that can provide more downside protection and higher recovery rates than traditional unsecured bonds, wrote Stéphane Blanchoz, client solutions manager and head of alternative solutions for BNP Paribas Asset Management.

“In the search for returns, we believe private credit offers competitive risk-adjusted returns relative to traditional equity and credit strategies,” Blanchoz wrote.

Private credit players are entering a space that banks traditionally serve. But because of regulation, banks are moving away

FIRST

Alex Panas

Over 50% of women over 60 prefer in-person financial advice

Banks miss $10t opportunity by neglecting affluent women

Axel Karlsson

WEALTH MANAGEMENT

W

omen will be at the forefront of wealth management over the next 20 years but are still less likely to work with wealth managers, presenting a multi-trillion-dollar opportunity for financial advisors, according to McKinsey & Company.

Affluent women are expected to inherit up to $105t over the next 20 years in the US and Europe alone, according to McKinsey experts Alex Panas and Axel Karlsson, citing a report by Fortune.

This untapped market presents

a potential $10t opportunity for wealth managers by 2030.

In the US and EU, for example, women currently control about a third of all retail financial assets. This market share is expected to rise to 40% to 45% by 2030.

Despite their growing affluence and financial confidence, however, women remain less likely than men to work with wealth managers, McKinsey found. Researchers estimate that over 53% of assets controlled by women are unmanaged, compared to 45% in men.

Women tend to adopt a measured and cautious approach to investing that prioritises longterm financial security

Unique financial behaviours and preferences of affluent women include a preference for in-person financial advice that correlates closely with age.

In Europe, for example, the share of women who prefer in-person advice rise with age, with one in three (35%) of 18- to 35-year-old women saying this, compared to one in two (50%) of those over 60 years old.

In the United States, women over 50 are more likely than their younger counterparts to pay a premium for in-person service.

Affluent women prefer stable investments and focus on the long game, according to McKinsey. “[Women] tend to adopt a measured and cautious approach to investing that prioritises long-term financial security,” it said.

Affluent women also tend to focus on achieving specific goals, rather than reaping the highest returns, according to McKinsey.

Ways that wealth managers fall short in engaging affluent women include a lack of women representation in the adviser pool.

“Teams that include women and members of other underrepresented groups are seen as better able to retain female clients during major life events such as divorce or widowhood, key moments at which women are most likely to switch advisers,” McKinsey found.

THE CHARTIST: INVESTMENT BANKING FEES JUMP 38% IN H1 2025

S

ingapore’s investment banking sector recorded a strong first half in 2025, with total fees rising by 38% YoY to $583.47m (US$432.2m), according to LSEG’s latest Investment Banking Review.

Citi led the investment market with $72.9m (US$54m) in fees, capturing a 12.5% share.

The growth was driven by broadbased gains across advisory and capital markets activities. Mergers and acquisitions (M&A) advisory fees surged 132% to $230.99m (US$171.1m).

Equity capital markets (ECM) fees grew by 117% to $102.87m (US$76.2m), whilst debt capital markets (DCM) fees climbed 49% to $109.08m (US$80.8m).

Syndicated lending was the only major segment to decline, with fees dropping 31% to $140.4m (US$104m).

Total M&A activity involving Singapore reached $47.52b (US$35.2b), up 3.2%

from the same period last year. Target Singapore M&A rose 69.7% to $22.01b (US$16.3b), and inbound M&A grew 71.9% to $15.12b (US$11.2b).

Outbound M&A fell 28.4% to $10.53b (US$7.8b). The high technology sector led M&A value with $7.97b (US$5.9b) in deals. JP Morgan was the top M&A advisor, handling $5b (US$3.7b) in transactions.

Equity capital markets rebounded strongly, raising $4.19b (US$3.1b) in total proceeds—an increase of 367% year-on-year. There were 16 initial public offerings, which collectively raised $658.26m (US$487.6m), up 722% from a year ago.

Most listings occurred outside Singapore, notably in Hong Kong and the United States. The technology sector dominated, accounting for 61.5% of ECM volume. HSBC, JP Morgan, and Morgan Stanley tied as the top ECM underwriters.

Singapore investment banking fees SINGAPORE INVESTMENT BANKING FEES ((US$ MIL)) | YTD VOLUMES $600 $500 $400 $300 $200 $100 $0

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 YTD IB Fees (US$bil)

SINGAPORE INVESTMENT BANKING FEES BYA SSET CLASS( US$M IL) $250 $200 $150 $100 $50 $0

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Completed M&A

Equity

Bonds

Loans

Source: LSEG

ASIAN BANKING & FINANCE | Q3 2025 7

FIRST THAI BANKS FACE LITTLE THREAT FROM VIRTUAL ENTRANTS RETAIL BANKING

T

hailand’s incumbent banks are safe in the near term from disruption that may come from the new virtual banks that are launching in 2026.

These three new virtual banks will have to operate under regulatory restrictions in the next three to five year period, says Moody’s Ratings in a June 2025 commentary.

Under the BOT's licensing framework, virtual banks will gradually increase their capital to at least $306m (THB10b) from $153m (THB5b) during the restricted phase.

Virtual banks are also expected to focus on lending to underserved and unserved segments. These include lower-income retail customers, self-employed customers, and small businesses— customer segments that incumbents avoid lending to.

New virtual banks Thailand’s Ministry of Finance (MOF) approved three applicants to establish virtual banks, following a joint review with the Bank of Thailand (BOT).

The three successful applicants are ACM Holding Company, which is part of Charoen Pokphand Group (CP Group), Thailand’s largest conglomerate; a consortium consisting of Krung Thai Bank, PTT Oil, and Advinced Info Service; and a consortium with SCB X, KakaoBank, and WeTechnology that is backed by WeBank.

These new entrants will not be bogged down by physical branches and legacy infrastructure and can leverage on the complementary strengths of their consortium partners, according to Moody's.

“For instance, we expect the SCBX consortium to benefit from KakaoBank's and WeBank's years of operational experience and established track record in operating digital banks in South Korea and China, respectively,” it said.

8 ASIAN BANKING & FINANCE | Q3 2025

SafeBlock is part of Westpac's $100m investment in scam protection (Photo from Westpac)

Aussie banks roll out locks to block scams BANKING TECHNOLOGY

A

ustralian banks have started rolling out digital lock and block capabilities that let their clients disable compromised accounts using their apps to fight rising digital fraud.

“We expect scammers to leverage emerging technologies like GenAI (generative artificial intelligence), deepfakes, and voice cloning to make their scams more convincing,” Shaq Johnson, head of customer protection at Australia and New Zealand Banking Group Ltd. (ANZ Bank), told Asian Banking & Finance.

Cyberattacks have become more sophisticated, with criminals now using AI and deepfakes to create hyper-personalised, intricate, and harder-to-detect scams, he said.

An October 2024 study by the National Australia Bank found that 63% of Australians experienced a cyberattack or data breach in the past 12 months. About 62% of the respondents also said they were worried about their personal cybersecurity.

ANZ Bank’s Digital Padlock option, slated for a mid-2025 roll-out, will let customers quickly disable digital access and block credit and debit cards

Shaq Johnson

We expect scammers to leverage GenAI, deepfakes, and voice cloning to make their scams more convincing

without the need to call their bank or going to a branch.

“Digital Padlock allows customers to lock their accounts immediately if they notice unauthorised activity or if they believe their account and personal information have been compromised,” Johnson told the magazine.

Another Australian bank, Westpac, has rolled out an equivalent service called SafeBlock.

In a statement, Westpac said it has invested more than $100m in scam prevention efforts, and claims to have prevented scammers from stealing approximately $400m.

Johnson said ANZ has invested in combating deepfake technology. Last year, it rolled out its CallSafe service, which allows digital banking customers using ANZ Plus to verify if they are speaking to ANZ staff. In turn, bank staff can authenticate customers’ identity, he added.

Since going live in November 2024, CallSafe has been used to authenticate customers more than 20,000 times.

Australian banks are not the first in the Asia-Pacific region to roll out digital lock capabilities for their customers. In November 2023, banks in Singapore launched a similar service known as “money lock."

Two months into its launch, the feature was activated by 38,000 accounts in Singapore, with a total value of $2.5b (S$3.2b) locked up, according to January 2024 data from the Association of Banks in Singapore.

Added verification Beyond digital locks, Australia’s banking and payments sector has rolled out the Confirmation of Payee (CoP) system.

The system checks the account names and numbers entered by the payer against the details held at the receiving banks. Before a transfer is made, Australians are notified if the name of the receiving account does not match.

Using that information, the customer can then decide if they want to go ahead and make the payment, pause and check the details again, or stop the payment altogether, according to the Australian Banking Association.

This is expected to help reduce scams and mistaken payments, it added.

Australia’s four major banks all separately welcomed the CoP rollout, saying that it is an important step in strengthening the local payments system against scams.

Driven to deliver for our clients As one of the world’s leading full-service investment banking and capital markets firms, Jefferies offers clients bespoke advice and exceptional execution informed by our deep product and sector expertise.

©2024 Jefferies.

ASIAN BANKING & FINANCE | Q3 2025 9

FIRST NUMBERS

CREDIT STRAINS BATTER APAC BANKS China: More recognition likely to raise NPL, SML ratios NPL + SML portion

8

Other problem assets

India: Better asset quality ratios will persist 14

(%)

6 (%)

0

-1 2023

2024

2025f

2026f

1.3

670

0.8

620

0.3

570

(0.3)

SSEA: Household leverage is high in Thailand and Malaysia GDP per capita (right scale)

50

2.5

80

2.0

40

25

20 IndiaB

aBruneiP iPhilippines Indonesia

0

0

Nonbank deposit-takers NPL Banks' NPL Banking system NPL ratio (right scale)

0.4 0.2 0.1 0.0 2012

2014

2016

2018

Nonperforming assets (left scale)

2020

2022

2024

2026f

Credit losses (right scale)

0.8 0.6

1.5

0.4

1.0

0.2

0.5

0.0

0.0 2020

Korea: High credit risks for nonbank deposit -takers 100

FY2023 FY2025e FY2027f

(as a % of total loans)

100

60

ChinaS aSingapore

FY2021

Hong Kong: Credit losses likely to remain contained

(USD 000s)

75

Malaysia

FY2019

0.3

-0.1 2010

Oct-23 Dec-23 Feb-24 Apr-24 Jun-24 Aug-24 Oct-24 Dec-24 Feb-25

Thailand

FY2017

0.5

(%)

(JPY tril)

Loan Balance (left scale) Lending rates (new; 6M moving ave; right scale) Interest rate on savings deposit (right scale)

100

FY2015

eAustralia: Credit losses should remain low

Japan: Net interest income is set to increaseA

Household debt to GDP…

FY2013

2027f

Credit losses as a % of total loans

2022

(as a % of total loans)

2021

2021

2022

2023

2024

2025f2

f2 026f

Taiwan: Improved core earnings helps absorb credit costs 3.0

Net interest margin Pretax ROAA Loan loss provision / Avg. assets

1.2 1.0

1.5

(%)

50

0.8 (%)

2020

(%)

(%)

2 4

2

(KRW, trillion)

4

9

4

0

Standard restructured loans ratio Gross nonperforming loan ratio Credit losses as a % of total loans (right scale)

Forborne loans

0.6 0.4 0.2

0

0.0 2011

2013

2015

2017

2019

2021

2023

2025f2

f2 027f

0.0 2018

2019

2020

2021

2022

2023

2024

2025f

Notes: India data for fiscal years, all ended March 31. FY--Fiscal year. NPL--Nonperforming loans. SML--Special-mention loans, f—Forecast. SSEA--South and Southeast Asia. ROAA--Return on average assets.

