State of FinTech in ASEAN

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ASEAN is witnessing visible growth in FinTech. In 2016, investments in the Southeast Asian FinTech market increased to US$252 million, compared with US$190 million in 2015, a rise of about 33 per cent.

Demand for FinTech solutions in ASEAN is underpinned by the rapid adoption of technology, high-levels of mobile usage and rising rates of internet penetration, an increasingly urban, literate and young population, as well as a segment of consumers and small and medium sized enterprises (SMEs) underserved by traditional banking solutions. These factors and the economic potential of ASEAN have also attracted large numbers of investors to the region.

EY - Drivers of FinTech in ASEAN
  • Drivers of FinTech in ASEAN
    • Robust macroeconomic growth and a young urban population will drive FinTech demand in ASEAN
    • Banking penetration remains low for the majority of ASEAN countries
    • ASEAN is ripe for digital adoption
    • Consumers are ready for FinTech Solutions
    • Regulators are embracing change
EY - Trends across sub-sectors
  • Trends across sub-sectors
    • Payments
    • Remittances
    • Peer-to-peer (P2P) lending
    • Savings and investment
    • Emerging areas of technology: InsurTech, blockchain, Artificial intelligence (A.I,)
EY - Future of financial services in ASEAN
  • Future of financial services in ASEAN
    • Increased ASEAN-wide cooperation needed to drive digital innovation 
    • Nurturing the right talent
    • Collaboration between banks and FinTechs – the way forward
    • Abundant supply of FinTech funding in ASEAN

 

Acknowledgements


This is a joint paper developed as part of our collaboration with United Overseas Bank (UOB), Singapore FinTech Association and the ASEAN FinTech Council. The views of third parties set out in this publication are not necessarily the views of the global EY organization or its member firms. Moreover, they should be seen in the context of the time they were made.