Digital banks in Asia Pacific witnessed improving overall profitability in FY2019. Although some digital banks’ net profit in FY2020 has been affected by COVID-19 pandemic, their growth outlook remains optimistic.

Retail banking sector has been the main growth driver for Indian banking sector during the past few years, as banks’ exposure to corporate banking sector has been reduced due to bad loans problems. Their retail lending has grown at a compound annual growth rate (CAGR) of 16.2% over the FY2013 to FY2018 period, making India's retail banking one of the biggest among emerging markets.

The Top 100 banks in consumer banking in Asia Pacific, the Middle East and Africa is the result of The Asian Banker International Excellence in Retail Financial Services Programme, the most rigorous, prestigious and transparent audit programme for consumer banking.

The global financial industry has evolved as a result of the widespread digital transformation of traditional banks and the entrance of new digital banks. In the Middle East, the legal framework is slowly developing, which will open up the market to more digital banks.

A year after Hong Kong issued eight digital banking licences, Mox and ZA Bank have emerged as the early leaders. Together with WeLab, the three banks account for 86% of all virtual banking deposit in Hong Kong.

The most competitive digital retail financial institutions come all but from China, and the elite club of the top 10, representing all non-bank financial players, are exclusively from China, Korea and Australia

Wide discontent with conventional banks have led to the emergence of mobile-only fintech banks. However, these challenger banks are struggling to expand their customer reach, putting doubts whether they can stand against bigger traditional banks.

Innovations emerging from East and West African banking hubs are enabling the sector to take a lead in reaching Africa’s unbanked population but much remains to be done.

Formal financial institutions have connected only 22% of the Indonesian population. A huge potential for the financial sector still needs to be explored, and digitised lending, which combines retail banking with financial technology, should be a future solution.

Despite considerable variations within the Middle East and Africa, the banking sector as a whole achieved good financial performance in 2014

Indian banks still dominate the list of the top 10 banks with the highest nonperforming loan (NPL)ratio among the 500 largest banks in Asia Pacific, despite the improved asset quality. In addition, the list also includes two banks from Bangladesh and one each from China, Japan, and Pakistan.

Al Rajhi Bank retained the top spot in the rankings of the largest and the strongest Islamic banks in the world. Malaysia had the most Islamic banks on the list, while Saudi Arabia held the largest share of total assets

Asia Pacific banking sector delivered better-than-expected profitability and reduced NPLs in FY2021.The strongest banks in China, Hong Kong, Japan, Macau, Malaysia and Singapore ranked among the top 10 strongest banks in the region

Asia Pacific banks saw asset growth slow down to 7.9% in FY2021 from 10.7% in FY2020, while 85% of banks posted higher net profit, reflecting economic recovery from the COVID-19 pandemic

China Merchant Bank (CMB), Industrial and Commercial Bank of China (ICBC) and other major Chinese commercial banks have stopped robo-advisory services in response to increased regulatory scrutiny.

Central banks worldwide increasingly recognise the benefits of wholesale central bank digital currencies (wCBDCs) in making remittances and other cross-border transactions cheaper, faster and safer. Pilot projects set in motion seek to identify opportunities and risks as well as explore the possibility of having shared infrastructure to automate cross-border payments, foreign exchange and settlements.

Indonesia’s Bank Central Asia, DBS Singapore, South Korea’s Toss Bank, and China’s Alipay were voted the Most Recommended Retail Bank, Most Selected Main Bank, Most Recommended Digital-only Bank and Most Recommended Platform, respectively, in the 2023 BankQuality™ Consumer Survey

The combined revenue of the top 100 global digital-only banks increased by 16% to reach some $66 billion, with China’s WeBank, Ally Bank from the US, and the retail arm of ING Group in the lead in 2023

Disintermediation by digital wallets and decentralised finance platforms is shifting deposit business dynamics, requiring conventional banks to innovate and stay competitive

Thirty-seven banks held assets surpassing $1 trillion, distributed among 16 in Asia Pacific, 13 in Europe, and eight in North America, representing 51% of the top 1000 banks’ total assets; overall asset growth has decelerated, with the US and some European nations experiencing steep declines and countries like Egypt demonstrating resilience

According to a TABInsights survey on technology investment, FI in APAC prioritise data management, advanced analytics and digital banking capabilities

In 2023, China’s domestic systemically important banks grew to 20, led by China Merchants Bank in the TAB Global 1000 World’s Strongest Banks 2023 ranking, but some still require more capital despite improved capital ratios

Four banks in Bangladesh on the TABInsights Bank Watch List reported an average gross NPL ratio of 17.8% in FY2022, while Indian banks demonstrated improved asset quality, with none making the list, highlighting resilience to economic fluctuations

Banks in the Middle East and Asia Pacific showcased outstanding operational efficiency, with Qatari banks achieving exceptional cost-to-income ratios by leveraging superior IT infrastructure, offering cost-effective digital services, and tailoring branch networks to cater to smaller populations

Al Rajhi Bank in Saudi Arabia remains the leading global Islamic bank, with Middle Eastern counterparts surpassing Asian ones in scale and profitability, while Asian Islamic banks exhibit stronger asset quality

Philippine digital banks saw rapid growth in 2023 alongside mounting concerns over credit quality as gross NPL ratios soared

The top 10 digital banks saw revenue grow from $41 billion in 2022 to about $49 billion in 2023

China‘s private banking sector has witnessed a significant migration of high-net-worth individuals to the country‘s largest banks, underscoring a flight-to-safety trend and intensifying competitive pressures for smaller banks.