Growth Gateway: Towards ASEAN’s financial integration (summary)
Published 13 October 2025
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ASEAN, with its population of 680 million and a GDP of approximately £2.8 trillion, is collectively poised to become one of the world’s top four economies by 2050. Its large, youthful workforce and cost-effective environment make it an attractive destination for global businesses. Financial integration is essential for ASEAN to fully realise this potential, as it would enable more efficient resource allocation, enhance global competitiveness, and provide resilience against financial shocks.
As global trade patterns shift, ASEAN stands to benefit significantly, with trade projected to grow by £950 billion over the next decade. However, to support this growth, ASEAN must overcome five key challenges in financial services: data-sharing, systems interoperability, licensing regulations, digital literacy, and talent development. Trade finance, in particular, is a critical area, given that 70% to 80% of ASEAN’s trade depends on it. Yet, a growing trade finance gap – currently £270 to 320 billion – threatens to hinder progress.
Bridging even a fraction of this gap could unlock £70 billion to £80 billion in trade value and create millions of jobs. The gap is driven by high risk-assessment and processing costs, fraud risks, and limited access to risk mitigation tools. These issues stem from 2 core problems: lack of information transparency and slow digital adoption. Addressing these could significantly reduce inefficiencies and fraud, making trade finance more viable and accessible.
To tackle these challenges, ASEAN can adopt a multi-level strategy involving banks, national governments, and regional cooperation. Banks can form consortiums to share technology costs and risks, while countries can establish centralised information registries. Regionally, ASEAN can work toward shared transparency goals. A ‘think big, start small’ approach – beginning with pilot programmes in select member states – can catalyse broader integration. With coordinated public-private efforts, ASEAN can unlock its economic potential and build a more resilient, integrated financial future.