FinTech in ASEAN 2018: The Next Wave of Growth

ASEAN - an economic bloc of ten countries – is a region of diverse cultures, languages, business norms and regulatory frameworks. This diversity poses challenges when navigating its complexity, but also opportunities for those who can do so successfully.

It is also a region with a growing base of digitally-savvy and increasingly affluent consumers, an appealing proposition for those with innovative ideas and solutions to serve ASEAN’s consumer base.

Given the region’s strong economic growth potential and favourable demographics, it is not surprising that ASEAN is attracting significant investor and FinTech interest. According to data platform Tracxn, US$458 million had been invested into FinTech firms as at 26 October 2018, up 25 per cent from end-2017.

This report aims to highlight potential business opportunities and key FinTech trends in ASEAN, including:

The continued rise of FinTech firms in 2018

• FinTech firms attract more funding
• ASEAN FinTech firms ride the rising tide
• FinTech funding: Alternative lending sees the highest funding
• Diversity in ASEAN’s FinTech landscape

Five important ASEAN trends for FinTech firms

• Smartphones are levelling the playing field
• Growing pool of tech-savvy consumers
• Mobile payments – TechFin firms vs. FinTech firms
• Regulators up to speed with FinTech development
• Greater collaboration between banks and FinTech firms

Country snapshots

• Indonesia: Serious investment in alternative lending
• Malaysia: Empowering financial institutions
• The Philippines: From overseas remittance to domestic consumption
• Singapore: Wealth and small businesses attract investors
• Thailand: Pay and play
• Vietnam: Crypto buzz hits a speed hump

Looking forward: Small business, big opportunities

• Small businesses prepare for Industry 4.0
• FinTech firms tapping the SME market
• FinTech/digital solutions are ripe for adoption by SMEs
• FinTech in ASEAN: A symbiotic future