SINGAPORE: Among banks in Asia’s biggest economies, those in Hong Kong, South Korea and Singapore stand to lose the most in the face of competition from financial technology companies, according to Singapore’s regulator.
Operating income at Hong Kong lenders could drop by about 7% due to being displaced in payments, deposit and lending, according to estimates made by the Monetary Authority of Singapore in its annual Financial Stability Review. South Korean and Singapore banks could see reductions of more than 5%, the regulator said in a report published yesterday. The estimates are “based on an unmitigated scenario in which banks do not take actions to address the fintech competition,” the MAS said. “The competitive threat and its corresponding impact is expected to vary across business lines,” it said, adding payment is the largest area of risk.
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