Sources: Bank of Japan, National Financial Regulatory Administration, Reserve Bank of India, Hong Kong Monetary Authority, Bank of Korea, Financial Supervisory Commission, Taiwan Ratings Corp., S&P Global Ratings

10 ASIAN BANKING & FINANCE | Q3 2025

ASIAN BANKING & FINANCE | Q3 2025 11

VOX POP

How do tokens affect cash management?

FINANCIAL SERVICES

Lewis Sun Global Head of Domestic and Emerging Payments, Global Payments Solutions, HSBC As treasurers face growing demands to manage global liquidity in real time, the limitations of traditional payment infrastructure become increasingly apparent. Cross-border transactions in particular are often subject to cut-off times, batch processing, and limited visibility. Even within local markets, real-time payments are restricted to local currency.

Tokenised deposits change this paradigm. By converting traditional commercial bank deposits into blockchain-based tokens – otherwise known as tokenised commercial bank money or tokenised bank deposits – treasurers now have 24/7 access to secure, digitised liquidity, enhancing the visibility and control of their finances. As tokens reflect value on blockchain, payment confirmations can occur instantaneously, enabling round-the-clock visibility across jurisdictions. Moreover, the embedded smart-contract feature on a blockchain network enables programmable payments and opens up many more use cases.

For corporates operating across multiple markets, this translates into a more agile and resilient treasury management. With the ability to confirm and reflect transactions in real time, treasurers can focus on managing working capital dynamically throughout the day.

Ambrish Bansal Global Head of Liquidity and Cash Concentration Products Citibank The business world never sleeps. In today's always-on economy, realtime financial transactions are no longer a luxury—they're a necessity.

Businesses, from Main Street to Wall Street, need the power to move money instantly, efficiently, and globally.

Traditional banking systems and processes, with their inter-bank cutoff times, holidays, and weekend closures, simply can't keep pace with the demands of modern business. Moving funds across borders often involves delays, complexities, and added costs, hindering growth and efficiency.

In today’s global, real-time world, businesses demand speed, simplicity and 24/7 access to liquidity. Citi Token Services offers a secure, scalable solution designed to transform cross-border cash management.

[It] revolutionises cross-border cash management by leveraging digital tokens on Citi’s privately permissioned blockchain network. This innovative solution enables instantaneous fund movements across the globe, bypassing the limitations of traditional banking systems.

Citi Token Services helps eliminate the complexity for the client.

Clients don't need to hold or manage any tokens and instead can operate with existing fiat accounts and balances.

HSBC unveils Tokenised Deposit Service for treasury management PRODUCT WATCH

H

SBC’s Tokenised Deposit Service has gone live in Hong Kong.

Tokenised Deposit Service is a bank-led, blockchain-based settlement service that will support treasury management of HSBC’s corporate clients with real-time HKD and USD payments.

The payments can be facilitated between corporate wallets held by a client at HSBC Hong Kong.

“Tokenised deposits, when supported by regulated financial institutions, can offer a safe and fully compliant approach to improving payments and cash management for corporates,” said Lewis Sun, global head of domestic and emerging payments, Global Payments Solutions, HSBC. It supports settlement requirements for tokenisation use cases, including those that are being explored under the Hong Kong Monetary Authority’s (HKMA) Project Ensemble, the bank said in a press release.

Ant International is HSBC’s first client to 12 ASIAN BANKING & FINANCE | Q3 2025

adopt Tokenised Deposit Service.

Tokenised Deposit Services’ design draws inspiration from HSBC and Ant International’s collaboration on co-developing blockchain-based payment.

Under the HKMA’s Ensemble sandbox in October 2024, HSBC and Ant International successfully implemented an HKDdenominated cross-bank experiment, which provided insights in using tokenised deposits to facilitate real-time cross-bank corporate treasury management.

Tokenisation Deposit Service also marked the first live pilot initiative supported

by HKMA’s Supervisory Incubator for Distributed Ledger Technology.

Through this supervisory arrangement, HSBC seeks to demonstrate how banks can harness the advantages of DLT and manage its associated risks, the bank said.

The service is designed to integrate with, and support the HKMA’s tokenisation and digital money infrastructure development.

HSBC and Ant International during the live launch (Photo from HSBC)

ªTake wealth possibilities to greater heightsº We’re the bank bringing you international expertise and solutions to grow your wealth across the world’s most dynamic markets.

Find out more at sc.com/hereforgood

ASIAN BANKING & FINANCE | Q3 2025 13

FINTECH WATCH: ALETA PLANET

Aleta Planet launches payment app for Muslims across Southeast Asia The platform will soon let users find Muslim businesses in the region.

SINGAPORE

S

ingapore fintech Aleta Planet Pte. Ltd. has rolled out a digital payment platform for Muslim communities in Southeast Asia.

Future versions of the MPLUS Aleta app would feature a Muslim vendor directory, letting users find Muslim merchants and businesses in the region, Ryan Gwee, founder and group chairman at Aleta Planet, told Asian Banking & Finance.

“Essentially, the thought came from how we could better promote and make Muslimowned enterprises work closely and get to know the younger generation of Muslims in Singapore,” he said in an interview.

He noted that there are hundreds of thousands of Muslim-owned enterprises and a big population of

Muslims in Singapore. “For example, if I go to the Philippines, and I go to a resort or to a new area, I should be able to see where all the Muslimowned enterprises are,” he said.

“They should pop up on my screen and say which services they provide, as well as the deals they have for the community," he added.

Gwee compares MPLUS Aleta to PayPal but without the fees. Shariah law prohibits interest and requires Muslims to donate a portion of their wealth to charitable causes.

The app offers a QR (quick response)-based closed loop payment system for Muslim merchants and buyers in Singapore.

The company plans to launch the service in Indonesia and Malaysia soon, the founder said.

The thought came from how we could better promote and make Muslim-owned enterprises work closely

Ryan Gwee

Consumers using the platform will have access to a pool of Muslim merchants offering a range of products and services. Muslim merchants using the app will benefit from zero transaction fees for a period of 24 months.

MPLUS Aleta has also announced a cashback programme.

Aleta Planet, which started in 2014 to offer business-to-business solutions to and from China, has since created apps for visitors going to China and Bhutan, and for the trade of perishable goods.

“In the last three years, we have worked with countries, governments, and institutions to develop closed loop banking applications to enhance the usability of their users and their database,” Gwee said.

QR-based payment system

Partner merchants at the Geylang Serai Ramadan Bazaar

Sales summary

Staff management dashboard (Photos from Aleta Planet)

14 ASIAN BANKING & FINANCE | Q3 2025

ASIAN BANKING & FINANCE | Q3 2025 15

INTERVIEW

Citi almost triples wealth transactions after digital platform revamp Four of five clients use the bank’s mobile app regularly.

SINGAPORE

C

itibank Singapore’s digital wealth management transactions rose 165% times in the last two year after revamping its mobile app and website and launching more than a hundred features to its wealth products, according to the bank.

“We realised that our digital ecosystem should speak in the wealth language,” Gourab Kundu, head of digital growth for Asia South at Citi Wealth, the bank’s wealth management arm, told Asian Banking & Finance.

“The few immediate changes that we made is to completely revamp the way we speak to our clients through our website and mobile app,” he said.

Four of five clients use Citi’s digital app regularly.

One of the biggest changes to the lender’s digital platforms is an auto top-up feature where brokerage clients can now invest in US dollars. Citi will do the foreign currency swap for the client in real time.

“We were told that 70% of our transactions in brokerage happen in the US markets, based on Singapore data," Kundu told the magazine in an exclusive interview. He noted that clients previously had to convert Singapore dollars into US dollars before making trades. More than 90% of their brokerage transactions are now done digitally.

Kundu’s team crafted an auto top-up feature, which allowed clients to invest directly by enabling currency conversion on the back end.

Citi also doubled mutual fund transactions after simplifying the investment process, whilst rolling out an easy visualiser so clients could quickly see the movements of their wealth portfolios, he said.

Next step Kundu said that in Citi, wealth management is in the era of hybrid experiences for its clients since they use digital platforms whilst still talking to relationship managers.

He told the magazine that in Asia, there has been an influx of digital wealth management providers in the past three to four years, making wealth services more accessible to their clients.

To maintain its competitive edge, Citi combines digital and human access. For example, the bank allows a client to swiftly authorise a transaction without speaking with an advisor face-to-face.

“Essentially, the advisor reaches out to the clients to tell them about a product,” Kundu said. “The platform triggers an alert, where [the client] can review the transaction before authorising it. It’s all done within the app environment.”

They have also created a secure WhatsApp channel where relationship managers can interact with clients.

The next step for Citi’s global wealth management arm is real-time payment processing, Kundu said.

“We realise that one of Citi’s biggest advantages is our 16 ASIAN BANKING & FINANCE | Q3 2025

Gourab Kundu, head of digital growth for Asia South at Citi Wealth

One of Citi's biggest advantages is our globality

globality,” he said. “Having those payment corridors available in real time is really good.”

The company recently launched real-time payments in India, the UK, and Thailand. “We do see solid improvements in the uptake of this cross-border payment facility,” he told the magazine.

In meeting all these real-time requirements as well as rolling out hundreds of new features and products, it becomes even more important to have proactive risk management, he said.

“Depending on the market nuances, depending on how the clients have invested, there is a need to visualise your wealth portfolio more efficiently,” Kundu said.

The bank also has real-time dashboard monitoring for command centers, Kundu shared.

Citi also does what Kundu calls “release management,” where the bank focuses on releasing new features to clients systematically, month-over-month.They are particularly focused on releasing new wealth management products.

“A key message here is, whatever we are doing, being agile, releasing them on time, is essential to have. Having an impact is not just about usage, but about [bringing] value for our clients,” Kundu said.

ASIAN BANKING & FINANCE | Q3 2025 17

INTERVIEW

CBA deploys AI bot army to study scam attacks

Thousands of voice and chat bots intercept scammers before they reach real customers.

C

AUSTRALIA

ommonwealth Bank of Australia (CBA) has found a way to protect its customers from scams whilst collecting data on fraud schemes— through artificial intelligence (AI)-powered bots.

In partnership with security platform Apate.ai Pty Ltd., the lender now operates 10,000 voice bots and 2,500 message bots designed to intercept scammers before they can reach real customers.

“For every minute that a scammer is on the line with a bot, or in a messaging conversation with a bot, they are not attacking an Australian,” James Roberts, CBA’s head of group fraud, told Asian Banking & Finance.

Each intercepted attempt not only prevents a scam but also feeds data into the bank’s anti-fraud systems, he said.

“One phone call might generate one piece of intelligence that then allows us to block 10 other scam attempts because of what scammers disclose to the customer on the line,” Roberts said. “It’s almost like a multiplier effect that eats at the very business model of the scammers.”

Protection on a wider scale Before using bots, banks relied on analysts to track scammer behaviour. However, that approach lacked the scalability needed to combat evolving threats. “What the bots bring is the ability to do this at scale,” he pointed out.

