During the pandemic, digital services across every sector boomed and
fintech is no exception. Electronic wallets are proving particularly
popular, in line with growth in e-commerce, while a younger, tech-savvy
generation is choosing digital banking over more traditional providers.
According to a report from Ernst & Young, fintech is booming in
particular within Asia, with several factors buoying the market. A
report from Ernst & Young, the ‘EY Global FinTech Adoption Index’,
released in July last year and which covers 27 markets, points to how
Asia is retaining its global leadership in fintech adoption. Over the
past two years, it says adoption of fintech tools across the region has
skyrocketed among consumers and small businesses, particularly in China,
India and the financial hubs, with 87% of Chinese respondents in its
survey now using one or more fintech services.
Ernst & Young expects Asia to keep ahead of other markets,
pointing to ‘a new openness to innovation by regulators; the advent of
virtual banks; the growth of the API [application programming interface]
ecosystem; and the entrance of new competitors backed by Chinese
financial and technology giants’.
A view from global financial services group Macquarie, entitled
‘Delivering digital financial inclusion in Southeast Asia’, also
highlights how many people within the region ‘remain unbanked, with no
access to financial products [...] or are underbanked – lacking access
to anything other than a bank account’. This, says Macquarie, provides
the ideal backdrop for providers of digital financial services to step
in and supplement established banking systems’ services.
With this demand in mind, fintech events are thriving and are likely
to feature on many event agendas this year. The Fintech Asia Summit,
taking place this week online, is covering areas such as payment
gateways, artificial intelligence, compliance and cyber security, while
Asia Fintech 2022, also online and on 9 May, focuses on promoting
business opportunities and discussing the latest trends.
The co-located FinTech and PayTech Connect Asia event, from 11-13
October at Raffles City Convention Centre in Singapore focuses on
fintech innovation, while the Singapore Fintech Festival will be held
from 7-11 November.