Southeast Asia Commercial Banking Market Expected to Reach $16,341.98 Billion by 2031 -Allied Market Research

According to a recent report published by Allied Market Research, titled, “Southeast Asia Commercial Banking Market by Product and Application: Opportunity Analysis and Industry Forecast, 2022-2031,” the Southeast Asia commercial banking market size was valued at $3,063.41 billion in 2021, and is projected to reach $16,341.98 billion by 2031, growing at a CAGR of 18.3% from 2022 to 2031.

Commercial banks play an important role in the evolution and development of countries in Southeast Asia. Banks are adopting efficient and effective approaches of monetary system to ensure the smooth flow of functions. Since the beginning of liberalization and globalization of the economy, the financial sector plays an important role, as it is responsible for overall growth of the economy. Moreover, commercial banks are impacting both urban and rural markets significantly in the region.

Furthermore, small & medium enterprises play a vital important role in determining the overall performance of the economy of Southeast Asia by various means such as employment, innovation, and technology. On the other hand, commercial banks accelerate the development of the Southeast Asia countries economy. Hence, commercial banks are helping by providing credit to small and medium enterprise for the growth of their business, influences positively by understanding the matter of loans between the investor & the borrower, and ensuring efficient use of depositor funds.

Primarily, commercial loans are increasingly provided by banks, organizing surplus fund from depositor who have no need of immediate money and transforming in the form of credit to investors who have excellent ideas and further create additional wealth in the economy. Moreover, since SMEs are very important for economic growth, commercial banks provide loans only after verifying the things such as assets, sales projection, and business growth.

On the basis of application, the healthcare segment is the highest growing segment and propelling the growth of Southeast Asia commercial banking market trends. This is attributed premiums and coverage amount offered by commercial health insurance that are designed to create a profit for the insurance company as well as wellness of the commercial sector employees. As a result, this is considered as the major factor for driving the Southeast Asia commercial banking market growth.  

By country, China attained the highest growth in 2021. This was attributed to the fact that China has the fastest technological advancement in the region in terms of adopting Artificial Intelligence in banking and financial institutions.   

COVID-19 Impact analysis

The commercial banks were operating during COVID-19 in the Southeast Asian countries and were considered as an essential service. Moreover, due to the fear of spread of virus, consumers were hesitant toward visiting the branch physically and adopted services of commercial bank online. However, banks adopted online banking system and offered banking services to the customers through their mobile phones. Furthermore, it led to increased customer satisfaction and consumers were attracted toward the innovative and fast services provided by the online banking apps. Thus, the COVID-19 positively impacted the Southeast Asia commercial banking industry.   

Key findings of the study

• By product, the commercial lending segment led the Southeast Asia commercial banking market in terms of revenue in 2021.
• By application, the healthcare segment accounted for the highest Southeast Asia commercial banking market share in 2021.
• By country, China generated the highest revenue in 2021.

The key players profiled in the Southeast Asia commercial banking market analysis are CIMB GROUP HOLDINGS BERHAD, Malayan Banking Berhad, Citigroup, Inc. , Public Bank Berhad, DBS Bank Ltd, HSBC Group, OCBC Bank, United Overseas Bank Limited, PT Bank Mandiri (Persero) Tbk., and PT.Bank Rakyat Indonesia (Persero) Tbk. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.