PwC looks at how your bank can capitalise on the opportunities for expansion in Southeast Asia, drawing on our close working partnerships with a range of Japanese banks, our knowledge of their target markets across Southeast Asia and what we can learn from Western banks’ moves into the region in the 2000s. Although Japan is enjoying renewed economic momentum, the impact of a shrinking working age population heralds slowing growth over the longer term.
For the Japanese banks operating in a mature and saturated home market, the prospects for domestic growth are especially limited. The rapidly expanding markets of Southeast Asia offer huge commercial potential and are already attracting considerable interest from Japanese banks. But to make the most of the potential, banks will need to broaden their focus from supporting Japanese clients and conducting largely Yen-denominated lending in these markets to building a strong local customer base and providing credit in local currencies.
Southeast Asian markets offer Japanese banks huge potential for expansion. But making the most of these opportunities is going to require a new strategy, mindset and way of running the business.