State of Financial Technology Companies in Asia Pacific 2023

Brankas Team May 10, 2023
State of Financial Technology Companies in Asia Pacific 2023

In the first half of 2022, the fintech industry witnessed a general investment dip due to global uncertainty, inflation, and economic factors. Investors became warier in their investments due to concerns about economies spiraling into recession while focusing on highly promising business models.

While the rest of the world was cautious, the Asia-Pacific (APAC) fintech industry remained resilient despite the economic factors at play. Digital transformation, open banking, and financial market infrastructures remained stable. APAC also had significant merger and acquisition (M&A) deals, including Block-Afterpay and Superhero-Swiftx.

How do these activities affect the state of fintech in APAC? From fast facts to the biggest fintech solutions and the future of fintech in APAC, this blog has got you covered.

Fast Facts: State of Fintech APAC
Global investments in the second half of 2021 dropped from $111.2 billion (3,372 deals) to $107.8 billion (2,980 deals) in the first half of 2022.
APAC’s fintech investment value of $41.8 billion  is higher than the Americas ($34.9 billion) and EMEA ($26.6 billion) in the first half of 2022. The APAC region’s population and fintech adaptation rate make it likely to be the biggest generator of revenue in the industry.
APAC fintech companies raised $3.3 billion in funding across 186 deals in Q1 2022.
The Asia-Pacific region is the biggest user of digital payments, with India and China at the forefront. Globally, APAC takes up two-thirds of mobile payment users.
Singapore has had the most fintech investments, with a total value of $2.14 billion in venture capital, private equity, and M&A activities. Deal values tripped from $263 million in the second half of 2021 to $946.61 million in the first half of 2022.

Fintech Companies in The Asia Pacific

Currently, the global fintech industry is still in its infancy. Despite that, many fintech companies have already made enormous strides in creating innovative and valuable financial services that solve major challenges like financial inclusion and open banking.

In Asia, which has an estimated 290 million unbanked population, fintech solutions are already making a huge impact, making APAC the highest-growing fintech industry in the world.

Outlook: What’s the Future of Fintech in Asia Pacific?

  1. Regulatory compliance will remain a priority

As the global economy recovers from one financial crisis after another, expect to see greater emphasis placed on data security and regulatory compliance. This may seem unfavorable, but it can actually strengthen the entire financial ecosystem, especially as cyberattacks on fintech companies become more common.

  1. Virtual bank competition heats up

Traditional banks face intense competition from virtual banks. In Hong Kong, eight virtual banks are already competing to acquire, retain, and serve more customers. Singapore, another Asia-Pacific financial hub, has already awarded licenses to five digital banks, offering more competitive interest rates, faster transactions, and a better consumer banking experience.

What sets virtual banks apart from brick-and-mortar counterparts is the ability of the former to stay agile and adapt to industry trends, which many traditional banks may be unwilling to do. But many brick-and-mortar banks are already starting to integrate digital payments, so it will be exciting to see how this will impact the banking industry.

  1. Consumer awareness is likely to increase

Countries with a low banking population in southeast Asia, like the Philippines, encourage their citizens to avail of digital banking services. The Bangko Sentral ng Pilipinas is optimistic about seeing digital banks as future partners in pushing financial inclusivity to APAC countries.

  1. Open banking takes off

Due to upward fintech trends, more Asian citizens will bank digitally. In 2021, Brankas financial services grew more partners to increase the state of fintech growth in Asia with 80+ network partners, 33.7 million monthly API calls, 13x transaction growth, and 80% market coverage in APEC countries.

Fintech Asia is on an Upward Trajectory

Despite global issues, the future of financial technology in APAC remains bright. In the age of digitalization, there is a greater need for businesses and financial institutions to connect with the use of newer technologies. There are many fintech services in the game, but there is still so much room for development.

It’s an exciting time to avail of other financial services. To help your bank take advantage of newer technologies, contact us today.

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