Asia is currently in the midst of a boom in digital and technological innovation. The emergence of digital giants—including China’s Tencent, Alibaba, and Baidu; Japan’s Rakuten and SoftBank; South East Asia’s Grab and Go-Jek; and India’s Paytm—is clear evidence of the trend. Fast-moving and aggressive, these companies and others are thriving because they have access to capital and because Asian consumers are especially receptive to new mobile and internet technologies.
Across Asia, the digital boom is a significant challenge for traditional incumbents. Faced with the pressure to digitize and suffering from stagnant performance and slow valuation growth, many incumbents are seeking opportunities to transform and leapfrog. This has led them to embrace ecosystems, collaborating with diverse organizations that provide digitally accessed, multi-industry solutions based on emerging technologies.
Ecosystems present several clear strategic benefits in an environment where traditional banks are losing growth momentum.