TECH BUYER May 2020 - IDC Perspective - Doc # AP43052018

Challenger Banks: New Propositions for a New Age of Finance

By: Darshiniy SelvaratnamSenior Market Analyst

Table of Contents

Executive Snapshot

Figure: Executive Snapshot: Challenger Banks — New Propositions for a New Age of Finance

Situation Overview

Scope of Work

Definition

Challenger Banks

Traditional Banks

Brief History

State of Regulator Readiness in Asia/Pacific

China

South Korea

Australia

Hong Kong

Taiwan

India

Indonesia

Philippines

Malaysia

Singapore

Challengers' Deployment of Advanced Technology

Modular Core Banking System

Table: Noted Tech Suppliers for Modular Core Banking Systems

Cloud Considerations

Frictionless Digital Onboarding

Table: Noted Tech Suppliers for Digital Onboarding

Instant Credit Decision Making

AI and ML

Challengers' Tech Partners

Table: Tech Partners of the Challengers

What Challengers Do Best

WeBank — China

Figure: WeBank Screenshot

Outstanding Areas

Table: Products and Features

kakaobank — South Korea

Figure: kakaobank Screenshot

Outstanding Areas

Table: Products and Features

Xinja — Australia

Figure: Xinja Screenshot

Outstanding Areas

Table: Products and Features

Winning Traits for Challenger Banks

Superior UI and UX

Gamification in Banking

Hyperpersonalization

The Infiltration of Fintechs into Banking

Table: An Origin Story

Ecosystems as the Key to Success

Profitability and Sustainability

Interest Rate Pricing — Tactical Decisions

Blue Ocean Strategy in China

Can Their Successes Be Replicated?

Figure: Smartphone Penetration Against Unbanked and Underserved Segments

The Potential for Growth in Asia/Pacific

Figure: Challenger Market Share of Total Retail Loans

Figure: Challenger Market Share of Total Deposits

Figure: Asia/Pacific Banking Loan Balance

Figure: Asia/Pacific Banking Deposit Balance

Table: Estimated Market Share in Asia/Pacific by 2023

Other Considerations as Seen in South Korea

Nontraditional Revenue Streams

Challenges Ahead

Competing Head to Head with Incumbents

Customers' Propensity to Switch

Building Customer Trust in a Digital Age

Integration into the National Credit Scoring Ecosystem

Advice for the Technology Buyer

Learn More

Related Research

Synopsis

Content


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