The ability to scale was in Dali Kaafar’s mind when he and Apate.ai decided to develop the AI bots.

Kaafar, who is CEO and co-founder of the AI intelligence and fraud prevention company, shared in the interview that a 44-minute conversation he had with a scammer whilst on a picnic with his family was one of the inspirations for developing the AI bots.

“My kids had a lot of fun,” Kaafar said described the scam conversation as a “fun comedy show” for his children. “As I was hanging up, I realised that this is 44 minutes of the scammer’s time that is not being put into action to scam others," the co-founder continued.

But that was also 44 minutes of his own life that he can never get back. “Just like honeypots attracting malicious actors in networks, we wanted to create these believable personas of bots that scammers would engage in.

Technology can do this at scale.”

The system has recorded calls as long as 54 minutes, helping banks learn scammers’ tactics and scripts. Roberts told the magazine that message bots are especially valuable for tackling investment scams, which often occur through messaging platforms.

CBA is expanding its data collection efforts by working with other organisations, notably Telstra Group Ltd., Australia’s largest telecommunication company.

“They feed us indications for our joint customers when

18 ASIAN BANKING & FINANCE | Q3 2025

One phone call might generate one piece of intelligence that then allows us to block 10 other scam attempts because of what scammers disclose to the customer

there’s potentially a scam call happening,” he said. “We can see someone on a potentially long, bad call, and then logging on to do a new high‑value payment. That gives us a signal to intervene," he continued.

In November 2024, the Aussie bank introduced a mobilebehaviour scoring system to monitor the risk of fraudulent account creation and takeovers. These measures, combined with the bot network, form a key part of the bank’s evolving anti-fraud strategy.

“It’s definitely an arms race,” Kaafar said, noting that scammers are becoming more automated and socially engineered, often using leaked data to craft believable pitches. “The key battleground will really be speed and flexibility," he added.

Both executives cited the need for collective industry action. “One of our calls to action is that the bigger our bot army, the more effect it can have,” Roberts said. “We’re calling out to the rest of the banks and the rest of the telcos to essentially join [us], and have a bigger bot army, which then essentially multiplies the impact.”

Roberts highlighted that the Australian regulatory regime is taking an ecosystem approach against scams.

“I think the solution on a global scale is one of ecosystem collaboration between telcos, banks, and digital platforms to help suppress scams,” he said.

Scammers are expected to try to leverage and breach data, and make their stories and their tactics more believable. One way they are doing this is by using AI themselves to create deepfakes, Kaafar told the magazine.

Dali Kaafar, Apate.ai CEO, and James Roberts, Commonwealth Bank of Australia head of group fraud

ASIAN BANKING & FINANCE | Q3 2025 19

RANKINGS: APAC

Chinese megabanks cement nation’s economic prowess

Banks in China dominated S&P Global Market Intelligence’s top 50 lenders.

APAC

C

hinese megabanks continued to be the AsiaPacific region’s biggest lenders by assets last year, and are expected to further boost their capital buffers thanks to the state’s $69.6b (CNY500b) capitalinjection plan.

Twenty-three banks from Mainland China made it to S&P Global Market Intelligence’s top 50 lenders, allowing China to project financial strength and credibility globally and reinforcing its position as a major economic power.

Eight on the list were Japanese banks, six were from South Korea, and five from Australia. India and Singapore had three banks each, whilst Hong Kong had two. Sixteen banks improved their ranking last year, 14 slipped, and the remainder held their positions.

Industrial and Commercial Bank of China Ltd., Agricultural Bank of China Ltd., China Construction Bank (CCB) Corp., and Bank of China (BOC) Ltd. continued to be the biggest lenders by assets in the region and in the world.

Postal Savings Bank of China Co., Ltd. (PSBC), Bank of Communications Co., Ltd. (BoCom), and China Merchants

Even if profits at Chinese banks face tariff pressure, their assets would be minimally impacted unless losses occur

Yusuke Miura

Lisa Barrett

Japanese lenders began posting stronger earnings beginning April 2024

20 ASIAN BANKING & FINANCE | Q3 2025

Bank Co., Ltd. were also amongst the top 10 ranked banks.

Substantial assets “Capital infusion into Chinese banks will increase their net assets,” Yusuke Miura, a senior economist at NLI Research Institute who covers the Chinese economy, said in the S&P report. “Thus, their assets will remain substantial.”

In April, China's Ministry of Finance issued the first batch of special Treasury bonds worth $69.6b (CNY500b), the proceeds of which would be used to buy shares in four megabanks—BOC, CCB, BoCom, and PSBC. Higher US tariffs on China— down to 30% on all exports as of May—is expected to have a minimal impact on Chinese banks.

“Even if profits at Chinese banks face tariff pressure, their assets would be minimally impacted unless losses occur,” Miura said.

Mainland Chinese banks typically hold larger assets than other Asian lenders because they extend loans in a market that relies less on direct finance, unlike Japan or the US, where businesses raise funds by selling new shares or bonds, he added.

Mitsubishi UFJ Financial Group, Inc., Japan’s top bank, closed out the top five. Meanwhile, Sumitomo Mitsui Financial Group, Inc. and Mizuho Financial Group, Inc. ranked eighth and ninth.

Japanese lenders began posting stronger earnings beginning April 2024 after Bank of Japan abandoned its decade-long negative rate policy a month earlier.

London-based HSBC Holdings Plc, founded in Hong Kong in 1865, landed on the 13th spot.

ANZ Group Holdings Ltd. was the highest-ranked bank in the region that is not from Greater China or Japan. The Australian bank jumped three spots to 18th place. Its rival, Commonwealth Bank of Australia, was No. 20.

India’s biggest lender by assets was the State Bank of India at No. 19. In Singapore, DBS Bank Ltd. was the undisputed king at 24th place, whilst rivals OverseaChinese Banking Corp. Ltd. and United Overseas Bank Ltd. were 35th and 41st, respectively.

Consolidations Australia’s ANZ notably acquired Suncorp Bank, a lender based in the Queensland region, in the past year. It also reported growth for its digital banking platform ANZ Plus. As of March 2025, ANZ Plus has 1 million customers with over $12.98b (A$20m) in deposits.

Broadly, Australia’s financial sector is seeing the consolidation of its mutual lenders.

In the future, there could be less than 10 mutual lenders active in Australia as consolidations ramp up over the next two years, S&P Global Ratings reported in 2024.

Up to 40 lenders face consolidation and potentially disappear due to the ongoing mergers.

This comes at a time when banks and lenders face an era of little loyalty from customers.

“Brand loyalty is all but gone,” said S&P Global Ratings credit analyst Lisa Barrett. "Brand strength and customer loyalty continue to evaporate such that price becomes a key determinant of customer acquisition. Merging provides smaller lenders greater economies of scale," she continued.

RANKINGS: APAC Current rank

Previous rank

Current vs. previous

Company (ticker-exchange)

Headquarters

Accounting principle

Total assets (US$B)

1

1

NC

Industrial and Commercial Bank of China Ltd. (1398-SEHK)

Mainland China

IFRS

6,688.74

2

2

NC

Agricultural Bank of China Ltd. (1288-SEHK)

Mainland China

IFRS

5,923.76

3

3

NC

China Construction Bank Corp. (939-SEHK)

Mainland China

IFRS

5,558.38

4

4

NC

Bank of China Ltd. (3988-SEHK)

Mainland China

IFRS

4,803.51

5

5

NC

Mitsubishi UFJ Financial Group Inc. (8306-TSE)

Japan

Japanese GAAP

2,628.12

6

6

NC

Postal Savings Bank of China Co. Ltd. (1658-SEHK)

Mainland China

IFRS

2,340.69

7

8

Bank of Communications Co. Ltd. (3328-SEHK)

Mainland China

IFRS

2,041.45

8

7

Sumitomo Mitsui Financial Group Inc. (8316-TSE)

Japan

Japanese GAAP

1,977.18

9

9

Mizuho Financial Group Inc. (8411-TSE)1

Japan

Japanese GAAP

1,805.52

NC

10

11

China Merchants Bank Co. Ltd. (600036-SHSE)

Mainland China

IFRS

1,664.87

11

10

JAPAN POST BANK Co. Ltd. (7182-TSE)

Japan

Japanese GAAP

1,546.95

12

12

NC

Industrial Bank Co. Ltd. (601166-SHSE)

Mainland China

PRC GAAP

1,439.62

13

13

NC

Hongkong and Shanghai Banking Corp. Ltd.

Hong Kong

Hong Kong FRS

1,409.58 1,306.01

14

14

NC

China Citic Bank Corp. Ltd. (998-SEHK)

Mainland China

IFRS

15

15

NC

Shanghai Pudong Development Bank Co. Ltd. (600000-SHSE)

Mainland China

IFRS

1,296.31

16

16

NC

China Minsheng Banking Corp. Ltd. (600016-SHSE)

Mainland China

IFRS

1,070.68

17

17

NC

China Everbright Bank Co. (601818-SHSE)

Mainland China

IFRS

953.41

18

21

ANZ Group Holdings Ltd. (ANZ-ASX)2

Australia

Australian IFRS

852.19

19

20

State Bank of India (SBIN-NSEI)

India

Indian GAAP

846.64

20

18

Commonwealth Bank of Australia (CBA-ASX)

Australia

Australian IFRS

809.81

21

19

Ping An Bank Co. Ltd. (000001-SZSE)

Mainland China

PRC GAAP

790.41

22

23

National Australia Bank Ltd. (NAB-ASX)2

Australia

Australian IFRS

748.98

23

24

Westpac Banking Corp. (WBC-ASX)2

Australia

Australian IFRS

747.10

24

26

DBS Group Holdings Ltd. (D05-SGX)

Singapore

Singapore FRS

606.13

25

25

Hua Xia Bank Co. Ltd. (600015-SHSE)

Mainland China

PRC GAAP

599.59

26

31

NC

Bank of Beijing Co. Ltd. (601169-SHSE)2

Mainland China

PRC GAAP

574.14

27

22

Norinchukin Bank

Japan

Japanese GAAP

560.75

28

34

Bank of Jiangsu Co. Ltd. (600919-SHSE)

Mainland China

PRC GAAP

541.41

29

27

KB Financial Group Inc. (A105560-KOSE)

South Korea

Korean IFRS

513.01

30

28

Shinhan Financial Group Co. Ltd. (A055550-KOSE)

South Korea

Korean IFRS

500.77

31

30

Sumitomo Mitsui Trust Group Inc. (8309-TSE)3

Japan

Japanese GAAP

498.16

32

32

NC

China Guangfa Bank Co. Ltd.4

Mainland China

PRC GAAP

494.93

33

33

NC

HDFC Bank Ltd. (HDFCBANK-NSEI)

India

Indian GAAP

494.06

34

29

Resona Holdings Inc. (8308-TSE)

Japan

Japanese GAAP

491.13

35

37

Oversea-Chinese Banking Corp. Ltd. (O39-SGX)

Singapore

Singapore FRS

458.00

36

36

China Zheshang Bank Co. Ltd. (2016-SEHK)

Mainland China

IFRS

455.61

37

38

NC

Bank of Shanghai Co. Ltd. (601229-SHSE)

Mainland China

PRC GAAP

442.06

38

35

Hana Financial Group Inc. (A086790-KOSE)

South Korea

Korean IFRS

431.78

39

43

Bank of Ningbo Co. Ltd. (002142-SZSE)

Mainland China

PRC GAAP

428.16

40

40

41

39

42

42

43

41

44

46

45

45

46

NC

NC

NongHyup Financial Group Inc.2

South Korea

Korean IFRS

419.37

United Overseas Bank Ltd. (U11-SGX)

Singapore

Singapore FRS

393.97

Woori Financial Group Inc. (A316140-KOSE)5

South Korea

Korean IFRS

393.34

Nomura Holdings Inc. (8604-TSE)

Japan

U.S. GAAP

385.00

Bank of Nanjing Co. Ltd. (601009-SHSE)

Mainland China

PRC GAAP

355.03

Standard Chartered Bank (Hong Kong) Ltd.

