Abstract
This article assesses the opportunities and challenges for different categories of FinTechs in the SAARC and ASEAN regions. We consider the global financial inclusion data released by the World Bank and map the responses to gain insights into the opportunities and challenges for FinTechs in the respective regions. We develop a new index, termed the FinTech Opportunity Index (FOI), to conceptualise the opportunities and barriers based on individual savings, borrowings, purchasing behaviour, and payment preferences. We note that FinTech services have potential opportunities for expansion in the ASEAN regions but less so in the SAARC regions. The need for different types of FinTech services varies between regions. Services such as crowdfunding, neobanks, and InsurTech have potential in the ASEAN regions, especially with the positive attitude towards entrepreneurship and asset investments. In the SAARC regions, InsurTechs linked to health care has potential along with LendTechs and neobanks. We further note that males, and the young are more likely adopters of FinTechs in both regions. The analysis suggests the need for innovative promotions and education to motivate the more sceptical, especially women and the elderly population, to adopt FinTech services.
Highlights
FinTechs have expanded the financial services digital ecosystem across countries, during the COVID-19 crisis (Abdillah 2020; Rahman et al 2018)
We propose a new index, named the FinTech Opportunity Index (FOI), to conceptualise the opportunities and barriers across the South Asian Association of Regional Cooperation (SAARC) and Association of South East Asian Nations (ASEAN) regions, based on individuals’ savings, borrowing, purchasing behaviour, and payment preferences
We focus on a selection of questions from the 2017 Global Findex Database (GFD) questionnaire as listed in Table 1 to help understand and reflect on the opportunities for FinTech development in SAARC and ASEAN countries
Summary
FinTechs (financial technologies) have expanded the financial services digital ecosystem across countries, during the COVID-19 crisis (Abdillah 2020; Rahman et al 2018). We consider two regions with similar economic, political, and social structures—the SAARC (South Asian Association for Regional Cooperation) region and the ASEAN (Association of South East Asian Nations) region (Rahman et al 2018). The region hosts a culture that is strongly familial and collectivist in ethos and practices, and exists under an economic context that is highly reliant on banking systems, and where digital services are evolving (Dey et al 2019; Pandey et al 2019; Prasad and Aravindakshan 2021). The region hosts an economic context that encourages digitisation (Avirutha 2021) and has a focus on developing communities respecting equity, freedom, and a collective spirit (Ullah and Ming Yit Ho 2021)
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
