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When Simon Loong co-founded WeLab 13 years ago with his wife and a business partner, their first office furniture came from a neighbouring startup giving away secondhand IKEA desks. Today, WeLab stands as one of Asia's most innovative digital banking groups with operations spanning Hong Kong, Indonesia, and soon Thailand.

This remarkable journey from scrappy startup to regional financial powerhouse offers valuable lessons in spotting trends, avoiding pitfalls, and scaling strategically across diverse Asian markets.

Spotting the Right Trends at the Right Time WeLab's success stems largely from Simon's ability to identify emerging opportunities. The company became Hong Kong's first online lender and one of mainland China's first mobile-based lenders in 2014, giving them a significant first-mover advantage. They scaled rapidly as consumers across Asia upgraded from feature phones to affordable smartphones from manufacturers like Xiaomi, OPPO and Huawei.

Whilst competitors rushed into P2P lending, WeLab's banking background helped them recognise the risks and steer clear of this potentially dangerous model. They also secured one of Hong Kong's first digital banking licences, establishing valuable experience that would later help them expand to Southeast Asia.

Redefining Financial Inclusion Through Technology At the heart of WeLab's mission is making financial services accessible to everyone through technology. Their digital approach allows for cost-efficient lending, as Simon explains: "Being able to lend digitally allows us to lend cheaply—and to everyone. The cost to process a $1 loan versus a $100 loan is the same."

Without the constraints of physical branches, WeLab can serve farmers and rural communities across Asia. Their philosophy on design is particularly noteworthy: "Old people are not un-tech savvy. It's about designing experiences that are intuitive enough for everyone." Simon believes products should be so intuitive that "people don't need to go to a branch to ask how to use your app."

Building Trust in the Digital Age For a digital bank, establishing trust is paramount. WeLab has mastered this through longevity and consistency, building a reputation for transparency and professionalism over time. Strategic partnerships, such as securing investment from respected institutions like the Hong Kong government's investment fund, have bolstered their credibility.

They've also benefited from growing consumer comfort with mobile technology. As Simon notes, as people become accustomed to using mobile apps for everyday needs like ordering food and buying groceries, the transition to digital banking becomes more natural.

Advanced Risk Management: Where Banking Meets Innovation WeLab's core strength lies in combining traditional banking risk principles with cutting-edge technology. Their hybrid approach integrates "bank-grade risk management with alternative data, mobile analytics, and behavioural data."

Their fraud detection capabilities are particularly impressive, with AI systems that don't just identify faces but can detect fraud syndicates by analysing the backgrounds of selfies submitted during identity verification. They've even signed an MOU with the Royal Thai Police to share fraud detection information, demonstrating their commitment to fighting financial crime across borders.

The AI Evolution: From Prediction to Generation to Agents WeLab's AI journey showcases their forward-thinking approach. They began with predictive AI focused on forecasting fraud and credit risk. They've now moved to locally deployed generative AI (DeepSeek) for employees, ensuring sensitive banking data remains secure—a critical consideration for regulated financial institutions.

Looking ahead, they're developing AI agents capable of autonomously executing trades, engaging customers, and handling sales without human intervention, positioning them at the cutting edge of financial technology.

Scaling Across Asia: The WeLab Formula WeLab has perfected a formula for successful regional expansion. They insist that "any market we go to, the management team is 100% local" to ensure deep market understanding. Their technology platform remains 50-60% consistent across markets, with the remainder adapted for local needs.

Perhaps most impressively, WeLab Bank in Hong Kong achieved profitability by its fourth year—a rarity among digital banks that typically take 5-7 years to break even, if they ever do. As Simon says, "Profitability is universal. If your bank can't make money, it doesn't matter where you scale."

The Uncomfortable Comfort Zone When asked what advice he'd give his younger self, Simon shared a philosophy that has guided WeLab's success: "Get as uncomfortable as you're comfortable with. Try new things. You'll find your edge, your niche, your differentiation. If you always stick with a single formula, you never know what's out there."

This willingness to embrace discomfort whilst maintaining a strategic foundation has propelled WeLab from secondhand furniture to financial innovation leader—proving that in digital banking, the right balance of tradition and disruption creates lasting success.

Guest:
Simon Loong, Founder & Group CEO, WeLab

Host:
Sheryl Chen, Head of Content, Money20/20 Asia