In today's world, consumers look for convenience in every aspect of their life. That's why technology has become central in people's every-day-life and is widely used for both basic and complex functions; and also the reason for the widespread adoption of fintech services across the globe, especially in the Asian-Pacific region. Consumer's use of FinTech-powered services has increased—and in some cases tripled— in only two years across key Asia-Pacific economies. As a demonstration, FinTech adoption is 67% in Hong Kong, Singapore, and South Korea, and 58% in Australia.
It is becoming clear that Fintech will continue to be a growing leader in the economic sector; however, what are the trends that are surfacing? Let’s take a look at it together!
Advancing Virtual Payments
Over the past decade, cash transactions plummeted in the region becoming more evident, especially during the pandemic. For example, Singapore’s cash transactions dropped to 37% compared to 65% in 2010. The same scenario happened for both Malaysia and Indonesia which dropped respectively to 64% and 77%.
More and more people in the Asia Pacific are getting access to banks, making VCCs more popular. Therefore, with the prevalence of online stores and payment apps, VCCs can bridge the gap. With all these benefits that it provides, it is no surprise that VCCs are now taking the lead.
The Rise Of Green Finance
APAC governments, especially Hong Kong and Singapore, are putting sustainability as a priority and promoting environmental, social, and governance (ESG) metrics as part of their agendas for economic growth.
In Singapore, the Monetary Authority of Singapore (MAS) laid out plans in 2019 to invest US$2 billion in developing the country as a green finance hub and promoting sustainable financing in the financial sector. That’s why green finance is the future of the financial sector, because of its innovative financial mechanisms and interest in supporting projects with positive and sustainable externalities.
AI-driven Financial Services
The latest edition of the Fintech and Digital Banking 2025 (APAC) report found that 60% of banks in the Asia Pacific will leverage artificial intelligence (AI) or machine learning (ML) technologies for data-driven decisions, compared to 48% from the previous year. This empowers banks to provide personalized offerings to customers based on their financial behavior and the services that are being used. In addition, AI empowers banks with fraud detection, lending approvals, risk monitoring, and investment proposals. These intelligent value-added services provide customers with better usage, security, and an overall enhanced experience.
The emergence of Financial SuperApps
“SuperApps” is the next generation of mobile app platforms that offer a range of features and convenient solutions driving a high-user-engagement across large audiences. This ecosystem application is driving growth in the FinTech industry, addressing the growing demands for an “all-in-one” financial app.
Adapt quickly to these trends with the Jenji solution
As you may see, the digital era is upon us, and those who don't adapt will be left behind. Therefore, to stay competitive, companies in the APAC region will need to invest in digital technology and be willing to adapt their processes.
At Jenji, we specialize in digital transformation, and thanks to our AI solution, we can help companies to digitize their expense management process.
Request a demo today to learn more about how we can help you save money and streamline your processes.