The Fintech industry in Asia Pacific is expected to reach $72 billion, growing at a CAGR of 72.5 percent from 2015 to 2020.
Main growth drivers for Fintech industry in Asia Pacific are fuelled by growth in digital payments such as increasing adoption of cashless payments by small and medium sized enterprises.
“There is also more widespread awareness of the viability of using P2P financing as well as new methods of crowd-funding using Blockchain, which will lead to growth in the personal and business financing segment, according to Frost & Sullivan.
The above chart prepared by Fintech Global indicates the Fintech investment deals globally during Q2 2016 – Q2 2017.
Spike Choo, consulting director at Frost & Sullivan’s ICT Asia-Pacific, said he expects to see more innovative Fintech services being launched in the areas of financial investments and advisory services as well as insurance due to advances in Big Data Analytics, Artificial Intelligence and Blockchain.
The sustainability of these Fintech services would depend on how well they are able to address the wide-ranging consumers’ investment and insurance needs while ensuring the business model is sustainable without compromising on the customer experience.
The research agency said active support and initiatives by financial regulators such as the Monetary Authority of Singapore, Bank Negara Malaysia and Bank Indonesia has enabled the Asia-Pacific Fintech ecosystem to grow significantly in 2017.
New innovations are expected to radically transform the way consumers shop, pay perform banking transactions and purchase insurance. The wave of new Fintech technologies is also changing customer behaviour and interactions today.
Quah Mei Lee, industry principal, ICT, Asia-Pacific, said the size of mobile payments market in Singapore was $1.4 billion in 2017. She said regional and local regulations and initiatives will help Singapore move towards a cashless Society.
Shuvro Mainuddin, consultant, Banking & Financial Services, Asia-Pacific at Frost & Sullivan said digitalization is the new paradigm for leading banks and financial institutions in Southeast Asia to cater to the increasingly important SME client base.
Nishchal Khorana, consulting director, ICT, Asia-Pacific at Frost & Sullivan highlighted that a successful CX strategy would be based on an integrated approach to people, processes and technology in the digital era.
Frost & Sullivan said analytics and artificial intelligence related technologies will also be fundamental to raising the bar for customer experience.