Why AirAsia’s embryonic bank faces headwinds

Challenges include developing risk-management skills as well as rising consumer awareness of data privacy. Overcoming these might take more than a zero mark-up on FX transactions.

Why AirAsia’s embryonic bank faces headwinds

AirAsia’s launch of a financial services firm has a lot of mileage given the quantum of data the budget airline generates on its passengers, but the challenges to building a profitable lender are substantial.

AirAsia has already conducted a soft launch for the bank dubbed BigPay in Malaysia and later this year will grow it across Southeast Asia and expand its service offering to remittances and lending.

Nurturing the...

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