Asia, driven by fierce competition, has been a global leader in terms of FinTech adoption. Let’s take a look at 3 key trends expected to define FinTech in Asia over the coming years:
- China continues to be a leader. China is still the market setting the pace for FinTech innovation in the world. Unencumbered by legacy technology and aided by their integration with China’s powerful and ubiquitous e-commerce and social media platforms (e.g. Alibaba and WeChat), FinTech services are now thoroughly integrated into the life of Chinese consumers.
- The landscape is constantly changing. Over the next few years, many more changes are expected to come to the Asian financial services landscape, most of which will be driven by advances in technology, loosening regulations and increased competition. The 3 biggest changes are expected to be: (1) continued deregulation, (2) increased competition with virtual banks and (3) the true takeoff of open banking.
- Competition is everywhere. Most Asian markets continue to benefit from a powerful FinTech feedback loop, with increased adoption driving increased innovation – and vice-versa. Mainland China still leads in consumer and SME-focused financial services innovation, but in other Asian markets, Chinese investments are driving rapid market penetration and innovation. In India, in particular, competition between Chinese giants and U.S. tech companies for slices of the colossal, fast-growing market are driving rapid changes.