When looking at the APAC investment market over recent years, FinTech will feature prominently. So-called "financial technology" has been a game changer for the stock market and financial services sector. Many believe that the rise of FinTech in the APAC region is reshaping the investment landscape.
Evolution of Fintech in APAC
Looking back at the APAC investment market, there has always been heightened activity in technology. This area is seen by many as a hotbed for new technology, so it was no surprise that the APAC region featured prominently with the early developments and adoption of FinTech. To put this into perspective, the global FinTech sector is expected to generate revenues of $1.5 trillion by 2030, with the APAC region set to outpace America as the world's top FinTech market.
Fintech and Traditional Investment Institutions
We have seen the development of subsectors of the FinTech industry, in the shape of WealthTech, InsurTech, etc., with these industries revolutionising business and investment across the APAC region. The billions of dollars raised in the APAC investment market have been used by FinTech companies to disrupt traditional marketplaces. In some cases, these disruptors have rewritten the business model of companies that have been around for decades.
Fintech and Retail Investors
It is rare to see a sector that changes the investment landscape and the investment services available for investors at the same time. In tandem with AI/machine learning developments, we have seen the introduction of robo-advisors and easy-to-use mobile trading apps. The APAC investment market also leads the way in using FinTech to create alternative investment solutions. Some describe this as democratising investment, effectively making financial services more accessible to the masses.
Fintech and the Regulatory Environment
As is often the case in the Far East, regulators for the APAC investment market have been working closely with FinTech companies to introduce new regulations and a certain degrees of control. It is no secret that many people are concerned about AI and machine learning, not only the impact on jobs but also on data and the power over our everyday lives. This enhanced regulation has created a welcoming environment for FinTech companies looking to raise funds, hence the recent growth in the APAC investment market FinTech sector.
Fintech and Financial Inclusion
It is easy to forget the massive impact of FinTech on previously excluded members of the population. So-called "financial inclusion" has been huge in countries like India, where historically many have not been able to access even the most basic banking facilities. Financial inclusion will bring finances to the masses and release some of the substantial pent-up potential of many countries.
Future Trends and Challenges
As we mentioned above, the original FinTech sector now has a range of subsectors, which are significantly impacting numerous financial services. Recent figures show that the APAC investment market is fast becoming the global FinTech hub. This was perfectly demonstrated last month when financial institutions with £100 billion under management visited London Tech Week looking for investment opportunities. FinTech, digital assets and private equity, the APAC investment market is leading the way in so many different fields.