THE Asean region, along with the rest of the world, has experienced a significant acceleration in the importance of digital technology due to the widespread impact of the Covid-19 pandemic. According to the e-Conomy SEA report by Google, Temasek and Bain & Company, Southeast Asia's digital economy surpassed $200 billion in gross merchandise value in 2022, with digital adoption continuing to rise as a result of post-pandemic acceleration. Among the key sectors driving the growth of the digital economy in the region are e-commerce, transportation and food, online travel, online media and financial services. In this op-ed, we will focus specifically on the digitalization of financial services, as embracing digital payments holds the key to unlocking Asean's digital economy by increasing efficiency, productivity, reducing costs and fostering regional economic integration.
One notable area of digital transformation within the financial services sector in Asean is the rise and revolution of digital payments. The surge in online transactions in e-commerce, coupled with limited physical interactions during the Covid-19 pandemic, has led to an increased adoption of digital payments, with the gross transactions value exceeding $800 billion in 2022. This shift from offline to online consumer behavior has prompted fintech (financial technology) players and platforms, including digital banks (digibanks), traditional banks and insurance companies, to extensively digitize their services in order to keep pace with evolving trends.
Continue reading with one of these options:
Ad-free access
P 80 per month
(billed annually at P 960)
- Unlimited ad-free access to website articles
- Limited offer: Subscribe today and get digital edition access for free (accessible with up to 3 devices)