Who Wins Asia’s Consumer-Lending Boom?

Who Wins Asia’s Consumer-Lending Boom?

Asia’s consumer-lending landscape is evolving at an unprecedented pace. Modern customers want financial products as instant, personalised and effortless as the rest of their digital experiences, writes David Becker, Mambu’s Head of APAC, in a guest contribution to finews.asia.

This momentum creates an extraordinary moment for traditional lenders: an opportunity for massive growth, yes, but also a challenge to keep pace.

To seize this opportunity effectively, lenders will need to possess the technology capabilities to move quickly and deliver next-generation consumer credit, capturing both customer loyalty and new revenue streams. Those who hesitate risk being overtaken by more agile competitors.

Growth Opportunity

According to the numbers, the global consumer lending market is expected to reach $11.6 trillion by the end of 2025. Digital lending is driving this growth, accounting for 42 percent of new personal loans and projected to hit 55 percent in the next two years.

In the APAC region, the digital lending market alone is forecast to hit $645 billion by 2025.

Southeast Asia, fueled by high smartphone usage and the push for financial inclusion, is setting an impressive pace. It is a mobile-first movement, with 70% of loans in Asia's emerging markets beginning on a mobile device.

Asia’s Consumer Lending Battleground

The battleground for this technological shift is the customer experience. Borrowers no longer compare their bank to other banks; instead, they compare it to their favourite apps and the simplicity of navigation. They expect loan processes to be as simple and instant as ordering a takeaway meal or booking a ride.

Approvals and disbursements are no longer measured in days, but minutes. Such a level of personalisation and speed will demand leveraging the growing use of advanced data analytics and AI to optimise every stage of the customer journey.

In addition to data-led optimisation, finance options are expected to be embedded. Whether shopping online or managing bills, consumers want instant credit options available directly at their point of need. The rapid mainstreaming of Buy Now, Pay Later (BNPL), especially among Millennials and Gen Z, is proof that flexible, embedded financing is now non-negotiable.

These rapidly shifting expectations are forcing regulators to rewrite their rulebooks, meaning lenders must also be ready to adapt fast and ensure compliance to maintain trust.

Adapting to a Digital-First World

The most significant barrier to necessary innovation is outdated technology. Traditional systems are often monolithic, inflexible, and simply cannot cope with the modern pace of change.

Rolling out new digital products can take months or years, integrating with e-commerce platforms is challenging, and adapting to regulatory changes often means costly and disruptive overhauls.

To stay competitive, lenders will need flexible, scalable technology that can adapt quickly. That often means shifting to the cloud and adopting a new ‘composable’ architectural model, an approach that has already proven successful across Southeast Asia.

Many lenders are moving beyond costly, full-system replacements in favour of this composable cloud banking approach. By selecting, integrating, and configuring only the capabilities they need, institutions can develop, launch, and scale modern credit products in a fraction of the time. At the same time, they can seamlessly integrate new AI and analytics tools into digital wallets and apps, delivering smarter and faster customer experiences.

Path to Success

Success in this new landscape will depend on a composable technological capability that enables speed, flexibility and a customer-centred approach. To lead the market, institutions must be able to deliver real-time, embedded experiences and harness data to provide genuine personalisation, all while maintaining compliance.

Lenders who remain anchored to outdated technology risk being too slow to effectively participate in this innovation boom. The growth trajectory of Asia's consumer credit market is undeniable, and the technology to capture it is available.

The simple question is: will you adapt to seize this opportunity and lead the way forward? Or will you watch on as agile competitors set the pace?

David Becker is responsible for driving Mambu's regional strategy, leading the sales function, and overseeing market expansion across diverse APAC markets. Based in Singapore, he is spearheading efforts to grow Mambu’s footprint, ensuring the company continues to serve as a trusted partner for financial institutions seeking to modernise core systems and embrace cloud-native solutions. He previously served as President, APAC at Temenos and earlier as Managing Director, Head of APAC at Broadridge Financial.