Digital banking is accelerating at high speed. The people who already use these services want more,and those with little or no access to incumbent banks can use smartphones to leapfrog straight intothe digital domain. This report explains how digital finance companies and licensed digital banks canexpand the total addressable market (TAM) in ASEAN by reaching the unbanked and underserved,while taking slight market share from incumbent banks. We forecast digital credit TAM in ASEAN torise from a low level to cUSD180bn in 2030e, creating digital revenue totalling USD22bn.

We identify four digital bank archetypes and compare their competitive positioning with incumbentbanks by looking at global and ASEAN case studies. This serves as a framework for understandingwhat we expect to be rapid developments in digital finance over the next few years.