Image

Digital Payments Power Growth in Booming Asia-Pacific Financial Technology Landscape, Notes Frost & Sullivan

The Asia-Pacific Financial Technology (Fintech) landscape is witnessing unprecedented growth with Fintech solutions and services expected to gross more than US$70 billion in revenue by 2020, with a CAGR of 72.5 percent.

Singapore, Hong Kong, and Sydney are innovation hubs due to favorable government regulations, start-up ecosystem and the 18-34 demographic group driving consumer demand.

The emergence of new business models is enabling players to innovate and invest in technologies such as Blockchain, digital payments, cloud services, cyber security, product lines and solutions. Players must rethink strategies and align their business vision with technology goals to define their value proposition to customers and survive in the rapidly evolving digital ecosystem.

"Asia-Pacific Fintech investment increased exponentially in 2015. There was a four-fold increase of investments in APAC Fintech companies from 2014 to 2015 which shows growing investor confidence in the Asia-Pacific region. 42 percent of the investment deals concentrated on digital payments," noted Ajay Sunder, Frost & Sullivan Vice President – Digital Transformation.

According to new analysis from Frost & Sullivan's Digital Transformation Growth Partnership Service program, Growth Opportunities in APAC Fintech Market, new innovative services providers such as BitSE, Canopy, Coinsecure, DxMarkets, Freecharge, HedgeSPA, MOLPay, Otonomos and TranServ are addressing unmet needs, embracing new technologies and gaining a disruptive advantage by leveraging diverse opportunities.

For complimentary access to more information and to register for a Growth Strategy Dialogue, a free interactive workshop with Frost & Sullivan's thought leaders, visit  http://corpcom.frost.com/forms/APAC_PR_MTan_P927_Nov16

The report discusses Fintech into 3 segments

  • Digital Payments
  • Personal and Business Finance
  • Financial infrastructure such as Blockchains

Growth opportunities players should tap into include:

Disruption and Collaboration: Players should research and develop new product capabilities and user experiences enabled by analytics, personalization, automation, and integrations.
Connected Communities: Players need to collaborate with start-ups to have a scalable impact and pass on the benefit to consumers.
Foreign Exchange and Remittance: Improve and differentiate offerings and unique value proposition through broader and deeper third-party integrations.
Organic/Inorganic Growth: Many mergers and acquisitions are expected as the market consolidates.
Untapped Market Opportunities: Make financial services available and affordable to unbanked people.
Industry Collaboration: Potential investors and leaders must nurture incubation and Fintech ecosystem development.
Big Data Analytics Capabilities: Harness big data opportunities to generate new profit sources by exploring new, innovative applications.
"Digital payment will remain the largest segment, primarily driven by mobile payment solutions, while Blockchain will not remain limited to financial services; there will be new use cases for Blockchain, and traditional ICT vendors will start offering Blockchain-as-a-Service," noted Sunder.

About Frost & Sullivan's Digital Transformation Team:

Growth Opportunities in APAC Fintech Market is part of the Digital Transformation team's Growth Partnership Services subscription. This research service explores market trends and opportunities that will shape the development of financial technologies across Asia-Pacific. For the purpose of this study, Fintech is categorized into digital payments, personal and business finance, and financial infrastructure and data analysis. Related studies include Analysis of Southeast Asian eCommerce Market, among many others. All studies in the subscription provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: Start the discussion