APAC FinTech Spotlight, June 24
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Trending News
#1: South Korea prepares for a fourth digital bank
With three of Asia’s most successful digital banks, South Korea is now considering adding a fourth. Though the country was well banked before the arrival of the digital challengers, Kakao Bank, K Bank and Toss Bank have all found a way to build market share rapidly without burning an inordinate amount of cash. The former two are profitable, while the latter should reach that milestone soon. Consumer interest in digital banks in Korea is such that the market can very likely support a fourth online lender. Read more.
#2: Why Sea has a growing fintech business
Super apps in Southeast Asia have been forced in recent years to confront a harsh reality: More is not necessarily better, at least when it comes to the number of services provided by the same app. Sea Group, the most valuable listed company in Southeast Asia, has never branded itself as a super app, but its business model has sought to tap the synergies among its gaming, e-commerce and fintech arms. Recently, however, the fintech business has begun to grow rapidly – and not necessarily because of integration with Shopee. Read more.
#3: The Hong Kong crypto project just got a reality check
Ever since Hong Kong threw its hat into the cryptocurrency ring in 2022, we have been warning that inflated expectations would lead to disappointment. Crypto bros intent on selling the narrative of digital asset liberalization in China had been insisting that turning Hong Kong into a crypto hub was only the first step – next would be the mainland. Not anytime soon. In fact, some prominent crypto exchanges have decided to pull out of the former British crown colony, likely in part because they cannot serve mainland customers. Read more.
Exclusive Forbes cover by Zennon Kapron
There Are Still Many Questions About Grab’s Fintech Business
Ever since it realized that the inherent difficulties in making a profit from ride hailing, Grab has been working to build up its digital financial services offerings. While the super app value proposition looks increasingly shaky, the Singapore-based company has nonetheless developed a wide range of fintech products across Southeast Asia. Some of these offerings have been more successful than others – and Grab has, as a public company, had to exit businesses that are unprofitable and do not show significant potential. Read more.
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