Fintech has revolutionalised the payments industry and apart from the grand global success, its presence in the Southeast Asian markets has attracted many companies from all over the globe to invest and branch out in the region, in addition to already plentiful local players.
E-commerce has made a strong impact on the rise of digital payments, and alongside that, digital lending has emerged as a highest-grossing business model in ASEAN. Innovation in fintech can be found in many of the services available on the market, such as online multi-currency exchange in online multi-currency invoice platforms, software to handle insurance claims, funds distribution and funding management, and finance and investment management for SMEs. Combined with AI, fintech is enabling technology adopters to personalise and customise user experience, as well conduct predictive data analysis.
As a whole, digital financial services are expected to generate US$ 38 billion in revenue by 2025 in Southeast Asia. In comparison, in 2019, annual revenue of the sector was US$ 11 billion. The driving force behind the rise of fintech are consumer trends, which are in turn shifting as a result of digitalisation. There is also high level of consumer adaptation and trust in these technologies, creating new business opportunities and new markets for many local companies.
Source: e27
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December 20, 2019
