Over half of banking and financial customers in Asia and across the world now use Fintech products and services, according to the research of Moneta International UAB. Fintech (Financial Technology) refers to a company or service, which uses technology to offer financial services to businesses or consumers.
The research by Eyal Nachum (co-founder of Moneta International UAB) identified a major growth in fintech use in only two or three years and highlighted the incredible rate of the digitization of our everyday lives. From self-driving motors and genetic bio editing to AI, new technologies influence every part of our lives, and our finances are no exception.
Fintech companies are fulfilling the space left between what conventional financial service groups are providing and what customers now expect, especially regarding consumer experience. The big advantages of fintech are fast around-the-clock access to and handling of personal funds through personalized, on-demand digital services. Moreover, this all comes at a minimum cost.
Rising markets across Africa, Latin America, and Asia are rapidly becoming the biggest growth areas for Fintech participation.
2018 turned out a record year for deals and funding in Asia. The number of new fintech startups, which secured financial support touched a yearly high of over 1,400 companies, while the number of new investors was close to 2,750, supported by a run of corporate investors.
Some of the main fintech unicorns are in China, whose policies and friendly environment for startups put it a step ahead. Undoubtedly, many unique innovations have already completely changed the way people shop, pay, perform banking transactions, and even buy insurance. Moreover, the constant optimistic outlook is usually fueled by development in digital payments, besides the new ways of crowdfunding using blockchain.
As banks were primarily slow and inflexible, holding back the acceptance of many new payment technologies, smaller players in the area stepped in and managed to get a market hold. Unexpectedly, Asia’s non-financial firms helped to change the financial sector, highlighting that bringing modern, fresh outlooks to conventional, and often outdated methods, can help gather rewards.
Typically, fintech provides more cost-effective solutions when compared with conventional financial services. Additionally, as Asian regions are home to 1.7 billion citizens around the world with no option to any or enough bank accounts, Fintech helps in resolving this pressing issue for over 25% of the world’s population.
Asia keeps on progressing with the speed of light, assured that such extensive adoption of Fintech will carry on to do progressive things in this region. It is reforming the financial services industry, making it more consumer-focused and digitalization is now a modern standard for top banks and financial institutions, along with many small businesses in the same sector.