• Asia’s fintech market is valued at nearly USD 150 billion, and this total could double by 2030
• Many governments support digitalisation and have recognised the role foreign companies with existing solutions can play in supporting these efforts
• Opportunities and requirements vary greatly from country to country meaning overseas firms may require local assistance for successful market entry

Fintech is arguably the most overlooked technology segment in Asia. While competition is fierce in the e-commerce, ride-sharing, delivery, and property portal spaces, just to name a few, the need for digital financial solutions in countries throughout the region is massive and currently not being met. In the first instalment of our series looking at Asia Market Opportunities in 2025, Asian Insiders Managing Partner Jari Hietala shares insights on what makes fintech a promising sector.

Digitalisation has transformed a wide range of industries over the years. This usually is portrayed as a disruption of the status quo. In reality, it should be viewed as providing greater access. Goods, services, tools, and information are more accessible today than at any point in history.

Banking and the broader financial industry are among the few remaining holdouts of rapid digitalisation. There have been some advancements in the form of cashless payments and digital banking, but overall progress has been relatively slow.

A major reason for this is regulation. Many countries have struggled to create the necessary framework required for oversight. The tide is shifting, however, as governments come to terms with what they stand to lose by not embracing fintech.

Asia’s fintech market is predicted to be valued at nearly USD 150 billion in 2024. This figure could potentially double by 2029. Compound annual growth rate (CAGR) projections vary between 16 and 27 percent over that span.

Should the latter figure be achieved, it would make Asia the world’s largest fintech market. Even if growth comes in toward the bottom end of projections, there are still massive opportunities that can be tapped into. To put this into better context, look at the number of fintech companies in the region when compared to the Americas and Europe, the Middle East, and Africa (EMEA).

According to data from Statista, less than 20 percent of the world’s fintech firms are located in Asia. Simply put, current demand in the region isn’t being met, and growth will only exacerbate the gap in the market.

With Asia containing more than half of the world’s population, a large portion of which is considered unbanked or underbanked, there is a pressing need for everything from digital payment systems to blockchain technologies and even financial solutions for seniors. 

Ultimately, overseas companies boasting experience and solutions to solve existing challenges and assist with the digitisation of the financial sector will be able to find success.

Governments on board

The protectionist stance against fintech has subsided across Asia with many governments looking at how they can support digitalisation in an attempt to play catch up. Several countries have launched investor-friendly policies and access to foreign entities that they did not have a few years prior.

In Japan, foreign fintech businesses were granted access to the Zengin System, a network that connects banks digitally and clears funds following the transactions. British company Wise became the first overseas company to take advantage of this policy change, and more are expected to follow suit.

The Bank of Thailand has encouraged financial service providers in the country to accept fintech from abroad in order to keep pace with shifting consumer demands. Thailand’s Board of Investment (BOI) permits 100 percent foreign ownership of fintech companies that operate locally in addition to several other benefits.

Both Indonesia and Vietnam have made it easier for foreign firms to enter the market, although some restrictions are in place as it relates to permitted activities. Malaysia is another country where overseas fintech entities can find a favourable operating environment.

Two things worth mentioning are the requirements to begin business and the licensing process. These vary in each country, sometimes significantly so. While it is now easier for fintech companies to enter many Asian markets, you will still need to clear some regulatory hurdles.

Know before you go

For fintech companies or investors considering Asia, it is essential to understand that there is no one-size-fits-all strategy. Should you pursue market entrance, it must be done on a country-by-country basis since regulations and needs vary quite a bit.

Take Indonesia, for example. A focus area here is peer-to-peer (P2P) lending. Companies with technologies and financing models allowing for greater financial inclusion will find an accepting market where more than 90 million adults remain unbanked.

Meanwhile, Malaysia is a country searching for digitised regulatory technology and compliance solutions as well as blockchain innovation capable of providing greater security for fintech users.

Aging societies, such as Japan and Thailand, have a pressing need for silver solutions catering to their aging societies. Fintech capable of addressing healthcare financing and payments, wealth transfer, and pension-related services are in demand.

Singapore must be mentioned as well. It is a launching pad for foreign fintech companies that select it as a base for region-wide operations. A common practice is to launch here while finding the right markets for expansion.

There are also a few regional needs to highlight. Cross-border payment systems are growing in demand. Tourism-focused Asian economies, in particular, are searching for solutions to a problem that is seen as hindering growth.

Artificial intelligence (AI) is another segment with widespread interest. AI tools capable of supporting data analytics, chatbots, automation, and insight generation are being sought after by banks.

This is just scratching the surface of what is needed in Asia as it relates to fintech. Similar to scenarios that have unfolded in the Americas and EMEA, new products and services will be necessary as the sector grows.

Fintech is one of the biggest Asia market opportunities in 2025

Robust expected growth and broad support from various countries are among the reasons why fintech is highlighted among the Asia market opportunities to watch in 2025. There is a real need for solutions as the region looks to speed up the digitisation of banking and financial services.

However, companies must have a measured approach to expansion here. Having the right product but being in the wrong country or vice versa will lead to failure. There are also market-specific regulatory and logistical challenges which require a local understanding to overcome.

That is what makes market entry services crucial for long-term success. A partner, such as Asian Insiders, can remove guesswork from the process. From conducting detailed research and analysis to providing critical connections, you can ensure your fintech firm is best positioned to achieve its goals in Asia.

To learn more about fintech opportunities in Asia and assess your readiness to enter the market, schedule a no-obligation call with Jari Hietala, Managing Partner: jari.Hietala (at)asianinsiders.com