This Amalgamation of finance and technology in Malaysia and India dates back to 1990’s. Financial sector regulations and policies was just undergoing a rapid transformation due to the economic slowdown. Basic adoption of technology was majorly into using banking software solutions with government regulations and policy compliance. Large organizations, top banks, and financial institutions in Malaysia have expanded their presence over the past ten years by implementing new technology into their front- and back-office systems to satisfy client expectations. A variety of new players have entered the market, including startups from domestic and international markets, FinTech specialists, and groups of financial corporations working with technology businesses to compete alongside with the traditional financial services providers. In order to make payments, money exchange, lending, and wealth management more diverse, inclusive, competitive, and accessible, these FinTech firms are the pillars of the transformation.
Fintech solutions in active use for digital fundraising through Malaysian Capital markets
- Platforms for equity crowdfunding (or “ECF”) make it easier for companies to raise money from a group of individual investors in return for shares of the business.
- Peer-to-peer (“P2P”) finance allows people to lend money to businesses or SMEs online without the need of a bank or other financial intermediary.
- Platforms for property crowdfunding (“PCF”) enable homebuyers to raise money for the cost of a house through contributions from a number of investors.
Fintech solutions in active use for digital trading and advisory (Wealth Management)
- Through digital asset exchanges (or “DAX”), traders may trade digital assets (cryptocurrencies limited to Bitcoin, Etherum, Ripple, Litecoin, and Bitcoin Cash).
- Online systems like robo-advisors, digital investment management platforms (“DIM”), and digital brokers use machine learning, algorithms, and big data to improve portfolio risk assessment and investing accessibility.
Fintech solutions in active use for InsurTech
- Numerous startups and businesses that provide InsurTech solutions, such as end-to-end digital insurance, digital insurance brokers, and financial aggregation businesses, have expressed a lot of interest.
Precisely, digital payment, lending, e-wallet, insurtech and wealthtech contributes around 65% of the trending fintech solutions in Malaysia.
India as a financial market has evolved more cautiously when compared to Malaysia. Although, growth in technology adoption and digital transformation in financial industry has been phenomenal, but, limited to few sectors only. This is due to stringent regulations followed by Reserve Bank of India. However, major trends seen in India can be as mentioned below
Buy Now Pay Later (BNPL)
- BNPL has become a very well-liked cashless credit option for youthful, tech-savvy customers. Most individuals are unable to apply for credit cards without credit histories, and many people are still hesitant because of the high costs. Faster onboarding is made possible by fintech companies’ use of scalable technology and access to alternative data for creditworthiness evaluations of customers.
Digital or Neo Banks
- These are banks with no physical presence. Customers will gain a lot from the fully digital banks, including cheaper costs, quicker processing, competitive interest rates, and a great deal of convenience.
Digital Payments System
- The introduction of Aadhar-based KYC is also anticipated to help this industry grow, from $300 billion in 2021 to $1 trillion in 2026.
- Unified Payments Interface (UPI), Mobile wallets, Prepaid cards, Unstructured Supplementary Service Data(USSD)
Card Tokenization to prevent cyber fraud
- Tokenization is the process of changing your card information to a code, or “token,” that would be specific to you and the device. Because the real card information won’t be shown to merchants during processing, this makes your purchases safer.
Robotic Process Automation (RPA)
- RPA is used by the financial services sector to automate time-consuming back-office tasks including KYC, onboarding, account closure, credit card processing, etc. In order to maximize cost efficiency and boost staff agility, they will use the time and resources to improve customer services and other endeavours.
Some of the most cutting-edge fintech firms with headquarters in South and South-East Asia work with Quocent as a technology-driven digital transformation solution provider. Functional Consultants at Quocent are leaders in the financial sector’s technical innovation and have a wealth of knowledge and insight to provide solutions that meet expectations.