One Asia: Building a Joint Fintech Force in a Fragmented World
Exploring FinTech Opportunities in Mongolia, Korea, Taiwan, and Cambodia
Unveiled at the Singapore FinTech Festival, this panel discussion provided a regional tour through Mongolia, Korea, Taiwan, and Cambodia, spotlighting the unique opportunities and challenges for FinTech companies in these evolving markets.
Key Highlights
1. Mongolia: A Youthful Market on the Rise
- Rapid Growth: Mongolia’s economy has been growing rapidly, recording a 6-7% annual GDP growth rate.
- Demographics: A young population with an average age of 27.5 years drives demand for digital products.
- Investment Potential: There is increasing international venture capital interest in Mongolian fintech companies. 4-5 Mongolian Fintech companies have also expanded internationally.
- Regulatory Progress: New laws covering data privacy and cybersecurity provide regulatory clarity, supporting fintech innovation.
2. Korea: A Digital Powerhouse
- High Adoption: Korea boasts 95% internet penetration and widespread 5G network use.
- Regulatory Sandbox: Over 200 fintech projects have been facilitated through programmes in its fintech sandbox, accelerating commercialization.
- Technological Edge: Korea’s fintech ecosystem is focused on "ABCDE" technologies—AI, Blockchain, Cloud, Data, and eKYC.
3. Taiwan: Leading in AI and Collaboration
- AI Leadership: Taiwanese companies produce 90% of global AI chips, providing significant opportunities for AI-driven fintech solutions.
- Collaborative Environment: Taiwan encourages partnerships with global fintech players and regulators and is open to discussions to adopt best practices for fintech regulation.
- Regulatory Openness: Regulators in Taiwan are open to discussions to adopt best practices for fintech regulation. Combating financial fraud and cyber risk are among its top priorities.
4. Cambodia: A Thriving Emerging Market
- Economic Growth: Cambodia is one of Southeast Asia’s fastest-growing emerging markets, with 7% GDP growth.
- Ease of Doing Business: Cambodia is very welcoming of foreign direct investment; 100% foreign ownership of companies is allowed. Starting a company requires a low investment threshold of just US$ 1000.
- FinTech Initiatives: Project Bakong led by the National Bank of Cambodia had enabled US$75 billion in digital transactions in 2023 and supports cross-border payments with neighbouring countries.
- Key Sectors: Digital payments, green finance, and agrifintech were highlighted as priority areas for Cambodia.
Conclusion
Each of these markets offers a unique mix of opportunities and challenges for FinTech companies. Success lies in localizing solutions, understanding cultural nuances, and collaborating with regulators to navigate the evolving landscapes.
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Speakers:
- Byambasuren Myagmartseren, Chief Executive Officer, Mongolian Fintech Association
- Hong Dongpyo, Global Alliance & Partnership Chair, Korea Fintech Industry Association
- Jaclyn Tsai, Chairperson & Honorary Chairwoman, Asia FinTech Alliance & Taiwan FinTech Association
- Weena Llona, Executive Director, Cambodian Association of Finance and Technology
- Reuben Lim, Chief Executive Officer, Singapore FinTech Association