Indonesian Digital Banks Outpace Regional Peers on Deposits and Loan Growth

Indonesia Pulls Ahead

Digital banks in Indonesia have added billions in customer deposits and expanded their loan portfolios significantly over the past few years, outpacing counterparts across Southeast Asia. Lenders backed by major technology and telecommunications companies have grown faster than those in more mature markets, where regulators have imposed stricter guardrails.

The contrast is sharpest with Singapore. MariBank, owned by Sea, launched in 2022 and by 2025 had accumulated S$1.9 billion in deposits, thanks to integration with Shopee's e-commerce platform. Yet the bank made only S$222 million in loans and recorded a S$56 million loss. GSX Bank, a joint venture between Singtel and Grab, held S$1.8 billion in deposits against S$777 million in loans and also reported a net loss in 2025. Both institutions park the majority of their assets with the central bank or in government and corporate bonds.

In Malaysia, GX Bank Berhad reported total assets of $479 million as of 2025 and a loan-to-deposit ratio of just 25 per cent. Loan volumes rose 76 per cent between December 2025 and June 2026, signalling potential momentum, but the base remains small.

Two Factors Drive Scale

Two elements determine whether a digital bank moves from launch to meaningful scale: regulatory posture and the strength of the parent company's existing commercial ecosystem.

Indonesian regulators allowed digital banks to operate with fewer restrictions early on, coinciding with a broader technology sector expansion in the country. That boom has since cooled, but digital banks remain among its more durable and profitable outcomes. Regulators in countries with established banking sectors have moved more cautiously. Singapore approved full licences several years ago but has kept tight oversight, limiting how quickly digital banks can deploy capital into loans.

The second factor is corporate backing. Digital banks integrated into large telecom or e-commerce networks can onboard customers at lower cost and cross-sell financial products to existing users. Sea's MariBank and Singtel-Grab's GSX Bank both benefit from enormous customer bases, yet regulatory constraints in Singapore have prevented them from converting deposits into loan growth at the pace seen in Indonesia.

Philippines Emerges as Two-Horse Race

In the Philippines, digital banking is consolidating around two players. MariBank Philippines, also owned by Sea, reported assets of just over $1 billion by the end of 2025, with its loan portfolio growing 64 per cent year on year. Maya Bank, majority-owned by telecom operator PLDT, held $1.25 billion in assets and saw its loan book jump 86 per cent compared to 2024.

Both banks follow the Indonesia playbook: telecom or platform backing combined with a regulatory environment willing to let them expand. The Philippines has not matched Indonesia's pace, but the trajectory is similar.

Vietnam and Thailand Lag

Vietnam has yet to issue standalone digital banking licences. Digital finance platforms must partner with or operate as subsidiaries of existing commercial banks, effectively blocking new entrants from competing directly with incumbents.

Thailand has moved slowly as well. Regulators have approved a handful of licences, but large prospective players have faced delays. CP Group's Ascend Bank, for instance, has encountered setbacks in getting fully operational.

What Comes Next

The divergence across Southeast Asia reflects broader regulatory philosophies. Indonesia prioritised competition and innovation, accepting higher risk in exchange for faster financial inclusion and credit expansion. Singapore and Malaysia have favoured stability and consumer protection, slowing growth but reducing the chance of failures that could destabilise confidence in digital finance.

For digital banks to pose a serious challenge to incumbent mega-banks, they need both scale and profitability. Indonesia's lenders are approaching that threshold. Singapore's remain subscale. Malaysia's are beginning to accelerate. The Philippines is catching up. Vietnam and Thailand have yet to start the race.

The next 18 months will clarify whether regulators in mature markets ease restrictions or whether Indonesia's model remains the exception rather than the template for the region.