Hong Kong

Hong Kong FRS

330.74

44

Industrial Bank of Korea (A024110-KOSE)

South Korea

Korean IFRS

319.66

47

48

ICICI Bank Ltd. (ICICIBANK-NSEI)

India

Indian GAAP

295.81

48

NR

Bank of Hangzhou Co. Ltd. (600926-SHSE)

Mainland China

PRC GAAP

289.43

49

50

Macquarie Group Ltd. (MQG-ASX)2

Australia

Australian IFRS

287.26

50

49

Huishang Bank Corp. Ltd. (3698-SEHK)

Mainland China

IFRS

275.89

NC

Notes: Data compiled April 4, 2025.

NC = no change, NR = not ranked among the top 50 in the previous ranking.

Banks and institutions with significant lending practices are ranked by total assets for the most recent period available.

Only one institution per corporate structure is included in the rankings. Rankings account for completed and pending S&P Global Market Intelligence-covered bank deals with a definitive agreement in a best-efforts basis. Deals, where assets sold are in excess of $1 billion, have been adjusted using available assets of the target company or the deal announcement/completion assets where available. The rankings have been created on a best-efforts basis and exclude development banks and entities that act as central banks/banking associations/supervisors for banking groups.

Companies classified by S&P Global Market Intelligence as "banks" or "savings banks/thrifts/mutuals," or any financial holding companies with significant banking subsidiaries are included in these rankings.

Total assets are as of Dec. 31, 2024, unless stated otherwise.

Data is reported in native currencies and converted to US dollars using end-of-period exchange rates.

Total assets are as of Dec. 31, 2024, unless stated otherwise. ¹ Mizuho Financial Group Inc.'s total assets were adjusted lower by $9.7 billion to account for the pending sale of Mizuho Trust & Banking (Luxembourg) SA and Mizuho Bank (USA) LLC, which was announced Feb. 28, 2025. ² Total assets of ANZ Group Holdings Ltd., National Australia Bank Ltd., Westpac Banking Corp., Bank of Beijing Co. Ltd., NongHyup Financial Group Inc., and Macquarie Group Ltd. are as of Sept. 30, 2024. ³ Sumitomo Mitsui Trust Group Inc.'s total assets were not adjusted for the pending sale of Sumitomo Mitsui Trust Loan & Finance Co. Ltd. due to a lack of current financial data.

4 China Guangfa Bank Co. Ltd.'s total assets were as of Dec. 31, 2023.

5 Woori Financial Group Inc.'s total assets were adjusted higher by $37.44 billion for the pending acquisitions of Tong Yang Life Insurance Co. Ltd. and ABL Life Insurance Co.

ASIAN BANKING & FINANCE | Q3 2025 21

BANK RANKINGS: SINGAPORE

DBS and OCBC top this year's bank rankings

Automation stalls hiring at Singapore’s top banks Lenders are also upskilling to keep up with tech.

SINGAPORE

T

he headcount at Singaporean banks either fell or rose by only a single digit last year, as some lenders cut jobs due to automation, whilst others limited hiring to positions like relationship managers and tech experts.

The fifteen banks included in this year’s edition of the bank ranking survey collectively employed about 54,000 people by end-2024, marking a 1.79% decline from a year earlier.

Bank of China posted the biggest decline at 13% or 855 workers. On the other hand, Credit Agricole Corporate and Investment Bank added 314 employees to 2,000, 18% more than a year earlier.

Oversea-Chinese Banking Corp.

Ltd. (OCBC) swept past United Overseas Bank Ltd. (UOB) to take the second spot, with 10,714 workers.

UOB had about 600 fewer people on its payroll, compared with OCBC losing 225 workers.

OCBC attributed the reduction in jobs to changing customer expectations and technologies.

“From 2018 to 2025, we have committed over $80m towards employee development and mobility,” Ernest Phang, managing director for 22 ASIAN BANKING & FINANCE | Q3 2025

Wong Keng Fye

Ernest Phang

Mukul Anand

group human resources at OCBC, told Asian Banking & Finance.

This includes growth and job mobility opportunities for its employees, apart from reskilling and upskilling programmes.

“Currently, we offer more than 29,000 programmes across OCBC,” he said.

Like OCBC, Maybank Singapore said that it “remains a strong advocate for grooming internal talent.”

“We anticipate more focused recruitment in business lines tied to digital transformation, data analytics, cybersecurity, customer experience innovation, compliance, wealth management, and global banking,” according to Wong Keng Fye, head of human capital at the bank.

The bank, whose parent Malayan Banking Berhad is Malaysia’s biggest bank by assets, added 113 workers to 2,277, the second-fastest increase after Credit Agricole.

According to Wong, their hiring priorities this year revolve around digital, data, and technology.

“Emerging technologies such as artificial intelligence (AI), cloud, and big data analytics are reshaping the skillsets we prioritise."

On the other hand, HSBC

Holdings Plc, whose headcount rose 1.2% to 3,990, said wealth management and digital banking are central to its business strategy and human resource priorities.

“In wealth management, which remains a growth driver for HSBC in Asia, we're continuing to focus on client-facing, relationship management, and customer service positions to support our ambition to be Asia's leading wealth manager,” according to Mukul Anand, head of HR at HSBC Singapore.

RHB Singapore is also looking to hire more relationship managers.

“A key focus area is retail banking, where we anticipate continued growth, particularly in hiring relationship managers to support wealth products as part of our expansion strategy,” Jenson Tng, head of human resources at RHB Singapore, told Asian Banking & Finance.

“We are also prioritising talent with expertise in regulatory compliance, financial crime, risk, and Treasury, particularly those with cross-border experience and are skilled in operational excellence and digital process transformation,” he added.

'Digitally savvy' Both HSBC and RHB cited the need for real-time, hyper-personalised, and seamless digital banking experiences.

HSBC’s Anand said customer expectations for a hyper-personalised, frictionless experience with a blend of digital convenience underscores the need to hire digitally savvy talent.

“This dual expectation is driving our approach to hire talents who are digitally savvy, especially in wholesale banking where we have market-leading transaction banking platforms,” he said.

RHB’s Tng, meanwhile, said that they are investing in people who could work on intelligent automation, cloud infrastructure, and sustainable banking solutions.

“We are placing greater emphasis on developing internal talent, particularly in roles that support digital enablement, customer excellence, and sustainability,” he said.

This includes structured upskilling programmes in data analytics and cross-border banking, he added.

Whilst banks are prioritising hiring and upskilling to keep up with advanced technology, tech is also

BANK RANKINGS: SINGAPORE the market for some strategic [hiring] moves," he added.

Jenson Tng

Banks prioritise hiring for roles in data analytics and intelligent automation Serena Fernando

being cited as a reason for increased retrenchments, a hiring expert said.

“There has been an increase in retrenchments due to the shifting structure of banking,” said Serena Fernando, a senior consultant for banking and financial services at Robert Walters Singapore.

The rise of AI and automation means people must upskill and take on more sophisticated tasks, she said in a separate interview.

“For customer service roles, we are already seeing chatbots being introduced and the number of hires for customer service has dipped, with some banks making huge cuts in headcount,” she added.

More opportunities The Johor-Singapore Special Economic Zone and higher US tariffs could be positive for job seekers in Singapore’s banking industry.

“This is relatively newly launched, but there are banking institutions that have already discussed potential synergies,” Fernando said.

Six financial institutions have been roped in to support investment growth in the zone—Bank of America Corp., HSBC, Sumitomo Mitsui Banking Corp., CGS International Securities Singapore Pte. Ltd., Maybank and CIMB. “This could mean more operational or manual work being offshored to this area, or level one technical support roles,” she said.

US tariffs and trade uncertainties could lead to companies, including banks, moving roles from Hong Kong to Singapore to hedge against geopolitical uncertainties.

“Some clients are opting to retain

their existing Hong Kong footprint, but to expand into Singapore as a second Asia-Pacific office for business contingency reasons, and also to use Singapore as a gateway to access investment opportunities in Southeast Asia,” Fernando said.

Banks in Singapore are hiring fewer people—or not at all—as corporate spending hits a brake to stay liquid, according to Ken Ong, managing director at recruitment consultancy Morgan McKinley’s Singapore operations.

“Even the volume of replacement is not in proportion to the attrition level,” he said, noting that for every two people who resign, only one post gets replaced.

Ong expects bank hiring to slow this year, although some posts remain in demand, including relationship managers and roles in wealth management and family offices.

“Bulge bracket banks are not hiring as many,” he said. “However, the second-tier banks, specifically Asian banks, still have a certain appetite in

Ken Ong

The main challenge currently in the market is that everyone is just being very cautious

'Contracting route' Ong said second-tier banks are still hiring specialised workers who will help them boost their cybersecurity, cloud investment, and data analytics.

Much of the hiring is limited to contract workers and project-based roles as Singapore’s economy is expected to be flat this year, he told Asian Banking & Finance.

“When they look at that sort of projection, then they will also take a step backwards from hiring for a replacement role,” he said. “A lot of banks also just want to have more agility with their cash flow and make sure that they have a bit of cushion.”

“The main challenge currently in the market is that everyone is just being very cautious,” he added.

There has also been a shift amongst workers, from bankers moving to fintech to Hong Kong posts being moved to Singapore, according to Ong. Employers are also using contractual work to test employees before offering them a permanent job, the managing director added.

“Most clients are happy to explore the contracting route to validate performance," he said.

New hires themselves seek job contracting to explore what career paths they want, Ong added.

“Unlike the old times where they were told to get into a role and become a specialist very earlier in their career, they prefer to get a variety of exposures before deciding what specialisation they want to get into,” Ong said in an interview with Asian Banking & Finance.

