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Fintech - Industry - Asia Pacific Market, Share and Trends 2023-2028

Report ID:

FIIND1A

|

Industry:

Summary of Fintech

Asia Pacific’s fintech sector is booming – funding reached $35 billion in 2022 across over 2,500 deals. Fintech adoption nears 90% in advanced economies like Singapore, Hong Kong and Australia. Based on our estimates, we can say that the regional Asia-Pacific’s Fintech industry is forecasted to be a $1719.6 billion industry in 2029 from $630 billion in 2023 with a CAGR of 17.58 %.

China, India and Indonesia anchor regional innovation. Trends reflect superapp convergence, blockchain modernization, and sustainability action. Challenger disruption also shakes incumbents defending market share.

Pandemic impacts differed greatly – Chinese volumes rebounded quickly while developing markets contended with more prolonged effects. Digital transactions grew over 40% since 2019, now exceeding $10 trillion annually.

Regulation balances risks against market stimulation for financial inclusion and economic growth. India mandated open banking. Singapore enables crypto. Australia requires consumer data sharing. Sandboxes test new models across Thailand, Malaysia, Taiwan and more.

Unicorns like Razorpay and Pine Labs enable embedded business payments. Insurtechs like PasarPolis micro-cover emerging middle classes. Trends point to open data ecosystems and platformization delivering financial services amid daily applications from social to commerce.

Recent Trends and Insights

Alipay and WeChat integrate payments, banking, lending and more. Partnerships drive value-added services and distribution. Regional followers like Paytm, Grab, Gojek and Line also converge offerings.

Digital banks like WeBank, KakaoBank and Kbank lure customers from incumbents struggling with legacy systems. Australia neobank Xinja focused on sustainability. Account aggregators in India allow consumers to easily share financial information with trusted third parties that enables access to more services.

Incumbents vigorously defend market share from agile neobanks and big tech disruptors like Ant Group. M&A also continues – Grab acquired insurtech Bento to expand protection products. Regional collaboration seems essential for global competitiveness across borders.

The Asia-Pacific (APAC) region— spearheaded by India, China and Indonesia— is poised to outpace the US and become the world’s top fintech market by 2030, at a projected compound annual growth rate (CAGR) of 18 per cent, according to our analysis.

These regions – which are an underpenetrated market with nearly $4 trillion in financial services revenue pools – have the largest fintechs, a large underbanked population, a high number of SMEs and a rising tech-savvy youth and middle class, according to multiple industry insights

Product Insights

Banks like DBS and OCBC introduce integrated wealth management, accounting, forecasting tools and more within existing mobile apps rather than via partnerships. Carbon tracking and offsets are integrated into cards, loans and investments. Temenos offers packaged ESG reporting for banks. Policy pushes disclosures.

Startups like Igloo and PasarPolis enable pay-as-you-go insurance for small needs rather than annual policies. Claims processing leverages automation. Blockchain trade finance platforms improve transparency, speed and access across borders. DBS Bank facilitates open account trade based on digital purchase orders.

Startups apply IoT sensors, satellite imagery and alternative data to assess credit risk across small farms and predict future yields to enable access.

Crypto wallet adoption exceeds 100 million. Central bank digital currency pilots are underway. Enterprise blockchain projects expand in trade finance, payments, and supply chain transparency. Uber works with partners to introduce earnings, banking, insurance and wealth products to drivers and couriers across Asia via its app.

Key Companies

Some major players within this vast domain of industry are

  • Ant Group
  • PineLabs
  • Phonepe
  • VoltBank
  • Grab
  • Policy Bazar
  • Judobank
  • WeLab
  • PayPay
  • CRED
  • Harmoney

Regional Analysis

Asia Pacific’s fintech sector leads in adoption and funding momentum, though most startups remain early stage so far. Australia and Singapore lead for per capita attractiveness. Government support and investment is growing across real-time payments, blockchain projects and more.

Fragmentation poses scaling challenges – geographic, cultural, language and regulatory variances across 27 different countries. Alipay and WeChat Pay solved through platformization but open banking differs across markets. Partnerships bridge gaps where regulation allows.

Investments concentrate on payments, lending and wealth management so far. Insurtech, regtech and climate tech seem poised for growth given trends in microproducts and sustainability reporting requirements.

As digital connectivity improves and smartphone ownership continues rising across emerging APAC populations, embedded finance could profoundly expand financial access. Super apps combine with trends in blockchain, data sharing and automation to enable the unbanked.

