The Asia-Pacific Fintech Market is expected to grow at a whopping average annual growth rate of 81.2% from 2020 to 2026 to cross USD 178 billion.
FinTech, a combination of the word "finance" and "technology," is a relatively new term that applies to the emerging technologies that help consumers or financial institutions provide services in new and faster ways than traditional methods. If you think about the difference between entering a bank and requesting a balance and the ability to obtain that information in real-time from your phone, you are probably familiar with the impact of FinTech.
Cybersecurity is becoming a significant challenge in the information technology sector. Organizations that vulnerable to financial losses due to cyber-attacks are investing heavily in FinTech. Not only does FinTech provide financial data security, but it also offers convenient trading, smooth operation of the financial system and perfect cash flow. Each modern bank has its own mobile application that allows customers to trade online and transfer money to other users around the world. This is creating an essential market for financial technology where suppliers can take advantage of the demands of several banks (old and new banks). The latest innovations are presumed to radically change the way consumers buy, pay, perform bank transactions and buy insurance. The new wave of Fintech technologies is changing customer behavior and interactions today.
Unfortunately, the size of the FinTech market lags behind government regulations with strict rules that limit the operation of FinTech applications. In addition, these applications lack the presence of humans. They may be subject to additional convenience fees that apply to transactions, and it is clear that many accounts for the FinTech mobile application are inactive.
Based on the service, the Asia Pacific Fintech market is divided into payments, personal finance, loans, fund transfer, insurance, wealth management and others. The digital payments segment in the regional market is multiplying with the increasing consumer transactions and payments for products and services over the Internet, as well as mobile payments from the point of sale terminals through smartphone applications. The division is predicted to experience a record growth rate over the forecast period.
Based on the application, the Asia Pacific Fintech market is segmented as Banking, Insurance, Trading, Taxation and Others. Among these, the banking segment holds a prominent share in the regional market and is likely to continue its dominion in the coming years. The increasing need for secured digital transactions and the advent of several Fintech start-up companies have boosted the adoption of these services in the banking industry.
Globally, Asia Pacific is predicted to be the fastest-growing region for the Fintech industry. There are many opportunities in the rapidly changing Asia-Pacific finance technology environment, and investment in them is increasing rapidly. Open banking and other regulatory initiatives are redefining the financial services market, and external providers can access data from previously owned bank customers. China and India have a much greater penetration of Fintech services. Singapore already has the best mobile payment solutions to promote acceptance in the island. With limited partnerships and the first local mentality, there is a risk that the market will not fully realize its potential.
Key participants in the APAC FinTech market include Oscar, ZhongAn, Qufeng, Lufax, Avant, Atom Bank, Kabbage, Kreditech, JD Finance, Nubank, SoFi, Square, Klarna and Funding Circle, among others.
Recent Developments and Trends
The Fintech market leader was Ant Financial of Alibaba Group, which observed ten times more Wallet subscriptions and 13 times more average transactions in 2017 than in 2015.
In March 2019, Cognizant completed the acquisition of the Dublin-based Meritsoft financial software company, which will help support Cognizant’s Fintech developments.
In March 2019, WorldFirst acquired the Australian company CurrencyVue to build a global trading platform. As demand for Fintech increases, the market is ready to see more acquisitions in 2019.
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