Bank of China posted the biggest decline at 13%

ASIAN BANKING & FINANCE | Q3 2025 23

BANK RANKINGS: SINGAPORE 2025 Ranking

Bank

Number of employees end-2024

Number of employees end-2023

Percent Change

CEO or Country Head

1

DBS*

12,000

12,000

NO DATA

Tan Su Shan

2

Oversea-Chinese Banking Group

10,714

10,939

-2.06%

Helen Wong

3

United Overseas Bank

10,455

11,057

-5.44%

Wee Ee Cheong

4

Citi Singapore**

8,000

~8,500

-5.88%

Tibor Pandi

5

HSBC

3,990

3,942

1.22%

Wong Kee Joo

6

Maybank Singapore

2,277

2,164

5.22%

Alvin Lee

7

BNP Paribas^

2,000+

2,000+

NO DATA

Joris Dierckx

8

Credit Agricole Corporate and Investment Bank

2,000

1,686

18.62%

Antoine Sirgi

9

Bank of China

830

955

-13.09%

Shi Wei

10

Mizuho Bank^

>700

>700

NO DATA

Josephine Lok

11

RHB Singapore

657

656

0.15%

Goh Ken-Yi

12

State Bank of India

126

126

0%

M P Siva

13

ICICI Bank

104

110

-5.45%

Kadayam Venkatachalam Rajaram

14

Bank of India^

77

77

NO DATA

Mukesh Kumar Jha

15

UCO Bank

35

37

-5.40%

Sanjeev Sudhakar

53,965

54,949

-1.79%

TOTAL

Footnotes *DBS' numbers are retained from the 2022 and 2023 Bank Rankings survey. The bank said that it is unable to share specific data. Based on their 2025 Annual Report, the bank has 41,000 employees worldwide **Citi Singapore clarified that the number includes full-time employees, contractors and non-employees on fixed-term projects ^Numbers maintained from the 2024 Bank Rankings survey Other Notes (1) Standard Chartered has opted not to participate in this year's survey. In 2024, Standard Chartered is estimated to have 9,000 employees in Singapore, and was fourth on the list.

(2) CIMB has opted not to participate in this year's survey. In the 2024 list, CIMB is reported to have 925 employees in Singapore, and was tenth on the list (3) Last year's ranks have been adjusted to account for non-participants.

24 ASIAN BANKING & FINANCE | Q3 2025

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ASIAN BANKING & FINANCE | Q3 2025 25

BANK RANKINGS: HONG KONG

Talents shun banks on lengthy hiring processes

Hiring rose 2.5% amongst 15 lenders in Asian Banking & Finance's survey.

HONG KONG

B

anks in Hong Kong should streamline their application processes and reconsider language requirements if they want to hire and retain the top talent, recruitment experts told Asian Banking & Finance.

More selective and longer hiring timelines are hurting banks’ ability to attract workers, said Robert Sheffield, managing director for China and Hong Kong at Irelandbased recruitment consultant Morgan McKinley.

“We're seeing a number of [toptier candidates] take opportunities with competitors that offer a more streamlined and efficient hiring experience,” he said. Skilled workers in high demand are less likely to go through a longer interview process, he added.

Multiple hiring stages Applicants often have to complete cognitive, personality, and behavioural tests to help predict job performance, along with the need to provide detailed references. Hiring managers also evaluate soft skills and emotional intelligence and how workers will fit the company culture.

They also face several layers of interviews with compliance and risk departments, and detailed documentation in each hiring stage, Sheffield said.

The long hiring process comes with stricter regulatory scrutiny in the past two years.

“Banks are under an enormous amount of pressure to ensure compliance, and you’ve got increasingly complex regulations related to anti-money laundering, artificial intelligence (AI), knowyour-customer (KYC) procedures, and data privacy,” he pointed out.

Banks have been hiring more people in KYC, asset liability, and regulatory risk management, including credit, market, and operational risks, and anything

26 ASIAN BANKING & FINANCE | Q3 2025

We're seeing a number of top-tier candidates take opportunities with competitors that offer a more streamlined and efficient hiring experience

tech-related, according to British recruitment company Robert Walters Plc. Relationship managers continue to be in demand, especially those with “strong client networks,” said Elaine Chu, senior manager of financial services at Robert Walters Hong Kong.

It’s not just banks that are cautious. Job candidates have also started to consider bank stability before jumping ship, she noted.

“We’re seeing a lot more candidates who have been more reserved than they were, but also because the [pay hike] increments have become smaller as well,” she said in an exclusive interview with Asian Banking & Finance.

Meanwhile, lenders in Hong Kong might have to stop requiring job applicants to speak Mandarin, at least for some roles.

“When you actually look at the roles that they’re talking about, the

majority of those people will speak English,” Sheffield said. “There are a number of institutions that we work with where that process is probably three, four times longer than it was, and it's because of a mandate on Mandarin.”

“When you drill down into that, they cannot justify why it's there,” he added. Sheffield said about 70% of Hong Kong’s talent pool comes from Mainland China.

Change in seniority Chu said most banks in Hong Kong are adjusting their hiring methods instead of reducing. “[For some], the seniority has changed. If a vice president leaves, they might hire an assistant vice president, and if an assistant vice president leaves, they’ll hire an associate,” she added.

“We are seeing a lot more internal applicants—direct applicants from the banks themselves,” she added.

The banking industry hired more than they cut last year, with 15 banks adding 2.5% more workers to 70,611, according to the latest bank ranking survey by Asian Banking & Finance. This is faster than the 0.16% growth in

HSBC continues to be the biggest employer with around 20,000 employees (Photo from HSBC)

BANK RANKINGS: HONG KONG

Robert Sheffield

Lenders might have to stop requiring Mandarin for some roles

2023 covering the same 15 banks plus Standard Chartered Bank Plc, which did not participate in this year’s survey.

Tai Sang Bank Ltd., Hong Kong’s smallest lender, and homegrown Hang Seng Bank, now owned

by The Hongkong and Shanghai Banking Corp. Ltd. (HSBC), logged the fastest hiring growth at 40% and 19% respectively.

Hang Seng Bank added more than 1,300 people to 8,328, whilst Tai Sang increased its headcount by 14 to to 49.

The Asia-Pacific unit of HSBC Holdings Plc continued to be the biggest employer in Hong Kong’s banking sector with about 20,000 workers, the same as in 2023.

Apart from Hang Seng Bank and Tai Sang Bank, five other lenders hired more last year— Bank of China (Hong Kong) Ltd., Shanghai Commercial Bank, Chong Hing Bank, CMB Wing Lung Bank, and Public Bank (Hong Kong) Ltd. Dah Sing Bank, one of the two remaining family-owned banks in the city, reported the fastest job cut of of 6.9%, according to the survey.

Industrial and Commercial Bank of China (Asia) and China Construction Bank (Asia) also had fewer employees, the latter based on the overseas worker count in its annual report.

IPO jobs Chu cited the rise of contract hiring not just in the banking sector but across all sectors, whilst pay hikes were lower.

“Most of the increments are around 10%–15%,” she said. “Realistically, during a good market, we’re looking at approximately 20%.”

Sheffield said automation of key business processes is starting to affect banks’ hiring attitudes.

“A lot of outsourcing and offshoring and generalist roles without specific in-demand expertise are being removed from organisations,” he said, citing the use of generative AI in the middle and back offices.

Hiring by investment bankers was slow as global deal volumes remained subdued.

“There is demand for topperforming deal makers, and there’ll be aggressive hiring sprees on occasion, but that’s going to be far less prevalent,” Sheffield said.

According to Chu, said positions related to initial public

Elaine Chu

offerings (IPO) have been opened amidst a listing resurgence.

In the first half, Hong Kong’s IPO proceeds were projected to have jumped more than eightfold to $14b (HK$108.7b) from a year earlier, accounting for 24% of the total globally and putting it at the top spot, according to data from Ernst & Young Global Ltd. (EY).

Mainland Chinese companies seeking to unlock growth via dual listing are driving the city’s listing report released in June.

The Hong Kong IPOs of several A-share listed companies or their spin-offs boosted the average proceeds by more than fivefold year on year, according to an EY June report.

The average IPO proceeds during the period ranked second among all first-half periods in the past decade, only trailing behind the exceptional performance in 2021, it added.

Hang Seng Bank logged one of the fastest hiring growths at 19%

Largest Asia-Pacific ECM deals

Source: LSEG

ASIAN BANKING & FINANCE | Q3 2025 27

BANK RANKINGS: HONG KONG 2025 Ranking

Bank

Number of employees (End-2024)

Number of employees (End-2023)

Percentage change

CEO or Country Head

1

HSBC

20,000

~20,000

0%

Luanne Lim

2

Bank of China (Hong Kong)

12,181

12,024

1.31%

Sun Yu

3

Hang Seng Bank

8,328

6,997

19.02%

Diana Cesar

4

The Bank of East Asia, Ltd.*

4,883

4,883

NO DATA

Adrian and Brian Li

5

Citibank (Hong Kong)**

4,500+

4,500+

NO DATA

Avenline San

6

DBS Bank (Hong Kong)*

4,500

4,500

NO DATA

Sebastian Paredes

7

Industrial and Commercial Bank of China (Asia)

3,014

3,078

-2.08%

Wu Long

8

OCBC Bank (Hong Kong)*

2,575

2,575

NO DATA

Wang Ke

9

Dah Sing Bank

2,501

2,340

-6.88%

Harold Wong

10

Shanghai Commercial Bank

1,983

1,913

3.66%

Wallace Wing-ted Lam

11

Chong Hing Bank

~1,800

1,753

2.68%

Zhong Jianxin

12

CMB Wing Lung Bank

1,748

1,698

2.94%

Jun Liu

13

China Construction Bank (Asia)***

1,307

1,365

-4.25%

Jun Zhang

14

Public Bank

1,242

1,202

3.33%

Chong Yam Kiang

15

Tai Sang Bank

49

35

40%

Ma Ching Kuen

70,611

68,863

Footnotes: *Numbers retained from 2023 Bank Rankings survey **Numbers retained from 2024 Bank Rankings survey ***Based on China Construction Bank's overseas employee count listed on their 2024 annual report Notes: (1) Standard Chartered has opted not to participate in this year's survey. The latest numbers provided by Standard Chartered was for end-2022, when they were reported to have 6,000 employees in the city. Last year's rankings have been adjusted with the nonparticipation of SC. (2) Last year's HSBC numbers were reported at 26,000. However, this number included Hang Seng Bank's employee count. We have adjusted this year's ranking to reflect the proper estimates.

(3) China Construction Bank (Asia)'s 2023 employee count have been corrected to 1,365.

28 ASIAN BANKING & FINANCE | Q3 2025

ASIAN BANKING & FINANCE | Q3 2025 29

FINANCIAL INSIGHTS: FINANCIAL FRAGMENTATION

SWIFT cites high cost of splintered financial world Many digital payment platforms remain disconnected from each other.

QR PH still does not accept Apple Pay as a payment method

APAC

R

egulatory differences, emerging digital assets, and outdated banking infrastructure are leading to a more fragmented financial world, with projected economic losses of as much as $6.5t by 2030, according to Belgium-based cooperative SWIFT SC. Whilst there are now dozens of ways to pay and transfer money across borders, many of these platforms remain disconnected from one another, Kevin Wong, CEO at SWIFT Asia Pacific, told Asian Banking & Finance.

“Financial fragmentation in 2025 is being driven by regulatory divergence and a lack of interoperability between financial systems,” he said.

Fragmentation adds friction to international trade and hinders global economic growth, with projected economic losses of as much as 6% of global economic output five years from now, according to a January report by the Economist Impact

30 ASIAN BANKING & FINANCE | Q3 2025

commissioned by the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

Almost 280 million fewer jobs will be created, innovation slows, financial inclusion efforts are hindered, and overall risk and uncertainty may rise, according to the research.

“Siloed banking infrastructures and inconsistent adoption of industry standards like ISO 20022 continue to contribute to fragmentation and increased transaction costs across borders,” Wong said.

Additional complexities Many of the payment options in Southeast Asia remain disconnected internationally. For example, QR PH—the Philippines’ standardised quick-response code system based on the Europay-Mastercard-VISA standard—still does not accept Apple Pay as a payment method.