The rise of digital lending platforms such as: Razorpay, has enabled businesses and individuals to access financing more easily and efficiently. The growth of insurtech companies such as: Policy Bazar, has transformed the insurance industry by offering more user-friendly and personalized services. These add onto the propelling nature of the ‘Fintech’ market in this region.

Market Segmentation

By Type:

  • Ecommerce platforms and mobile apps
  • AI-powered product recommendations and personalized shopping
  • AR/VR for virtual try-ons and interactive displays
  • IoT solutions for supply chain and inventory management

By End User:

  • Retail chains, franchise brands
  • Grocery stores and supermarkets
  • Direct-to-consumer brands
  • Online marketplaces

By Enterprise Size:

  • Large retailers
  • Small and mid-sized stores
  • D2C startups

By Country:

  • China
  • India
  • Japan
  • Indonesia
  • South Korea
  • Australia

Our Methodology

We have offered a well-founded review of Asia-Pacific’s regional fintech industry along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.

We value your investment and offer free customization with every report to fulfil your research needs.

Frequently Asked Questions

The Asia Pacific Size of the Fintech Industry is USD 630 Billion in 2023 and is expected to grow to USD 1719.6 Billion by 2029

The CAGR of the Fintech Industry Market in Asia Pacific is 17.58%

The China region accounts for 35% of the total market share of the Fintech Industry Market

The key players in the Fintech Industry Market in Asia Pacific are Paytm, Gojek, Grab, Ping An and Lufax. These industry leaders collectively contribute to shaping the landscape of this market and driving growth within the industry.

The factors driving the Fintech Industry Market in Asia Pacific are Phone Payments, Money Transfers, Quick Loans, Risk Protection and Asset Holdings. These factors contribute to the overall growth of this industry, establishing it as a key player in the interconnected global economy.

Summary of Fintech

Asia Pacific’s fintech sector is booming – funding reached $35 billion in 2022 across over 2,500 deals. Fintech adoption nears 90% in advanced economies like Singapore, Hong Kong and Australia. Based on our estimates, we can say that the regional Asia-Pacific’s Fintech industry is forecasted to be a $1719.6 billion industry in 2029 from $630 billion in 2023 with a CAGR of 17.58 %.

China, India and Indonesia anchor regional innovation. Trends reflect superapp convergence, blockchain modernization, and sustainability action. Challenger disruption also shakes incumbents defending market share.

Pandemic impacts differed greatly – Chinese volumes rebounded quickly while developing markets contended with more prolonged effects. Digital transactions grew over 40% since 2019, now exceeding $10 trillion annually.

Regulation balances risks against market stimulation for financial inclusion and economic growth. India mandated open banking. Singapore enables crypto. Australia requires consumer data sharing. Sandboxes test new models across Thailand, Malaysia, Taiwan and more.

Unicorns like Razorpay and Pine Labs enable embedded business payments. Insurtechs like PasarPolis micro-cover emerging middle classes. Trends point to open data ecosystems and platformization delivering financial services amid daily applications from social to commerce.

Recent Trends and Insights

Alipay and WeChat integrate payments, banking, lending and more. Partnerships drive value-added services and distribution. Regional followers like Paytm, Grab, Gojek and Line also converge offerings.

Digital banks like WeBank, KakaoBank and Kbank lure customers from incumbents struggling with legacy systems. Australia neobank Xinja focused on sustainability. Account aggregators in India allow consumers to easily share financial information with trusted third parties that enables access to more services.

Incumbents vigorously defend market share from agile neobanks and big tech disruptors like Ant Group. M&A also continues – Grab acquired insurtech Bento to expand protection products. Regional collaboration seems essential for global competitiveness across borders.

The Asia-Pacific (APAC) region— spearheaded by India, China and Indonesia— is poised to outpace the US and become the world’s top fintech market by 2030, at a projected compound annual growth rate (CAGR) of 18 per cent, according to our analysis.

These regions – which are an underpenetrated market with nearly $4 trillion in financial services revenue pools – have the largest fintechs, a large underbanked population, a high number of SMEs and a rising tech-savvy youth and middle class, according to multiple industry insights

Product Insights

Banks like DBS and OCBC introduce integrated wealth management, accounting, forecasting tools and more within existing mobile apps rather than via partnerships. Carbon tracking and offsets are integrated into cards, loans and investments. Temenos offers packaged ESG reporting for banks. Policy pushes disclosures.

