Asia could account for almost half of global fintech transactions by the end of the year as it continues to outpace other regions, according to recently published research.
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A report from Singapore-based fintech UnaFinancial found that fintech-related transactions reached $16.8tr in 2024, an increase of $2.1tr on the previous year.
This growth is expected to increase and the Asian fintech market is forecast to reach $18.9tr by the end of 2025, equivalent to 12.6% year-on-year growth.
With the global fintech market forecast to reach $40.1tr by year-end, Asia would account for 47.1% of the market’s transactions.
Much of the region’s growth has come from digital banking with an increase of $684bn accounting for a third (32.9%) of total growth.
But it is in digital investment and wealth management where growth has been highest. Between 2010 and 2024, these services have grown by an average annual rate of 92.1%.
According to UnaFinancial analysts, high smartphone adoption couple with limited accessibility to traditional bank accounts has fuelled the growth of digital banking in Asia.
In addition, the emergence of so-called super-apps in the region, which include digital wallets, BNPL services and ecommerce, has also driven fintech adoption.
A further contributing factor is the effort of governments in the region to develop digital payment platforms and promote a cashless economy – this has also led to a surge in cross-border digital payments.
Indeed, the report forecasts that the digital payments and transfers sector will be the primary source of growth for Asia’s fintech market, accounting for 45% of growth, exceeding the global average of 32%.