This leads to “digital islands,” where different financial ecosystems operate independently, creating inefficiencies

Financial fragmentation in 2025 is being driven by regulatory divergence and a lack of interoperability between financial systems

Kevin Wong

and trade barriers, he pointed out.

Banks also have to deal with higher regulatory costs that they pass on to consumers, he added.

“The emergence of new digital assets and currencies is also introducing additional complexity, particularly in the absence of unifying standards or seamless integration with traditional systems,” Wong said.

Central bank digital currencies (CBDC), for example, could worsen fragmentation just as much as they can streamline payments.

“Currently, 134 markets are exploring CBDCs, and whilst the scale is impressive, without interconnectivity between platforms, global adoption is set to remain fragmented,” he pointed out.

Ensuring stability According to Wong, the industry should work with policymakers whilst developing a common standard for cross-chain interoperability to ensure “smoother and more efficient crossborder transactions.”

In Europe, for example, the European Securities and Markets Authority wants greater powers to align financial rules within the European Union, simplify compliance and enhance market integration, Wong told the magazine.

“Furthermore, international bodies emphasise the importance of collaboration amongst financial powers to ensure stability, including transparent data-sharing and inclusive decision-making to prevent system fragmentation,” he added.

Banks can improve the payment experience by working with other lenders in detecting and preventing fraud to boost confidence in digital transactions, Wong said.

“By using federated learning, banks can train AI (artificial intelligence) models on their own data and share the learnings without sharing the data itself, thus maintaining data confidentiality,” the CEO added.

By improving fraud detection, banks can foster greater confidence in digital transactions, encouraging the broader adoption of integrated financial solutions​, he said.

A report by Economist Impact, commissioned by SWIFT, warned that financial fragmentation can lead to nearly 280 million fewer jobs globally and $6.5t in economic losses.

C

M

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CM

MY

CY

CMY

K

ASIAN BANKING & FINANCE | Q3 2025 31

FINANCIAL INSIGHTS: STABLECOINS BILL

Stablecoins bill brings stricter oversight, opportunity to Hong Kong The digital tokens could support cross-border payments and smart escrow.

HONG KONG

H

ong Kong’s recently passed Stablecoins bill raises the bar on transparency and compliance, whilst unlocking opportunities for innovation in the digital asset space, analysts said.

“Issuers will need to overhaul treasury transparency, implement robust real-time reserve attestations, and establish clear redemption mechanisms,” Elena Tzvetinova, chief operating officer at Reasoon Ltd., a London-based artificial intelligence fintech, told Asian Banking & Finance.

Stablecoin issuers should be clear about the reserves backing their tokens and provide mechanisms for users to redeem them for cash. Many, however, may fall short of meeting the bill's standards.

“Many lack sufficient internal controls or risk frameworks that meet the bill’s standards,” Tzvetinova said.

Eunice recently rolled out a stablecoin due diligence and monitoring solution designed to support compliance and risk oversight.

Banks are expected to reassess their exposure to stablecoins and review ties with third-party providers to avoid unintentional noncompliance, she told the magazine.

About the bill Passed in May 2025, the Stablecoins bill will require any person or entity that issues fiat-referenced stablecoins—digital tokens pegged to currencies like the US dollar or Hong Kong dollar—to get a licence from the Hong Kong Monetary Authority.

Only licensed issuers can advertise or sell stablecoins to retail investors in Hong Kong. The regime aims to enhance investor protection and public confidence in the digital asset sector, according to the central bank.

Tzvetinova said the law could position Hong Kong as a launchpad for bank-grade, interoperable stablecoins and serve as a gateway for regional digital currency initiatives.

Banks are already responding. ZA

32 ASIAN BANKING & FINANCE | Q3 2025

Elena Tzvetinova

Calvin Ng

Cyrus Tong

Bank Ltd.—Hong Kong’s first virtual bank—has taken the lead by offering stablecoin reserve banking services since 2024 and is in talks with several potential issuers.

“We are prepared to meet diverse development needs as the market evolves,” Calvin Ng, CEO at ZA Bank, said in a separate interview.

“The passage of the bill has injected confidence into the market, signalling a clear regulatory direction and paving the way for responsible innovation,” he said. “It has encouraged active engagement and strategic planning amongst industry players," he added.

Possible key challenges Standard Chartered Hong Kong earlier said it plans to launch a Hong Kong dollar-backed stablecoin in partnership with Animoca Brands Corp. Ltd. and Hong Kong Telecommunications Ltd. Tzvetinova sees new product potential for banks—from integrating

stablecoins into existing products to partnering on issuance and developing products and platforms.

Cyrus Tong, chief compliance officer at DCS Card Centre Pte. Ltd., said stablecoins could support crossborder payments, programmable wallets, tokenised assets, smart escrow, and loyalty programme.

“This could streamline settlements, reduce [foreign currency] friction, and attract institutional investors seeking regulated digital alternatives,” he said.

However, Tong warned of key challenges. “Interoperability with other regimes is critical to avoid fragmentation,” he said, adding that emerging risks such as cybersecurity threats and liquidity mismatches need regulatory attention.

Tzvetinova noted that whilst some issuers might exit the market, those who remain will be better positioned.

Companies committed to Hong Kong would likely invest in infrastructure and compliance, she added.

The bill requires fiat-referenced stablecoin issuers to get a licence from the Hong Kong Monetary Authority

ASIAN BANKING & FINANCE | Q3 2025 33

SECTOR REPORT: CASH MANAGEMENT

Companies seek real-time liquidity management to avert cash-flow crisis There is increased corporate demand for liquidity and risk coverage, says HSBC.

Some companies mull over opening overseas packaging centres

APAC

M

ore companies want to be able to manage their cash in real time in the face of a global trade war that could snarl financial planning, disrupt supply chains, and drive up operational costs, according to analysts.

At the top of corporate clients’ concerns these days is real-time cash and liquidity management, Patrick Zhu, managing director and regional head of corporate sales for the AsiaPacific region at HSBC Holdings Plc’s Global Payments Solutions, told Asian Banking and Finance.

“The faster you can act in response, the more you can mitigate evolving external policy changes,” he said. Some companies also want to graduate from being just exporters by expanding overseas, he added.

“They are starting to think that maybe they should have an overseas packaging centre, or a centre that can process the final assembly work,” Zhu said. “For them, it’s very high risk—venturing and setting up operations, incorporating as a local firm, even hiring local staff.”

Some companies are thinking of revamping their supply chains by expanding to different parts of 34 ASIAN BANKING & FINANCE | Q3 2025

The faster you can act in response, the more you can mitigate evolving external policy changes

Patrick Zhu

Abhishek Chopra

the world, especially after the US announced "punitive tariffs" in April, said Abhishek Chopra, head of Global Trade Solutions at HSBC for North Asia excluding China.

There have also been talks of shutting down some business units, though all these plans have been paused after the US and China agreed to suspend most tariffs on each other’s goods, he added.

“With the pause agreed between China and the US, there is a lot of buzz coming back,” he said. “The container shipment booking has gone up a lot,” he added, after earlier citing a double-digit drop in bookings after United States President Donald Trump announced sweeping reciprocal tariffs.

Chopra told the magazine that their clients had been preparing for the global trade war since November 2024, although Trump’s tariff announcement at the start of April still threw them in a loop.

He said companies have been front-loading their supplies of goods and services in the past five months.

“People are smart enough to kind of change their supply chain tactics to serve particular countries, both on

the export and import side.”

Chopra cited increased client demand for risk underwriting and letters of credit and guarantee from offshore sellers. “People are looking for liquidity. People are looking for assessment or coverage of their risks.”

More companies are also demanding cross-border liquidity solutions, such as a virtual notional cash pools for different currencies, Zhu said. E-commerce solutions and business-to-business trading are also on the rise, he added.

Chopra and Zhu see global trade and investment activities shifting more towards Southeast Asia to avoid high tariffs.

“We have seen the Chinese going more into the Middle East,” Chopra said. “We have seen large Korean, Japanese and Chinese companies invest in ASEAN (Association of Southeast Asian Nations).”

Zhu said markets are watching the service industries, which the Trump government has yet to touch as far as tariffs are concerned.

Affected sectors Automakers and part suppliers are feeling the most heat from the tariffs, according to a June 2025 report by S&P Global Ratings.

More broadly, lenders in the Asia Pacific region may choose to pull their capital out of emerging markets in the region due to the mounting geopolitical tensions.

“Lenders could turn risk-off and seek safe havens, causing capital outflows from emerging markets— compounding volatility in capital markets and currencies.

We see geopolitical risk as high and worsening for Asia-Pacific and globally,” S&P Global Ratings warned in a June 2025 report.

"Higher export costs will eat into margins, and weaker sentiment will limit spending by businesses and households. This will drag on growth prospects," said Eunice Tan, head of Asia-Pacific credit ratings research at S&P Global Ratings.

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ASIAN BANKING & FINANCE | Q3 2025 35

SECTOR REPORT: ISLAMIC BANKING

Islamic finance grows in non-Muslim markets with demand for ethical investing State support, population trends, and ethical investing are spurring the demand.

GLOBAL

N

on-Muslim markets that seek transparency and want to avoid harmful or unethical industries are turning to Islamic finance, whose assets are expected to grow 36% to $7.5t by 2028, according to Standard Chartered Plc. The growing number of young and Muslim people in countries like Indonesia, Pakistan, Egypt, and across Sub-Saharan Africa, apart from a state push for Islamic banking, is also fuelling the growth, the British bank said in a May report.

“Islamic neobanks, crowdfunding, and blockchain platforms are enabling ease of accessibility and convenience amongst youth and the unbanked populations,” Khurram Hilal, CEO of Standard Chartered Saadiq, told Asian Banking & Finance.

Established leaders like Malaysia and emerging markets like Brunei, Indonesia, Singapore, and Hong Kong are also driving innovation in Islamic financial products in Asia, he told the magazine.

In 2024, the global Islamic finance

Islamic neobanks, crowdfunding, and blockchain platforms enable ease of accessibility and convenience amongst youth and the unbanked

Khurram Hilal

Islamic finance assets are expected to grow 36% to $7.5t by 2028

36 ASIAN BANKING & FINANCE | Q3 2025

industry’s assets rose 12% to $5t from a year earlier, the British lender said, citing data from the London Stock Exchange Group.

About the system Islamic banking is far more limiting than ESG (environmental, social, and governance) finance, according to a report by PricewaterHouseCoopers.

For example, Islamic finance has a strictly defined industry and prohibits interest and certain products such as alcohol, whilst transactions must be backed by tangible assets. Both principles emphasise environmental protection, equality, social justice, and economic prosperity.

Many countries have integrated Islamic finance into their national financial strategies in the past four years, including those that are not members of the Organisation of Islamic Cooperation, Hilal said.

“Central banks in countries like the United Arab Emirates, Bahrain, Pakistan, and Malaysia have established dedicated Islamic finance frameworks and governance

regulations,” he pointed out.

But there are also challenges, including complex and conflicting regulations across territories, he said.

“Tariffs and trade disputes can lead to market volatility, affecting the performance and attractiveness of Islamic finance products,” he added.

More regulatory support Hilal cited the need for more shariahcompliant capital markets to boost Islamic banking’s appeal, aside from giving incentives to companies that issue sukuk or Islamic bonds.