Startups like Igloo and PasarPolis enable pay-as-you-go insurance for small needs rather than annual policies. Claims processing leverages automation. Blockchain trade finance platforms improve transparency, speed and access across borders. DBS Bank facilitates open account trade based on digital purchase orders.

Startups apply IoT sensors, satellite imagery and alternative data to assess credit risk across small farms and predict future yields to enable access.

Crypto wallet adoption exceeds 100 million. Central bank digital currency pilots are underway. Enterprise blockchain projects expand in trade finance, payments, and supply chain transparency. Uber works with partners to introduce earnings, banking, insurance and wealth products to drivers and couriers across Asia via its app.

Key Companies

Some major players within this vast domain of industry are

  • Ant Group
  • PineLabs
  • Phonepe
  • VoltBank
  • Grab
  • Policy Bazar
  • Judobank
  • WeLab
  • PayPay
  • CRED
  • Harmoney

Regional Analysis

Asia Pacific’s fintech sector leads in adoption and funding momentum, though most startups remain early stage so far. Australia and Singapore lead for per capita attractiveness. Government support and investment is growing across real-time payments, blockchain projects and more.

Fragmentation poses scaling challenges – geographic, cultural, language and regulatory variances across 27 different countries. Alipay and WeChat Pay solved through platformization but open banking differs across markets. Partnerships bridge gaps where regulation allows.

Investments concentrate on payments, lending and wealth management so far. Insurtech, regtech and climate tech seem poised for growth given trends in microproducts and sustainability reporting requirements.

As digital connectivity improves and smartphone ownership continues rising across emerging APAC populations, embedded finance could profoundly expand financial access. Super apps combine with trends in blockchain, data sharing and automation to enable the unbanked.

The rise of digital lending platforms such as: Razorpay, has enabled businesses and individuals to access financing more easily and efficiently. The growth of insurtech companies such as: Policy Bazar, has transformed the insurance industry by offering more user-friendly and personalized services. These add onto the propelling nature of the ‘Fintech’ market in this region.

Market Segmentation

By Type:

  • Ecommerce platforms and mobile apps
  • AI-powered product recommendations and personalized shopping
  • AR/VR for virtual try-ons and interactive displays
  • IoT solutions for supply chain and inventory management

By End User:

  • Retail chains, franchise brands
  • Grocery stores and supermarkets
  • Direct-to-consumer brands
  • Online marketplaces

By Enterprise Size:

  • Large retailers
  • Small and mid-sized stores
  • D2C startups

By Country:

  • China
  • India
  • Japan
  • Indonesia
  • South Korea
  • Australia

Our Methodology

We have offered a well-founded review of Asia-Pacific’s regional fintech industry along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.

We value your investment and offer free customization with every report to fulfil your research needs.

Frequently Asked Questions

The Asia Pacific Size of the Fintech Industry is USD 630 Billion in 2023 and is expected to grow to USD 1719.6 Billion by 2029

The CAGR of the Fintech Industry Market in Asia Pacific is 17.58%

The China region accounts for 35% of the total market share of the Fintech Industry Market

The key players in the Fintech Industry Market in Asia Pacific are Paytm, Gojek, Grab, Ping An and Lufax. These industry leaders collectively contribute to shaping the landscape of this market and driving growth within the industry.

The factors driving the Fintech Industry Market in Asia Pacific are Phone Payments, Money Transfers, Quick Loans, Risk Protection and Asset Holdings. These factors contribute to the overall growth of this industry, establishing it as a key player in the interconnected global economy.

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Understand the macroeconomic situations that affect the global positioning of countries.

Businesses can better understand how chatbots can advocate their vision.

DeFi helps reduce dependency on traditional methods of transactions.

Creating a sustainable environment for driving multiple countries into a better tomorrow.

Understand how the U.S. discrepancy in accordance to their debt creates a havoc. 

Sustainable blockchain technology has immense benefit for the environment which cannot go unnoticed.

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rfc logo transparent

Featured Reports

Understand the macroeconomic situations that affect the global positioning of countries.

Businesses can better understand how chatbots can advocate their vision.

DeFi helps reduce dependency on traditional methods of transactions.

Creating a sustainable environment for driving multiple countries into a better tomorrow.

Understand how the U.S. discrepancy in accordance to their debt creates a havoc. 

Sustainable blockchain technology has immense benefit for the environment which cannot go unnoticed.