As the fintech landscape in Asia continues to evolve, the upcoming Money20/20 Asia event is set to showcase the industry's latest innovations from April 22-24, 2025, at the Queen Sirikit National Convention Center in Bangkok. Ahead of this pivotal event, a comprehensive whitepaper titled “The Future of Fintech in APAC” has been released. This report, based on insights gathered from over 50 fintech leaders across countries such as Thailand, Singapore, Malaysia, and Hong Kong, sheds light on the region's dynamic fintech environment and the strategic directions anticipated for the future.
The report reveals that nearly one-third of stakeholders, including banks, fintechs, and industry experts, consider Southeast Asia a priority for expansion. Furthermore, over 95% of respondents highlight financial inclusion and social good as crucial objectives, indicating a strong commitment to developing accessible financial services for diverse populations in the region.
In a marked shift, traditional banks in the Asia-Pacific (APAC) region are increasingly adopting advanced technologies such as artificial intelligence (AI), blockchain, and cloud computing to modernize their operations. This convergence of digital and traditional banking is creating a hybrid model in which both types of banks are navigating customer expectations and compliance challenges. Evolving partnerships are crucial for this growth, enabling banks to leverage ecosystems and drive forward their business strategies, even as only 5% of digital banks globally have achieved profitability.
Moreover, APAC is becoming a leader in digital payments and cross-border innovation. The growth of non-cash payment systems, evidenced by a projected year-on-year increase of 20.4% in 2024, highlights the importance of frameworks like PayNow, PromptPay, and UPI. Projects such as Thailand’s SCB-Lightnet and Singapore’s Project Ubin Phase 5 illustrate the transformative potential of blockchain technology in enhancing cross-border transactions. Enhanced regulatory frameworks across Southeast Asia are fostering further innovation, improving the affordability and efficiency of financial services.
Embedded finance is another focal point of evolution in Asia’s fintech landscape, seamlessly integrating financial services into non-financial platforms. This trend is observed with leading platforms such as GCash, Boost, and BigPay, which are broadening access to essential services like payments, lending, and banking. By moving beyond traditional super app models, fintechs are now honing in on specific industries, addressing niche needs, and improving user experience as the sector transitions from a phase of rapid innovation to one of consolidation.
Despite these advancements, the whitepaper also identifies persistent barriers to financial inclusion, including low digital literacy and underlying regulatory challenges. To address these hurdles, stakeholders indicate intentions for strategic market expansion, product innovation, and enhanced partnerships, with 20%, 19%, and 15% of respondents placing emphasis on these areas, respectively.
Turning to the AI analytics sector, BigBear.ai (BBAI) has experienced notable fluctuations since its entry to the market on December 8, 2021, through a SPAC merger. After an initial trading peak of $12.69 in April 2022, shares have since plummeted to around $3.40, with a low of $0.63 recorded in December 2022. CEO Mandy Long, who took the reins in October 2022, is spearheading efforts to revitalise the company, which focuses on providing advanced data-mining tools within the competitive AI analytics market.
While the company reported revenue of only $146 million in 2021 and struggles with significant competition and the bankruptcy of a major client, Virgin Orbit, recent acquisitions and new government contracts have stirred optimism about future revenue growth. Analysts predict an 8% revenue increase for 2024, alongside potential enhancements in adjusted EBITDA by 2025. However, ongoing worries surrounding leadership stability and considerable debt remain.
The evolution of companies like BigBear.ai underscores broader trends within the AI sector, influencing various aspects of the job market, investment patterns, and technological innovation across industries. As AI adoption accelerates, the need for workforce reskilling emerges, alongside heightened scrutiny concerning sustainable employment practices and the ecological footprint of AI technologies.
Looking ahead, industry trends indicate that innovation will need to align with public good, propelling the rise of ethical AI and sustainable practices as key determinants of market success. The situation surrounding BigBear.ai may reflect a broader shift whereby AI developers are increasingly held accountable to various stakeholders, shaping the landscape of the industry.
The convergence of advancements in fintech and AI highlights a rapidly changing ecosystem in Asia, with significant implications for businesses and consumers alike. For further insights on these topics, stakeholders can anticipate discussions and presentations at the Money20/20 Asia event and explore developments at BigBear.ai.
Source: Noah Wire Services