He said enforcing regulations for Islamic finance could be disruptive due to the “intricate interplay between religious principles, legal systems, and market practice.”

The proposed shift from assetbased to asset-backed transactions could lead to inconsistent implementation across jurisdictions, he told the magazine.

An asset-based bond is owned by the investor though control is with the issuer. On the other hand, under an asset-backed Islamic bond, investors truly own the underlying asset, which is legally transferred to a special purpose vehicle.

“Besides regulatory complexities, Islamic finance faces few other challenges, including the lack of a unified global standard and varying interpretations of shariah principles across countries, leading to inconsistent offerings,” Hilal said.

He cited the need for more techbased infrastructure and funding for Islamic fintech innovation.

The chief executive noted that despite growing interest in Islamic banking, awareness remains low, along with misconceptions that it is exclusive to Muslims.

“The industry needs more support in embedding Islamic banking education into mainstream agendas and professional certifications such as CFA (chartered financial analyst), CPA (certified public accountant), and others,” he added.

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ASIAN BANKING & FINANCE | Q3 2025 37

CASE STUDY: DCS CARD certain conditions are met. Banks like JPMorgan Chase & Co. and DBS Bank Ltd. are exploring this, and Leng sees it as a step towards better system integration.

“All in all, the interoperability between economies will continue to grow,” she said. “Consumers can expect better transaction speed and more optimal cost.”

The new DCS card allows users to instantly convert between stablecoins and Singapore dollars (Photo from DCS)

DCS launches card for cash access on stablecoins

A stablecoin conversion card offers a bridge between crypto and cash.

SINGAPORE

D

CS Card Centre Pte. Ltd is embracing digital asset innovation as superapps, fintechs, and blockchain technology transform the payment landscape.

“The broader payment ecosystem is undergoing a rapid shift in standards, and that is very much propelled by the rise of digital banks and fintechs,” Dayna Leng, chief marketing officer at DCS Card Centre, said in an interview with Asian Banking & Finance.

Leng noted that the shift isn’t limited to traditional financial institutions.

“They're all coming up with super apps—proprietary wallets like ShopBack Pay, Shopee Pay, GrabPay, and BNPL (buy now, pay later) options even in nonfinance apps,” shetold the magazine. “All of this is moving towards creating this new level of standard for financial institutions.”

DCS, formerly Diners Club Singapore, has expanded beyond issuing credit and charge cards to include broader payment solutions 38 ASIAN BANKING & FINANCE | Q3 2025

All in all, the interoperability between economies will continue to grow

Dayna Leng

and, more recently, Web3 services.

Fluid payment space introduced a DCS Card that lets users instantly convert stablecoins into Singapore dollars. This means customers can spend their digital assets directly, while merchants still receive payment in fiat currency.

“For Web3 community [members] who really want to have cash on hand from the stablecoins that they owned, they can do that through a physical card,” Leng explained. “They can withdraw from the ATM.” She said the payment space is now more fluid than ever, as digital tools blur the lines between traditional finance and decentralised systems.

“We have gone from debit to credit to mobile to digital, from operating within the traditional finance ecosystem to dual real payments across both [traditional finance] and Web3 economies,” the chief marketing officer said.

This shift includes programmable tokens—smart contracts that make payments automatically when

Regulatory support But as digital payments grow, strong regulations are needed.

“Everything needs to be regulated first,” Leng said, She added that the digital payment landscape will evolve, but institutions should ensure it stays responsible.

DCS is entering Web3 to stay relevant as the payment landscape rapidly changes. With users wanting fast, borderless payments, Leng believes digital and decentralised tools will keep changing how money moves.

DCS’s entry into Web3 is part of its strategy to stay relevant in a fastchanging environment. With users demanding real-time, borderless payments, Leng thinks digital and decentralised solutions will continue to reshape the way money moves.

“At the end of everything, the foundation is that everything needs to be regulated first. The digital payments landscape is going to evolve, but there’s going to be strong institutional involvement to enable a responsible digital lifestyle,” she said.

In an earlier interview by Asian Banking & Finance, several payment firms predicted that stablecoins have a chance of expanding in 2025 amidst changes in global rules.

“With the introduction of MiCA in Europe and expected regulatory frameworks in the US, Stablecoins are set to gain wider acceptance,” said Maxim Neshcheret, regional director for the Asia-Pacific region at Stockholm-based payment solution provider CMA Small Systems AB. 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, according to TR Ramachandran, head of products and solutions for the Asia-Pacific region at Visa.

ASIAN BANKING & FINANCE | Q3 2025 39

CASE STUDY: OCBC

OCBC launches AI stock adviser trained on 4,000 global listings AI Oscar uses more than a decade's worth of data to predict equity prices.

O

HONG KONG

CBC Bank (Hong Kong) has launched a stock advisory service that uses artificial intelligence (AI), predicting and identifying stock price movements.

Starting March, OCBC customers in the city have started getting emails filled with stock trading ideas compiled by the AI tool called AI Oscar or OCBC Securities’ Customer Artificial-Intelligence Radar.

It uses a deep learning algorithm to identify and predict stock market movements, helping investors see potential opportunities across thousands of stocks in major markets, Josephine Lee, head of consumer financial services at OCBC Hong Kong, told Asian Banking & Finance in an interview.

“AI Oscar has undergone extensive training using over a decade’s worth of data from more than 4,000 stocks listed on the SGX, Hong Kong Exchange, NASDAQ, New York Stock Exchange, and NYSE American,” she said. “The data set is updated daily, ensuring that the model is kept current.”

Positive feedback The AI stock adviser offers clients lesser known stocks that may have been overlooked but have investment potential, she pointed out.

Feedback has been very positive since launch, Lee said. “Customers appreciate the stock ideas provided by the tool, finding them to be valuable references for their trading decisions.”

The service is available to customers in Singapore, Hong Kong, and Macau. Lee said they would expand the coverage to other global equity markets such as the US. OCBC also plans to roll out AI Oscar functionalities into their trading app through the email notification service, she added.

AI Oscar has been sending regular trading ideas on Hong Kong stocks via email to OCBC’s customers since March 2025.

“Clients recognise the advantages 40 ASIAN BANKING & FINANCE | Q3 2025

AI Oscar offers clients lesser known stocks that are overlooked but have investment potential (Photo from OCBC)

Customers appreciate the stock ideas provided by the tool, finding them to be valuable references for their trading decisions

Josephine Lee

of AI in sifting through vast amounts of data to highlight timely investment opportunities,” Lee said.

This data-driven insight not only complements their existing perspectives but also serves as a catalyst for engaging discussions between our customers and trading representatives, she added.

“These benefits are especially pronounced amongst active investors and those who prefer a self-directed approach to investing," she noted.

New services The Singapore-headquartered bank has been rolling out new services in its Hong Kong business.

In July 2025, it established a new department focusing on lending to serial entrepreneurs in Hong Kong.

The bank said that it is gearing up to launch a financing proposition aimed for serial entrepreneurs in Hong Kong by end-2025.

Moreovoer, OCBC's whollyowned subsidiary Bank of Singapore (BOS) recently unveiled a new asset allocation framework.

The framework adopts what it calls a “robust optimisation” technique, which aims to create investment portfolios adapted to withstand market uncertainties.

The Bank of Singapore said that the framework was developed after a year-long study and stress-testing of 120,000 portfolios.

Globally, financial institutions have raised their spending for AI, particularly generative AI, as they chase benefits like productivity and revenue growth, according to a study by Forrester. In 2024, McKinsey & Co. estimated gen AI alone could bring the banking industry as much as $340b a year in additional value.

On separate news, OCBC named Tan Teck Leong as its incoming group CEO beginning 1 January 2026. Incumbent chief Helen Wong is retiring by the end of the year. Tan is head of global wholesale banking in OCBC, joining the bank in March 2022. He was previously chief risk officer for DBS Bank from July 2018 to December 2021.

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EVENT NEWS: ASIAN BANKING & FINANCE SUMMIT - MALAYSIA

Malaysia’s development banks told to plug lending gap for MSMEs Productive sectors need more capital to stimulate the slowing economy.

MALAYSIA

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alaysia’s development banks should step up loans to small businesses in the face of a global trade war that puts economic growth, jobs, and wages at risk, experts said.

These loans will come in handy as private banks turn cautious during the “economic turmoil,” according to Mohd Prasad Hanif, secretary general of the Association of Development Finance Institutions Malaysia (ADFIM).

“Most private commercial entities will be reluctant to lend out [to these sectors],” he told the Asian Banking & Finance and Insurance Asia Summit Malaysia 2025 in Kuala Lumpur. “This riskier segment will still have to pay back the financing.”

S&P Global Ratings has cut its growth forecast for Malaysia by 40 basis points to 4.5%, citing a weaker outlook on global trade and higher US tariffs on semiconductors.

Growth slowed to 4.4% in the first quarter from 5% a quarter earlier.

Main challenge Development banks are mandated to extend financing to micro, small, and medium enterprises (MSME) and productive sectors such as agriculture and exporters.

They are expected to help fill the more than $21.5b in the MSME funding gap in Malaysia, based on 2024 data from the SME Finance Forum. These financial institutions increased lending to target sectors by 5.8% in the second half of last year from a year earlier.

US President Donald Trump has announced sweeping reciprocal tariffs on its trade partners, notably 125% on China. Malaysia was also hit with a 24% reciprocal tariff before Trump delayed the duties for 90 days in mid-April.

The Malaysian Institute of Defense and Security said the US tariffs could lower the Southeast Asian nation’s export growth by 1.3 to 5.8 percentage points.

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Most private commercial entities will be reluctant to lend out [to these sectors]

Hanif said the main challenge for development banks is keeping their bad loans low whilst still being profitable, and lending at rates at par or lower than private bank loans.

Malaysian Industrial Development Finance (MIDF) Malaysia, one of its dozen development banks, has kept its bad loan ratio at less than 1%, whilst giving out loans to the manufacturing sector at 2% interest, Hanif told the summit attendees.

He said the government should ease bureaucratic red tape in loan approvals and make these banks, which are managed by the central bank, independent enough. “[The government] has to allow development financial institutions to be able to make decisions fast — perhaps as fast as the private commercial sector — so that they are able to adapt in these turbulent times as well,” he continued.

Otherwise, these banks won’t be able to perform their mandate, which is to provide specialised financial services crucial for the country's socioeconomic and development goals, the secretary general added.

Mohd Prasad Hanif, secretary general at ADFIM

Apart from development banks, Malaysia’s newly-launched digital banks are expected to service underserved and unbanked populations, including SMEs. But scaling up lending activity remains a challenge for the digital lenders due to their intended target segment of underserved and unbanked Malaysians presenting both operation and credit risks, according to UOBKH analyst Keith Wee Teck Keong.

“Many in this segment may lack the digital literacy to engage fully with app-based platforms, whilst their credit profiles may raise asset quality concerns,” Wee said in a report released in June 2025.

Overall, the banking sector is expected to log a loan growth of between 5% to 60% in 2025, according to UOBKH estimates.

Loan growth improved to 5.3% in May 2025, from 5.1% in April, driven by stronger construction loans. This was offset by a “slight deceleration” in working capital loans growth.

ASIAN BANKING & FINANCE | Q3 2025 43

EVENT NEWS: ASIAN BANKING & FINANCE SUMMIT - MALAYSIA

Banks rethink messaging for Gen Z’s eight-second attention AI can help financial institutions’ marketing teams get the job done.

