The second trend we need to respond to is the evolving structure of the payments market, which risks becoming both more fragmented and more concentrated in each segment. On the one hand, the acceleration towards digital payments is adding to the diversity of payment methods. But it is also increasing market fragmentation and complexity.
If conditions in global financial markets deteriorate further and risk aversion becomes more entrenched, there is always a possibility that equity capital could flow out of the region reasonably quickly. But Asian equity market valuations are generally not that high, with solid corporate earnings keeping P/E ratios down despite the sharp rise in equity prices recorded in recent years.