The fintech ecosystem in the Asia-Pacific region is expected to reach US$72 billion by 2020, partially due to active support and initiatives by various regulatory agencies, according to a market report.
The study by US-based Frost & Sullivan hailed the actions of central banks Monetary Authority of Singapore, Bank Negara Malaysia, and Bank Indonesia in growing the region’s fintech sector.
Asia-Pacific’s fintech industry is projected to grow at a compound annual growth rate of 72.5% from 2015 to 2020, reaching US$72 billion. This is fuelled by increased adoption of digital payments, especially by small and medium enterprises. New technologies such as blockchain and peer-to-peer financing have led to growth in the personal and business financing areas.
“New innovations are expected to radically transform the way consumers shop, pay, perform banking transactions and purchase insurance,” the report said. “The wave of new fintech technologies is also changing customer behaviour and interactions today.”
Spike Choo, consulting director at Frost & Sullivan’s ICT Asia-Pacific practice, highlighted Singapore’s push to promote cashless transactions and encourage both consumers and enterprises to adopt the technology.
He also expects more innovative fintech services to emerge in the areas of financial investments and advisory services, as well as insurance, due to advances in big data analytics, artificial intelligence, and Blockchain.
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