A new report by Boston Consulting Group says that 77% of profitable challenger banks are based in the Asia Pacific region.
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.