South-east Asia's fintech ecosystem is growing

Subject

Expansion of fintech in South-east Asia.

Significance

South-east Asia is primed for a rapid expansion of financial technology ('fintech'), despite a lack of both digital infrastructure and region-wide regulation. The region is seeing growing demand for electronic payments.

Impacts

• As fintech develops across South-east Asia, acquisitions of smaller local companies by large players will increase.
• In many local markets, foreign companies will be forced to rely on local fintech providers.
• New regulations could provide opportunities for new forms of digital protectionism.
• Malaysia is well positioned to be a leader in Islamic fintech.