Asia’s digital banking sector is witnessing a wave of developments as banks and regulators accelerate innovation and tighten oversight amid rising demand for faster, safer, and more inclusive financial services. Key moves this week reflect a shift in strategy towards leveraging predictive AI, enhancing cybersecurity, and expanding regulatory frameworks.
i-exceed bets on predictive AI to drive next phase
India-based firm i-exceed, which serves over 125 banks and 150 million customers globally, has placed predictive artificial intelligence (AI) at the centre of its strategy for digital banking’s next phase. The company says AI will enable personalised services that anticipate customer needs rather than simply respond to them. Challenges remain around transparency (“explainability” of AI decisions) and regulatory compliance, which i-exceed highlights as essential to maintaining user trust and security.
OCBC pushes blockchain and tokenisation in funding strategy
Singapore’s Oversea-Chinese Banking Corporation has launched a US$1 billion digital commercial paper programme using blockchain technology, aiming to improve its U.S. dollar funding capacity. The move comes amid growing interest in asset tokenisation and reflects Singapore’s position as a regional hub for financial innovation. The new digital issuance complements OCBC’s existing conventional commercial paper activities.
Regulators step up oversight and infrastructure expansion
In India, the central bank is preparing to reassess its framework for internet and mobile banking. This includes expanding digital lending interfaces and scaling up pilot projects for central bank digital currencies (CBDCs) to better integrate them with mainstream financial systems. Meanwhile, Thailand’s central bank has introduced new rules capping daily online transfers for many users to counter financial scams. Vulnerable groups such as the elderly and children are being specifically protected under the new limits.
Implications for customers, banks and policy makers
These developments have immediate implications. For consumers, the advances in AI, blockchain, and regulation offer promise of more convenient, secure, and inclusive services—but also introduce risks around privacy, transparency, and fair access. For banks, the pressure is rising not only to innovate but to do so in ways that are interoperable, compliant with regulation, and resilient to fraud and cyberthreats. For regulators, the balancing act continues: enabling innovation while safeguarding financial stability and consumer protection.
Outlook
Digital banking in Asia is clearly accelerating. Watch for how AI firms like i-exceed deliver on their promises, how regulators manage the risks of widespread digital lending and CBDCs, and how financial institutions scale up blockchain and tokenised instruments in their funding. These trends are likely to reshape competition, customer expectations, and the shape of banking across Asia in the coming years.
Newshub Editorial, 12 September 2025
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