• Crypto.com has been named one of the top ten most popular neobanks in APAC

  • Neobanks (also known as digital banks) have grown rapidly in the last year, owing to a variety of factors such as technological advancement. This expansion has also been extended through 2021, with an increase in customers from Asia Pacific countries (APAC).

    According to the Digital Banking in Asia Pacific report published by Banking Payment Context (BPC) and Fincog, Crypto.com has emerged as the seventh most popular neobank in APAC by the number of clients in 2021 (measured in millions).

    Indeed, Crypto.com, which launched in 2016 and now has 14 million neobank clients by 2021, demonstrates the APAC region’s rapid growth, with crypto platforms also being used by customers as an alternative banking method.

    WeBank, on the other hand, has the most customers in the region by a large margin of 200 million. However, the popularity of mobile investment apps like Crypto.com suggests that retail investors are still very active in the cryptocurrency space.

    Over 130 million new customers were added to Neobanks.

    According to Finbold data, neobanks in the APAC region gained 134.8 million customers in the first half of 2021, bringing the total number of customers to 437.2 million, a 44.57 percent increase over the previous year’s figure of 302.4 million. The region’s neobanks served 239.3 million customers in 2019.

    Between 2020 and 2021, neobanks in Asia-Pacific saw a 113.62 percent increase in new customer acquisition, from 63.1 million to 134.8 million. The most significant increase in customer numbers, however, occurred between 2018 and 2019, when neobanks added a whopping 233 million new customers.

    In addition, the number of neobanks in the area has increased, with 68 platforms registered in the first half of 2021. India had the most entries, with 14, followed by Australia, which had 13.

    Customers are flocking to digital banks.

    Instead of traditional banks, neobanks are direct banks that operate solely online, without the need for traditional physical branch networks. Because of the expansion of tech giants looking to capitalize on the region’s technological advancements, the APAC region has seen an increase in interest in neobanks.

    It is becoming more common for the region to mimic more sophisticated markets such as Europe, where platforms such as Revolut dominate.

    The general public’s desire for online banking services has also aided the industry’s growth, particularly during the coronavirus epidemic, which confined the majority of the population to their homes.

    Crypto.com is growing.

    Crypto.com recently increased the coverage of its insurance program to $750 million, making it the largest insurance policy in the cryptocurrency sector in response to increased consumer protection requirements.

    As a result, the insurance is larger than the nearly $700 million in coverage purchased earlier this year by digital custodian BitGo. Insurance coverage for digital asset businesses is being expanded to include physical damage protection as well as, perhaps more importantly, protection against third-party theft.

    Finally, despite the fact that the number of people using neobanks in the region is growing, the industry still faces a number of challenges. Uncertainty about a new provider, as well as a reluctance to abandon the dominant, powerful established brands, remain sources of contention.

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