Jeff Wee, senior solution consultant at Adobe

MALAYSIA

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he most effective marketing campaigns should bring the right message within eight seconds, and artificial intelligence (AI) can help financial institutions do just that, according to an Adobe, Inc. consultant.

“AI is no longer just a buzzword, but a real lever to elevate experience and deal with problems,” Jeff Wee, a senior solution consultant at Adobe, told the Asian Banking & Finance and Insurance Asia 2025 Malaysia Summit in April.

Right message Sending the right message to customers at the right time is critical especially in an era of shrinking attention spans, he pointed out.

“The average attention span of a Gen Z individual is now down to just eight seconds,” Wee said. “It’s even shorter than the attention span of a goldfish," he added.

“We need to ensure we send the right message to the right person at the right time, and be able to do this automatically and at scale,” he told the summit attendees.

Adobe, known for Adobe Photoshop, its flagship software for 44 ASIAN BANKING & FINANCE | Q3 2025

AI is no longer just a buzzword, but a real lever to elevate experience and deal with problems

photo editing and graphic design, uses AI through its Adobe Sensei platform to automate complex tasks like image editing, content tagging, and personalised marketing.

According to Wee, marketing teams that use artificial intelligence have reported a 40% productivity boost in terms of campaign targeting and customer experience.

He cited the slow adoption of generative AI (genAI), which he attributed to customer trust issues, brand control, integration, and transparency. Adobe’s solution is to offer models that companies can control and train to speak their brand language, he added.

“So they follow your brand guidelines and stick with your compliance systems,” he said.

“Whether you are in retail banking or insurance, consistency and compliance are no longer issues.”

For data safety, Adobe’s genAI engine is trained on licensed or authorised data from its more than 300 million stock images and photos, making it “functionally safe,” Wee said. “So data, content, and journey can be moved together at the same time, in synchronisation.”

Financial companies have taken note of Gen Z’s changed expectations, particularly their need for speed. A May 2025 study

by Mastercard showed that Gen Z consumers are 2.5 times as likely as baby boomers to say they want a speedy online purchase journey.

Gen Z consumers see personalisation as “significantly more important” than it is for the average consumer, wrote Vicki Hyman, communications director for Mastercard, in an online article posted in May 2025.

From a financial perspective, their spending power is expected to grow to $12t by 2030, according to a 2024 report by NielsenIQ, GfK and World Data Lab. They also spend more per capita than any other generation had at the same age, making their loyalty key to retailers, brands and banks, Hyman continued.

Maintaining loyalty But keeping Gen Z customers loyal to one bank would be a harder endeavour than other generations, according to analysts.

“In our [Asia-Pacific] survey, we asked: ‘What’s your most trusted bank?’” Il-Dong Kwon, managing director and a partner at Boston Consulting Group (BCG), told the Asian Banking & Finance and Insurance Asia Summit in Ho Chi Minh City on 13 May. “Half of them are saying ‘the new digital bank.’”

“They’re growing up with [digital banks],” Kwon said, adding that the convenience, choice, value and hyper-personalisation offered by digital and fintech players have become the norm for them.

In Vietnam, however, the Gen Z segment are also the least satisfied, Nguyen Tuan Hong Phuc, a partner at KPMG International Ltd. in the Southeast Asian nation, told the summit audience.

“What [Vietnam] consumers are saying is that they find loan procedures quite complex,” Nguyen said. “They’re also disturbed by telesales, a lot of calls from companies, probably reminding them of due payments.”

Their key pain points for financial services are high fees, time-consuming and complicated handling processes, he said.

ASIAN BANKING & FINANCE | Q3 2025 45

OPINION

MOHD FAIZUDDIN, ARIF FADILAH, MUHAMMAD HAFIZ Young Malaysians, big money mistakes

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alaysia has come a long way in promoting financial inclusion. With more than 96% of adults now having access to formal financial services, up from just 46% in 2011, the country is often praised as a model in Southeast Asia.

But here’s the twist: despite this impressive progress, many Malaysians, especially the younger generation, still struggle when it comes to managing their money wisely and in line with Islamic principles.

Recent reports highlight the nation’s inadequate retirement savings, with nearly half of Employees Provident Fund members under 55 holding less than $2,310 (RM10,000) in their accounts. Rising living costs, slow wage growth, and limited financial literacy worsen the problem, leaving many individuals financially vulnerable despite broad financial inclusion.

Moreover, whilst insurance penetration in Malaysia has climbed to 40%, participation in family takaful remains significantly lower at just 20%, raising questions about why many Muslims hesitate to adopt Shariahcompliant financial products. These gaps point to a deeper need to understand and improve Islamic financial behaviour amongst Malaysia’s young adults.

A recent study has peeled back the layers of this issue, focusing on university students in Malaysia, and uncovered some surprising truths about what really drives Islamic financial behaviour. It turns out that it’s not just about knowing the rules of Islamic finance; confidence and family influence play a much bigger role than many of us might expect.

MOHD FAIZUDDIN MUHAMMAD ZUKI Senior Lecturer Universiti Utara Malaysia MUHAMMAD ARIF FADILAH ISHAK Lecturer UCYP University MUHAMMAD HAFIZ HASSAN Lecturer UNISIRAJ

Why financial literacy alone isn’t enough Surprisingly, Islamic financial literacy, the understanding of key Islamic finance concepts such as riba (interest), halal investments, and Shariah-compliant banking, wasn’t the strongest predictor of good financial behaviour. “This finding really caught us off guard,” said one of the researchers. “We have always assumed that knowledge is power, but in this case, knowledge alone was not translating into action.”

So, if simply knowing the dos and don’ts of Islamic finance isn’t enough, what makes the real difference?

One of the standout findings was the power of parental financial socialisation, in simpler terms, how parents teach and model financial behaviour for their children. Students who reported that their parents regularly talked about money, showed them how to save, and demonstrated ethical financial habits were much

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more likely to manage their finances in ways that align with Islamic principles.

“This really reinforces the idea that financial habits are shaped at home,” the study noted. “When parents openly discuss budgeting, saving, and responsible spending, they’re not just passing on knowledge, they’re instilling values and habits that stick.”

Indeed, one student shared, “My parents always taught me to avoid debt and to save for big purchases.

I’ve carried those lessons with me, and they guide how I manage my money now.”

The takeaway here is clear: if we want to raise a generation of financially responsible adults, it’s crucial to start young, and that starts at home.

Confidence is key Another major finding of the study was the role of financial self-efficacy, that is, a person’s belief in their ability to manage their own finances effectively. Students who expressed confidence in their ability to budget, save, and make informed financial decisions were far more likely to put those habits into practice.

This echoes what many financial planners have observed: confidence breeds action. “When people believe they can handle their finances, they’re more likely to take proactive steps, whether it’s starting a savings plan or investing in halal financial products,” said one financial advisor familiar with the study’s findings.

Interestingly, this sense of self-efficacy appeared to have a stronger impact than even financial knowledge.

“It’s not just what you know; it’s whether you believe you can put that knowledge into practice,” the researchers explained.

Risk attitude: less important than expected The study also looked at financial risk attitude, which measures how willing someone is to take risks with their money. In the world of conventional finance, risk tolerance is often seen as a key driver of investment and spending behaviour. But in the Islamic finance context, where ethics, compliance, and risk-sharing are emphasised over speculative risk-taking, risk attitude played a much smaller role than expected.

This makes sense when you consider that Islamic finance principles discourage high-risk speculation (gharar) and prohibit interest-based transactions (riba).

As a result, ethical and religious considerations may outweigh personal risk preferences in financial choices.

ASIAN BANKING & FINANCE | Q3 2025 47

OPINION

NICOLE ZHOU

Beyond the code: How mobile banking is weaving a new financial narrative in Asia

I

n the digital age, banks are sitting on a goldmine of customer data. It’s time they started using it to anticipate needs and offer hyper-personalised solutions before customers even ask.

For too long, banks have treated their mobile apps as mere extensions of their physical branches—digital storefronts for traditional banking services.

They’ve added features in a piecemeal fashion, often mimicking the latest fintech trend without truly integrating it into a holistic customer experience. They boast about “personalisation,” which often amounts to little more than targeted ads for products you might already be considering. But this reactive approach is woefully inadequate in today’s increasingly complex financial landscape.

The real opportunity lies in harnessing the power of data and artificial intelligence to create a proactive, predictive, and genuinely helpful banking experience.

Top-tier mobile banks are resolving over 80% of routine customer interactions within their apps.

These banks are not just payment platforms; they are also all-encompassing digital wallets that allow users to order food, book transportation, pay utility bills, shop for groceries, access healthcare services, and even invest in stocks—all within a single app.

NICOLE ZHOU Senior Partner McKinsey

Key capabilities setting mobile banks apart Leading mobile banks place a strong emphasis on delivering a a user-friendly and intuitive interface. This seamless design ensures that customers can navigate their financial tasks with ease, from depositing checks to transferring funds and paying bills. The app becomes a natural extension of their daily lives, enhancing the overall customer experience and fostering loyalty.

Personalisation in Asia extends far beyond basic targeted advertising. It involves a data-driven approach that puts customer behaviour and business intelligence at the centre.

These apps provide a targeted and resolution-driven experience that understands cultural nuances, language preferences, and local payment habits. For example, providing customer support in multiple dialects and languages is essential in a linguistically diverse region like Southeast Asia or China In addition, top banking apps anticipate customer needs. These can include suggesting a a better savings plan, alerting users to potential fraud, or recommending investment opportunities, these apps act as intelligent financial advisors. This predictive engagement not only enhances customer satisfaction but also builds trust and deepens the relationship between the bank and its users.

Efficiently directing customers to the most

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appropriate resources or services within the app is another key capability. By routing customers proactively, these banks create active advocates and deepen customer engagement. It ensures that users can quickly find the help they need, whether it’s customer support, financial advice, or transactional services, without the frustration of navigating a complex app.

The opportunity in Asia is immense, particularly amongst the unbanked population. Mobile banking offers a way to reach these potential customers, but doing so requires innovative solutions that address their unique needs and challenges.

Many unbanked individuals lack access to smartphones, have low levels of digital literacy, and lack a formal credit history. Banks must experiment with alternative authentication methods, such as biometric identification and voice recognition, and provide financial literacy training to help new users navigate the digital world. They also need to explore partnerships with local community organisations to build trust and overcome cultural barriers.

Proactive engagement The challenge is significant, but the rewards are even greater. By embracing a mobile-first strategy and focusing on cultural relevance, banks can unlock a massive untapped market and position themselves for long-term growth.

The bold approach involves routing customers proactively to the most appropriate channel, creating active advocates of the app and bank, and deepening customer engagement. This takes on a whole new dimension in the Asian context, demanding not only technological expertise but also deep cultural sensitivity and the flexibility to adapt to the unique needs of each market.

It demands going beyond simple translation and embracing true localisation in every aspect of the customer experience.

Hyper-localisation Asian markets are not monolithic. Each country, each region, each community has its own unique culture, language, and customs.

A successful mobile banking strategy must be hyper-localised, tailored to the specific needs and preferences of each target audience. This requires a deep understanding of local market dynamics and a willingness to invest in local expertise.

It means partnering with local businesses, community organisations, and government agencies to build trust and foster financial inclusion.

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