Money20/20's whitepaper explores APAC fintech evolution

Money20/20 has released a new whitepaper titled 'The Future of Fintech in APAC'. It provides an in-depth look at the evolving fintech landscape in the Asia-Pacific region.

The whitepaper draws on interviews and surveys from over 50 key fintech stakeholders across Asia, including countries such as Thailand, Singapore, Malaysia, and Hong Kong. The report highlights that nearly one in three stakeholders prioritise expansion into Southeast Asia, with over 95% emphasising financial inclusion and social good as primary regional objectives.

The report critically focuses on Southeast Asia's fintech potential, advocating human-centric approaches to enhance accessibility and achieve success. It also explores current trends and challenges transforming customer service and financial access throughout the region.

Innovation within banks is a key theme, as the report identifies efforts by both digital and traditional banks to improve customer experiences through technological advancements and strategic localisation. Legacy banks' use of AI, blockchain, and cloud computing is a marker of this evolution, with these technologies helping modernise systems and expand reach. The convergence of digital and traditional banks via similar tech adoption is diminishing previous divides.

The Asia-Pacific region is leading advancements in digital payments, with innovative systems such as PayNow, PromptPay, and UPI contributing to a 20.4% growth in non-cash payments in 2024 compared to the previous year. Cross-border payments, facilitated by blockchain and fintech collaborations, are being revolutionised by such initiatives as Project Nexus and the partnerships of Thailand's SCB with Lightnet and Singapore's Project Ubin. These advancements are underpinned by clearer regulatory frameworks within Southeast Asia.

The report notes a shift toward specific integration and user experience improvements in the evolving field of embedded finance. Leaders such as GCash, Boost, and BigPay are at the forefront, enhancing access to payments, lending, and banking services. A shift away from 'super app' offerings toward industry-specific services is noticeable, with fintech collaborating increasingly with banks to create tailored solutions that integrate financial services more deeply into everyday platforms.

Challenges to financial inclusion, such as low digital literacy and insufficient infrastructure, remain prevalent in the region. Approximately 20% of respondents in the study focus on market expansion, while 19% concentrate on product innovation to tackle these issues. Partnerships and regulatory compliance are key priorities for 15% and 12% of stakeholders in overcoming these barriers, respectively.

Ian Fong, Asia Content Director at Money20/20, commented, "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."

Michele Fung, General Manager at Lianlian Global, remarked, "Fintech in Hong Kong stands at the forefront of a dynamic evolution, leveraging the city's position as a global financial hub. The findings of this report underscore Hong Kong's and regional emphasis on innovation and cross-border collaboration, backed by its forward-thinking regulators. As we prepare to attend our second Asia show, we are eager to explore how Hong Kong's leadership will influence the next wave of fintech transformation in the region."

This whitepaper's comprehensive research illuminates Asia's dynamic and competitive fintech environment. It also outlines strategies for stakeholders to address emerging trends and industry challenges.