MONASH BUSINESS MALAYSIA
Will traditional banking maintain its relevance in the face of digital disruption? Yes. Their sheer size, large capital buffers and longstanding trusted relationships with clients ensure strong positions to survive in the longer term. Traditional banks also understand credit risk analysis, fraud avoidance, and how to survive economic downturns— areas where newer digital challengers are still immature.
As market players drive innovation, universities and research institutions can offer valuable scientific insights and analyses of trends to guide industry practices and influence policy. Training today’ s students in emerging technologies ensures tomorrow’ s workforce is ready to tackle challenges of the future.
Professor Andreas Deppeler
“ On the ground, businesses and consumers are experiencing financial services in ways never seen before.”
FinTech lenders and decentralised finance( DeFi) platforms will authorise loans faster based on data. Crossborder payments and supply chain financing will be faster and cheaper via blockchain and digital payment networks. For retail customers, AI-driven financial services will be capable of providing hyper-personalised banking and tailored experiences.
Led by FinTech disruptors and forward-thinking traditional banks, ASEAN markets are also driving financial inclusion initiatives. Malaysia’ s Touch‘ n’ Go eWallet( TNG) and Singapore’ s DBS Bank are powerful examples of how digital innovation can expand access to financial services, reshape user expectations and elevate industry standards.
Further north, Siam Commercial Bank( SCB), one of Thailand’ s largest and oldest financial institutions, has partnered with Abakus Group to establish MONIX, a joint venture utilising AI and machine learning to transform digital lending.
“ Innovation is not the sole domain of startups; with vision and the right partnerships, even established institutions can drive meaningful disruption.”
Transformation has also leapt beyond urban cityscapes. SeaBank, a rural bank in the Philippines affiliated with Shopee, now offers fully digital banking services via mobile phones, connecting unbanked and underbanked populations to the formal financial system in a user-friendly and scalable way.
On the investment front, GO + and eMas have democratised access to the money market and gold investments, levelling the playing field and encouraging healthier financial habits. With as little as RM10, users can begin their investment journey.
From banking to investment and financial services, ASEAN-based institutions are not merely adapting to the digital era. They are also defining it, setting a standard for inclusive, accessible, and sustainable financial innovation.
As global financial institutions respond to growing climate risks supported by regulatory and policy bodies, ASEAN faces unique sustainability challenges. The region is among the most climate-vulnerable, and greenhouse gas emissions are projected to continue increasing in the region until around 2030 due to industrialisation, rapid deforestation and one of the fastest growing rates of energy demand in the world( International Energy Agency).
In a huge step forward, many ASEAN member states have committed to achieving carbon neutrality. Governments, corporations, and investors are increasingly prioritising ESG factors. Financial regulators are implementing ESG reporting standards, green taxonomies, and incentives to encourage sustainable investments. Changing consumer preferences are further reinforcing this momentum, as clients favour businesses with strong ESG commitments, prompting banks and corporations to adopt green finance solutions.
“ Collaboration, not competition, is the future of finance.”
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