Insights on the future of APAC fintech from Money20/20

Money20/20, the fintech show and the place where money does business, has launched the The Future of Fintech in APAC white paper ahead of Money20/20 Asia in Bangkok on April 22-24.

Source: Money20/20. Cover of the report.

The white paper unveils insights into the fintech landscape, drawing on detailed interviews and surveys from over 50 key fintech stakeholders across Asia, including Thailand, Singapore, Malaysia, Hong Kong. 

The report also reveals that nearly one in three of these stakeholders, including banks, fintechs, and industry experts, prioritise expansion into Southeast Asia. Additionally, over 95% of participants highlighted financial inclusion and social good as top priorities for the region.

Highlights include:

Banks innovating for a unified future

The banking landscape in APAC is evolving rapidly, with digital and traditional banks striving to deliver superior customer experiences through technological innovation and strategic localisation. The divide between digital and legacy banks is diminishing as both adopt similar technologies and strategies to navigate regulatory challenges and meet customer demands in a highly interconnected financial ecosystem. 

Digital banks are leveraging ecosystems and partnerships to accelerate growth, though profitability remains a key challenge with only 5% achieving it globally. At the same time, traditional banks are adopting cutting-edge solutions like AI, Blockchain and cloud computing to modernise legacy systems, enhance efficiency, and expand customer reach.

APAC leading the charge

APAC is at the forefront of digital payments, with systems like PayNow, PromptPay, and UPI driving rapid adoption. In 2024, the region saw a 20.4% year-on-year growth in non-cash payments, outpacing Europe and North America. Cross-border payments are undergoing transformation through fintech innovations, with initiatives like Project Nexus integrating instant payment systems. 

Nearly one in five respondents ranked Blockchain among the top technologies impacting Asian fintech,with Thailand’s SCB’s partnership with Lightnet and Singapore’s Project Ubin Phase 5 two examples of how Blockchain is revolutionising cross-border payments. The increasingly clear regulatory landscape in these Southeast Asian countries has been crucial to these advancements, the white paper authors noted. 

Despite challenges around costs and regulations, growing collaboration between fintechs and traditional banks is making payments faster and more affordable. Meanwhile, cryptocurrency and central bank digital currencies (CBDCs) are paving the way for new payment solutions globally.

Embedded finance shifts focus to integration and user experience

Embedded finance is transforming Asia’s fintech ecosystem by integrating financial services into everyday non-financial platforms. Leaders like GCash, Boost, and BigPay are enhancing payment, lending, and banking access. Moving away from the "super app" model, embedded finance is becoming more industry-specific, with fintechs partnering with banks to develop tailored solutions. For example, digital wallets are enhancing cashless transactions in ride-hailing, improving convenience and security. As the space matures, the focus is shifting from innovation to consolidation, with a stronger emphasis on helping businesses integrate financial services into their operations.

Challenges for achieving financial inclusion

The report highlights barriers to financial inclusion in Asia, including low digital literacy, inadequate infrastructure, regulatory challenges, and unviable business models. To improve accessibility, nearly 20% of respondents plan market expansion, 19% focus on product innovation, and over 15% and 12% prioritise partnerships and regulatory compliance, respectively.

Ian Fong, Asia Content Director at Money 20/20, said: “The findings underscore the importance of human-centered approaches in driving fintech success. We are seeing a shift where regulators and traditional banks are open to discussion and collaboration with emerging fintech players on elevating user experience and broadening accessibility for customers, contributing to a more inclusive ecosystem.”

Michele Fung, GM at Lianlian Global said: “Fintech in Hong Kong stands at the forefront of a dynamic evolution, leveraging the city’s position as a global financial hub. The findings of this report underscore Hong Kong’s and regional emphasis on innovation and cross-border collaboration, backed by its forward-thinking regulators. As we prepare to attend our second Asia show, we are eager to explore how Hong Kong’s leadership will influence the next wave of fintech transformation in the region.”

Details

Money 20/20 Asia will take place from April 22-24, 2025, at the Queen Sirikit National Convention Center in Bangkok, Thailand. Read the The Future of Fintech in Asia report here.

*The Future of Fintech in APAC, created by Money20/20 Asia, is the result of a study conducted between May and November 2024. The research examined the needs and aspirations of Asia's fintech organisations in the context of current industry trends.

More than 50 key fintech stakeholders from Asia, including banks, fintechs, and industry experts, participated in interviews and surveys. The qualitative insights from these interviews, combined with data from a quantitative survey, offered broad, measurable insights into the industry's challenges, opportunities, and emerging trends.