RETAIL BANKING | Staff Reporter, Singapore

ASEAN banks brace themselves from giant Chinese tech companies

These tech players venture into fintech using data from ecommerce.

The entry of Chinese tech giants could bring disruption to the financial sector, a Credit Suisse research reports, as these tech players also venture into the fintech space using data accumulated from ecommerce.

Here's more from Credit Suisse:

Financial institutions focusing on micro loans are likely to be more exposed to competition from these fintech players as the latter focuses on the underbanked population. Banks could be more impacted by the reduction of fee income partly because various governments are promoting e-payment adoption.

Our interviews with various experts suggest that banks may face some downward pressure on fee income, but are less exposed to competition in lending from fintech players. Instead, finance companies offering micro and nano loans are more exposed as they could compete directly with the fintech companies.

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