NEARLY a quarter of the APAC population still lacks access to traditional banking services, according to Statista. Translated, this is hundreds of millions of people who are either unbanked or underbanked, with no access to savings accounts, loans or formal credit. However, the regulatory environment in many Asian countries is rapidly changing as governments come to grips with the digital revolution. For example, India's Unified Payments Interface is making digital payments accessible to people of all socioeconomic backgrounds. The benefits support the growth of fintech companies, improve the efficiency of government services, and boost the growth of e-commerce and digital businesses. In Indonesia, Bank Rakyat Indonesia (BRI) has been leading the charge. Its BRILink network uses local banking agents, allowing people in remote areas to access banking services without visiting a physical branch. Millions have gained access to financial services. As a result, the thirst for modern payment infrastructure is exploding for existing banking customers. In the Asean region, for example, banks and fintechs increasingly see the need to improve their products to better meet customer needs; digital, hyper-personalized, instant and embedded payment experiences. However, the emerging policy and innovation initiatives across the region will also create the impetus for tech companies to finally and meaningfully drive significant change for the large swathes of the region's unbanked populations. It's now up to the industry to respond. To be clear, financial inclusion is more than just a noble goal — it is a strategic imperative that can significantly boost economic growth, prosperity and stability. For technology companies, this is a means to tap into substantial market potential. In our view, the role of tech companies is to provide the tools and infrastructure necessary for financial institutions to offer more accessible services — solutions not only technologically advanced but also culturally and economically tailored to specific markets. For example, by 2023, more than 480 million bank accounts were opened under India's Pradhan Mantri Jan Dhan Yojana (PMJDY), drastically reducing the number of unbanked individuals, and enabling direct benefit transfers from the government. Tech innovations like mobile banking, microloans, and digital payment solutions offer services that are both affordable and accessible. However, these solutions aren't going to magically emerge or reach those who need them. If fintechs are going to develop solutions that will help to narrow the bankable gap, they need to understand and meet the unique needs of Asian consumers and the commercial landscape more broadly. It also requires fintechs to be alive to the megatrends facing the region. First, Asia's diverse and large population demands solutions that can scale and be tailored to local needs. This dynamic is pushing fintechs to innovate quickly and efficiently. Additionally, the competitive landscape in Asia is intense. Startups and established financial institutions are competing for market share. Competition fuels initiative, as companies strive to differentiate themselves with superior products and services. Asia's relatively young population, like digital natives worldwide, is open to adopting new technologies, especially in digital payments. The demographic trend creates fertile ground for experimenting with new payment solutions. Asia's continued shift away from cash increases the need to deliver digital payment reliability as the growth trends deepen and accelerate. There's still work required to build confidence and ensure systems are robust enough to handle the rising volume of transactions. This is crucial in Asia, where the stakes of any system failure are high. Reliability isn't just about transaction success rates; it's about making sure every stakeholder — consumers, merchants and financial institutions — can have faith in the systems. Security is critical. As more people and businesses rely on electronic payments, the systems supporting these transactions must be secure against external threats and internal vulnerabilities. One breach could destroy carefully built reputations. This is where reliability goes beyond technology. It's about building trust with consumers new to electronic payments, giving them confidence to use new products and methods. Tech companies can work closely with regulators, financial institutions and stakeholders, invest in consumer education, and continue to develop technology to underpin these systems. The benefits will be felt by everyone. The future of fintech in Asia is bright, with strategic expansion, innovation and reliability at its core. As governments continue to prioritize financial inclusion, and as the shift away from cash accelerates, the role of tech companies will only become more crucial. By focusing on these key areas, we can ensure that Asia's financial revolution not only continues but also thrives. Brian Muse-McKenney is the chief revenue officer at Episode Six (E6), a global provider of enterprise-grade payment processing and digital ledger infrastructure for banks and companies looking to offer payments to their customers.
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