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The Malaysian government is banking on fintech to propel the country to a new economic level, and industry experts agree that there is significant potential there.
FREMONT, CA: A Southeast Asian country is on track to become one of the top fintech countries, with excellent adoption rates and a desire to fight for improvement. Malaysia, famous for its beaches and jungles, was regarded as inactive in the IT sector until lately. Malaysia has managed to build a robust fintech sector, which is mostly due to a lack of effective financial services supplied by banks and the government, a sentiment shared by many Asian and African countries currently dominating the fintech globe.
The Malaysian government is banking on fintech to propel the country to a new economic level, and industry experts agree that there is significant potential there.
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This trend, however, will not end with the provision of eWallets. The country intends to invest heavily in crowdfunding, insurance, and other practices popular in countries with the highest fintech adoption and innovation rates.
This trend corresponds to the increased availability of mobile phones and the growing popularity of mobile banks. Phone usage recently surpassed 90% in 2018, and the trend has only accelerated since then. While mobile phone access is still not universal, coverage is, as well as everyone who has a mobile phone has access to 4G.
Surprisingly, Malaysia ranked very high on the Network Readiness Index, outranking Italy and China and topping every country in its neighboring region.
This has already had an impact on the banking industry, with many branches of the country's most popular banks closing because of a lack of demand. The number of automated teller machines is also gradually declining, providing more opportunities for the fintech industry to continue its countrywide takeover. While local banks continue to have a monopoly on services such as loans and capital raising, fintech increasingly dominates digital payments, insurance, and crowdfunding.
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