Challenger Banks In Asia-Pacific Market Size (2024 - 2029)

APAC Challenger Banks Market Analysis

The Challenger Banks In Asia-Pacific Market size is estimated at USD 1.68 billion in 2024, and is expected to reach USD 2.58 billion by 2029, growing at a CAGR of greater than 9% during the forecast period (2024-2029).

Even though the onset of the pandemic enhanced the need for rapid tech-led transformation for the banks and financial services players, they are still being used by many people. Digital banks, also known as neobanks, challenger banks, or virtual banks, all have in common are they often started with no physical branches and leveraged technology to differentiate their offerings in the banking sphere.The virtual banks are helping a lot of people in the Asia - Pacific region to have a smooth banking experience without visiting the bank. Asia’s digital banking scene has seen rapid growth in recent years and is set to continue its growth in the months to come.

63% of banking customers in Asia-Pacific (APAC) are likely to use digital banking services offered by neobanks and challenger banks by 2025, highlighting the urgency for banks to innovate. Also many commercial places such as restauarants are now looking towards Challengers Banks as they are flexible enough, without having a need to visit any physical bank. More than 35 neobanks or challengers across APAC are built on agile innovative best practices — way ahead of incumbents in terms of flexibility, self-service capabilities, customer needs, and personalization. Consequently, with the emergence of new players and further digital disruption in the industry, 38% of traditional banks’ revenues are at risk by 2025.

Additionally, a recent report has revealed that Asian Pacific countries are becoming increasingly interested in the digital banking space, with India being home to twenty percent of the global number of digital challenger banks. The report has noted that the Indian Subcontinent has witnessed the emergence of a three-pronged attack in the space, consisting of banks' own challengers such as Bank 811 and Bank Digibank, as well as new challengers such as Network, Fi Money and FamPay, as well as Open and Jupiter, as well as ecosystem players Paytm, Razorpay.

APAC Challenger Banks Industry Segmentation

The challenger banks are set to provide a different banking experience to the customers, different from the traditional banks. A complete background analysis of the Challenger Banks Market, market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles are covered in the report.  The Challenger Banks Market in Asia-Pacific is segmentedby services offered, end-user type, and by country. By services offered, the market is segmented as Payments,Savings Products, Current Account, Consumers Credits, Loans and Others. By end-user type, the market is segmented as Business Segment and Personal Segment. By Country, the market is segmented as China, South Korea, Australia, Hong Kong, India, Indonesia, Philippines, Malaysia, Singapore and Rest of Asia-Pacific. The market size and forecasts are provided in terms of value (USD) for all the above segments.