Top 3 reasons why Fintech is rising in Asia
Fintech or financial technology is a new trend in the financial sector that is set to blow away the banking industry and you are a part of it. Yes, if you are making online payments and indulging in virtual currencies you are helping fintech grow. From what was just a startup is now a multimillion-dollar Philemon. From the United States to Asia it has quickly progressed into various regions across the globe. We will be looking into the 3 main reason for Fintech progression in Asia. Here is how fintech is rising in Asia
Supports Start-ups
Fintech has massively supported start-ups with its financial techniques. Instead of depending on banks, start-up have financial technologies to develop their businesses. From automatic payment methods, managing in and outflow of cash to a cloud-based system for all financial depositories Fintech provides a better more advanced way of money management to start-ups. Hence, a lot of companies have quickly adapted to this new wave of technology. With the introduction of Fintech Asia and especially in Asia, there are more than a thousand Fintech companies running strong helping these start-ups with all their financial needs.
Rise of Internet
Application of the internet has seen a sudden steep in Asia. Contributors being widespread internet connection and cheap smartphone availability. From small grocery shops to super markets all have accept the trend of virtual currency. Individuals knowing that they don’t have to visit the banks when they can manage their finances with the click of a button, they have entrusted their finances with Fintech. Fintech has successfully penetrated Asia’s local market with the support of rise in internet connectivity in recent years.
Young Population
The key to success for Fintech in Asia has a lot to do with its young population. Millennials are widespread amongst Hong- Kong, Singapore, Tokyo and other regions. This group of population is tech-savvy, digitally advanced and very accepting of the digital norms. They have been quick in adapting to fintech’s functionalities. Be it young entrepreneurs or working class individuals everyone has found a better more easy way to deal with their finances. Hence, Financial Technology has easily found its way into various regions of Asia.
To sum it up
Fintech is projected to become a billion dollar industry by the end of 2020 in Asia. Financial Technology has also merged with various banking institutes and financial organization in India. Applying for credit cards , personal loans, making your credit card bill payments and cashless transaction easier than before.
Especially with the low margins of credit card users in India due to trust factors Fintech plans on providing a better substitute. Although a part Fintech i.e Cryptocurrency is still a controversy around the globe. It’s another service including investment techniques, finance management, and virtual payments are widely appreciated and used.
Yes, the question of security is still up. Being an online phenomenon major questions are about security and spamming. However, Fintech organizations are making their security stronger by the day.
Source: Retail News
https://www.retailnews.asia/top-3-reasons-why-fintech-is-rising-in-asia/
