Digital banking, the most competitive fintech sector in SEA

digital banking SEA
Image by mentalmind | Bigstockphoto

The Digital Banking sector was found to be the most competitive in the South East Asia (SEA) region, with a score of 9,692 on the HHI (reverse) index. The fintech market in the SEA region has scored 9,643 points on the HHI (reverse) index, which is also considered highly competitive.

Robocash Group has released a report based on the usage data from 2442 financial mobile apps. The main classification metric was the Herfindahl-Hirschman economic competition index1, which indicates the degree of equal distribution of services among market participants.

Digital Banking ranked the most competitive sector in three out of the ten countries analysed2: in Brunei, Vietnam and Indonesia. The least competitive sectors are Human Resources and Payroll in Malaysia.

digital banking SEA

“Half of the fintech markets in the SEA region exhibit a high level of concentration, while the remaining 25% each are classified as moderately or highly competitive. The future of the financial services market in SEA will undoubtedly be strongly influenced by digital banking. The sector’s growth and competitiveness are expected to continue soaring, presenting both exciting opportunities and considerable challenges for all players in the landscape”, commented analysts at Robocash Group.

SEA market highly competitive

Overall, the mobile financial app market in the 10 SEA countries is a highly competitive market. Still, it is not perfectly competitive, as it lacks in the number of participants. However, over the last five years there have been some significant structural shifts that have allowed many participants to increase their market shares, thereby increasing opportunities for market competition and business growth.

The full report is available by clicking here.

Related article: Why hyper-personalisation wins in digital banking

1HHI (Herfindahl-Hirschman Index) is a common measure of market concentration. If HHI (reverse) is greater than 8500, the market is considered highly competitive, if 8500<HHI (reverse)<7500 – relatively competitive, if HHI (reverse)<7500 –  the market is highly concentrated (or monopolised).

2The countries analysed: Vietnam, Thailand, Singapore, Philippines, Myanmar, Malaysia, Laos, Indonesia, Cambodia and Brunei

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