Fintech is undoubtedly the future of finances and with improved strategies that tend to be much more reliable than traditional methods, a variety of countries are on the lookout to encourage economic growth through technology. In the past, the United States held the major focus with its fame being the destination for a wide array of technological enhancements. But indeed, the tables sure have turned and now, according to the World Bank’s statistics, with equal competency Southeast Asia is a leading agent for tech ecosystems.

Being one of the fastest growing regions in the world, the number of advocates of technology makes it easier for Southeast Asia to develop its vision and accelerate digital adoption. But will an increased percentage of mobile engagements and internet users be enough? How does the future of fintech look like in Southeast Asian regions at a glance?

COVID-19; Positive or Negative?

Covid-19, the major outbreak disrupted a number of world schedules and inflicted devastating impacts on a variety of industries, other than pharmaceuticals and sanitary companies, of course. But with people moving their lifestyles towards getting things done online, there isn’t much for the Southeast Asian community to complain about. Its financial services are all set to embark and outreach digitally with fintech firms winning an undoubtedly superior favor. With cash withdrawals and deposits now replaced through online banking and payments, fintech firms and even start-ups are now focused on customizing their services to standout, in turn involuntarily peaking the industry.

What are the proven statistics?

According to a leading fintech company, Finch Capital, Singapore is defined as the major base for fintech firms. The company draws its basic focus on Singapore, Vietnam and Indonesia for being the Fintech leaders in the Southeast Asian region and it is concluded that the biggest contributors to the internet economy includes e-Commerce and Ride-Hailing sectors. With Indonesia having the larger population, it records the highest number of internet users, internet GMV and Internet MV growth percentages. However, with Singapore being the leading tech atmosphere, it holds the highest investments for FinTech VC.

The amenities fintech has influenced for the economy of South East Asia can be observed through a single prominent category; online auction investing. This low-risk investment concept and its supportive platforms that are centered to promote a secure environment in order to boost profit using fair-price bidding mechanisms, are undoubtedly, warmly welcomed by both private investors and corporate investors. Indonesia, specifically has displayed massive interest on the marvels of online auction investing and it can be concluded that such ecosystems may influence gradual growth for the whole of South East Asia’s fintech market.

Fintech for Economy? How?

Surely fintech advancements for a region like Southeast Asia are impressive, but is that all? With the above proven and analyzed data, will it truly be a surprise to hear that fintech is renowned to be Southeast Asia’s largest VC (venture capital) investment category by number of backed start-ups? The results of a recent research conducted globally has insisted that within 5 years, the fintech industry has been able to accelerate its investments and accumulate over a billion’s extra investments, which further displays a fascinating statistic.

Currently the statistics conclude an investment that stands at 1.6 billion USD as per last year and it will surely not be a surprise for this value to keep peaking within the years to come by. With a number of Southeast Asian countries making significant investments every year, and technology being of increasing value with each passing year, it is no doubt that the Southeast Asian economy will have its most phenomenal revolution yet. In fact, fintech in this region can be as competitive or even outreach the development of countries that hold bigger revenues and facilities.

The internet is surely everything at the moment, from where we stand. Banking, e-commerce and even lending are all done through technology-based platforms. This is made possible with the urge of online firms that develop gradually and involuntarily with additional creative innovations in order to establish themselves above their competitors. For Southeast Asian countries, fintech is more than just another industry and a slight source of economy. With the current generations seeking conveniences and modern solutions, Southeast Asia is yet to uncover its most powerful economy tool; fintech.