Banks across the Asia are cutting down the growth velocity in 2014. Bank of China has the rugged assets and liabilities in the Asia Pacific and Hong Kong. Banks are foreboding from increased non-bank competition, more often type casted as Fintech companies. As per the Asian Banker, this has already distressed the financial enforcement of Asia Pacific (APAC) banks.
The up-surging competition from non-banking organizations is creating pressure on the banks, forcing them to counter quickly to fluctuating market circumstances. 2014 has been reported to be a challenging year, as banks across the region faced falling profit margins and drooping resource parameter amongst vigorous competition. In general, wilting resource parameter was an utmost challenge for the APAC banking sector. Banks had to drive top-line sprouting to ratify effectiveness.
Boosting huge amount of clients’ losses, the Asian Banker traced out that technology firms such as Alibaba Group Holding and Tencent Holdings. In addition to this, they have also launched China’s first internet-based bank, Webank that targets small and medium-sized enterprises.