What fintech solutions will appeal to the next generation of Asian consumers, and how will this influence the way investors will bet on the Asian fintech market in the coming year? EY takes a stab at answering.
Professional services firm EY brought together a group of 22 senior Asia-Pacific financial services executives, investors and fintech founders for a roundtable event in Singapore as part of the annual ‹Singapore Fintech Festival› last November.
In Asia, the average fintech deal size has been increasing as the sector matures, the consultant said in a white paper. Alternative lending has comprised 40 percent of total Asian fintech funding in the last five years, with consumer finance in second place at 26 percent.
Industry Rebuild
While most attendees name bitcoin and crypto to be the money makers in the next 12 months, investment in regulation technology, or regtech, is also set to grow in the coming years as China bolsters anti-money laundering and digital identity management initiatives, the report says. Currently, China contributes 80 percent of fintech investment in Asia.
«Internet companies are ‹rebuilding› the financial services industry by collaborating with fintech start-ups to be competitive in niche areas,» EY’s Asean Fintech Leader, Varun Mittal (pictured left), said.
Mobile Take-Up
As smartphone becomes the primary mode of consumption, a large segment of the economy will become digitized, creating a massive «new economy» opportunity where services can be provided in a real-time, location-based and decentralized manner.
Traditional institutions, be it financial services or otherwise, will need to start evaluating collaboration with multiple tech innovations that are disrupting the various industry verticals, including new telecommunications, media, healthcare, govtech and retail.
- EY's report details current and future fintech and startup investment trends. For more insights.
