Banks to boost financial technology projects in Asia-Pacific as China drives investment
Spending in the region up 517 per cent in the first quarter to US$2.7 billion, according to estimates
Major banks are poised to escalate their participation in financial technology (fintech) projects across Asia-Pacific as mainland China continues to drive these investments in the region, according to industry experts.
Global management consulting company Accenture has estimated that fintech investments in Asia-Pacific grew 517 per cent in the first quarter to US$2.7 billion, up from US$445 million in the same period last year, on the back of initiatives in the world’s second-largest economy.
Total Asia-Pacific investments in fintech last year more than quadrupled to reach a record US$4.3 billion, the firm said. The region is now the world’s second-biggest geographic market for fintech investments after North America.
“We’re having fintech discussions at financial institutions across Asia as executives want to know about the latest, cutting-edge solutions to invest in, develop or buy that can streamline services for their customers,” said Jon Allaway, a senior managing director at Accenture.
This year, our intention is to explore more opportunities to use fintech products in our strategic locations, like the Pearl River Delta, to provide simpler, better and faster financial services to our customers
That sharpened interest has led to an increase in the number of financial institutions backing Accenture’s FinTech Innovation Lab Asia-Pacific this year to 20, from 12 last year.
Now on its third year in Hong Kong, the lab is an annual mentorship and “accelerator” programme for entrepreneurs and start-ups developing advanced technologies for the banking industry. Applications for this 12-week programme start today and close at the end of next month.