Money20/20, the world's leading fintech show and the place where money does business, is launching the whitepaper, The Future of Fintech in APAC, ahead of Money20/20 Asia, taking place in Bangkok on April 22-24.
The whitepaper unveils insights into the fintech landscape, drawing on detailed interviews and surveys from over 50 key fintech stakeholders across Asia, including Thailand, Singapore, Malaysia, Hong Kong and more. The whitepaper also reveals that nearly one in three of these stakeholders, including banks, fintechs, and industry experts, prioritize expansion into Southeast Asia. Additionally, over 95% of participants highlight financial inclusion and social good as top priorities for the region.
The report highlights Southeast Asia's fintech potential, emphasizing human-centric approaches to ensure accessibility and success. It also examines trends and challenges reshaping customer service and financial access across the region.
Key findings:
- Banks Innovating for a Unified Future: The banking landscape in APAC is evolving rapidly, with digital and traditional banks striving to deliver superior customer experiences through technological innovation and strategic localization. Digital banks are leveraging ecosystems and partnerships to accelerate growth, though profitability remains a key challenge with only 5% achieving it globally. At the same time, traditional banks are adopting cutting-edge solutions like AI, blockchain and cloud computing to modernize legacy systems, enhance efficiency, and expand customer reach. Interestingly, the divide between digital and legacy banks is diminishing as both adopt similar technologies and strategies to navigate regulatory challenges and meet customer demands in a highly interconnected financial ecosystem.
- APAC Leading the Charge in Digital Payments and Cross-Border Innovation: APAC is at the forefront of digital payments, with systems like PayNow, PromptPay, and UPI driving rapid adoption. In 2024, the region saw a 20.4% year-on-year growth in non-cash payments, outpacing Europe and North America. Cross-border payments are undergoing transformation through fintech innovations, with initiatives like Project Nexus integrating instant payment systems. Nearly 1 in 5 respondents rank blockchain among the top technologies impacting Asian fintech,with Thailand's SCB's partnership with Lightnet and Singapore's Project Ubin Phase 5 exemplifying blockchain's role in revolutionizing cross-border payments. The increasingly clear regulatory landscape in these Southeast Asian countries has been crucial to these advancements. Despite challenges around costs and regulations, growing collaboration between fintechs and traditional banks is making payments faster and more affordable. Meanwhile, cryptocurrency and central bank digital currencies (CBDCs) are paving the way for new payment solutions globally.
- Embedded finance shifts focus to integration and user experience: Embedded finance is transforming Asia's fintech ecosystem by integrating financial services into everyday non-financial platforms. Leaders like GCash, Boost, and BigPay are enhancing payment, lending, and banking access. Focused on regulatory compliance, fintechs are working closely with regulators to ensure consumer protection. Moving away from the "super app" model, embedded finance is becoming more industry-specific, with fintechs partnering with banks to develop tailored solutions. For example, digital wallets are enhancing cashless transactions in ride-hailing, improving convenience and security. As the space matures, the focus is shifting from innovation to consolidation, with a stronger emphasis on helping businesses integrate financial services into their operations.
- Challenges for achieving financial inclusion: The report highlights barriers to financial inclusion in Asia, including low digital literacy, inadequate infrastructure, regulatory challenges, and unviable business models. To improve accessibility, nearly 20% of respondents plan market expansion, 19% focus on product innovation, and over 15% and 12% prioritize partnerships and regulatory compliance, respectively.
Ian Fong, Asia Content Director at Money 20/20, said: "The findings underscore the importance of human-centered approaches in driving fintech success. We are seeing a shift where regulators and traditional banks are open to discussion and collaboration with emerging fintech players on elevating user experience and broadening accessibility for customers, contributing to a more inclusive ecosystem."
Money 20/20 Asia will take place on April 22-24, 2025, at the Queen Sirikit National Convention Center in Bangkok, Thailand. The complete report The Future of Fintech in Asia can be found here.
Source: Midas PR
