A new report by Boston Consulting Group says that 77% of profitable challenger banks are based in the Asia Pacific region.
In Brief:
There are 249 digital challenger banks in the world and only 13 are profitable.
10 of these are based in APAC.
More than two-thirds of digital challenger banks were set up in the past 10 years.
What does this mean?
The report shows that digital challenger banks are still having a hard time turning a profit, with less than 5% of the global total breaking even. The report says Southeast Asia and India present good opportunities for a profitable challenger bank as operators in that region are expanding rapidly.
