New promise for fintech in APAC | Source: Pexels
APAC fintech market to reach $72b by 2020 – study
THE Asia Pacific fintech sector grew significantly in 2017 thanks to the active support and initiatives taken by financial regulators and is set for further growth, according to Frost & Sullivan’s annual Fintech Outlook.
The report, launched in Singapore last week, states that the fintech industry in the Asia Pacific region is expected to grow at a compounded annual growth rate (CAGR) of 72.5 percent from 2015 to US$72 billion by 2020.
Increasing adoption of cashless payments by small and medium-sized enterprises, continued support from the Monetary Authority of Singapore, Bank Negara Malaysia, and Bank Indonesia, and widespread awareness of digital payments, has bolstered the outlook for fintech in Asia.
Furthermore, new methods of crowdfunding using blockchain, will also lead to growth in the personal and business financing segment, according to the report.
New fintech solutions are changing customer behavior and will radically transform the way consumers shop, pay, and transact with banks and insurance companies in the future.
At the launch, Frost & Sullivan’s ICT Asia-Pacific Consulting Director Spike Choo said that due to the Singapore government’s push to develop a cashless society, new initiatives will be launched to encourage more consumers and enterprises to adopt digital payment technologies.
He also expects to see more innovative fintech services being launched in the areas of investments, advisory services, and insurance thanks to advances in digital data analytics, artificial intelligence, and blockchain.
However, the sustainability of these services will depend on how well they can address the wide-ranging consumer’s investment and insurance needs, without compromising on the customer experience.
Heidi Vella is a freelance energy and technology journalist based in London. Her interests include smart cities, clean energy, emerging markets and technology innovation. Prior to working freelance, Heidi spent four years’ covering all things technology and energy-related for London-based Progressive Digital Media.