There is a growing need for innovation in the Asia-Pacific region. With the support from local governments, big things are bound to happen sooner or later. So far, it seems financial regulators are pro-fintech in this part of the world. Singapore, Malaysia, and Indonesia are all in favor of fintech developments awe speak. Moreover, these regions are the main catalysts for fintech growth in the Asia-Pacific region last year.
Innovation in the financial sector comes in different forms. Whether it is shopping, payments, banking, or purchase insurance, anything and everything will be revolutionized in the future. There is a wave of financial technologies waiting to gain more traction. In the Asia-Pacific region, it has become evident these trends influence consumer behavior and interactions. That trend will only continue to become more apparent in the coming years.
The new study by Frost & Sullivan predicts an interesting future for the Asia-Pacific region. According to their data, the local fintech industry will grow to a $72bn market by 2020. That is quite steep growth in such a short amount of time. With digital payments growing in popularity, that goal may be reached without too many problems. Peer-to-peer financing is also on the rise, which is another disruptive trend fueled by fintech innovation.
As one would expect, the emerging trends are not hard to spot. A cashless society is still a top priority for most countries in the Asia-Pacific region. Singapore, for example, hopes mobile payment can dethrone cash over the next few years. Only time will tell if such a shift will ever take place though. While mobile payments are convenient, they do not offer the financial freedom associated with cash.