Australia’s growing financial technology (fintech) capabilities were highlighted during a major industry conference in Kuala Lumpur earlier this year.
Malaysia: The Rise of Fintech Innovation and Disruption – a two-day event organised by the Australian Trade and Investment Commission (Austrade) in collaboration with the NSW Government – outlined how Australia’s fintech capability aligns with Malaysia’s financial services sector ambitions.
Discussions centred on how fintech collaborations can be forged between the two nations.
Malaysia is one of the most tech savvy countries in South East Asia and has one of the largest e-commerce markets by value. Last year, it was the first Asia Pacific country to legislate a legal framework for equity crowdsourcing.
Australia is home to more than a hundred leading fintech companies, many serving global markets. Customers come from across the finance sector, including banking, insurance, market technologies, payments, and wealth management.
The growth of the fintech industry in Australia has been driven by the size and strength of the country’s financial services market, which include a mature and innovative banking sector, sophisticated and diverse investment vehicles, and an insurance industry supported by world-leading technology.
New business models
Susan Kahwati, Austrade’s Senior Trade Commissioner for Malaysia, said the growth of the fintech sector in Asia is being driven by new business models and the institution of financial market reforms.
“The high level of digital adoption, well-developed regulatory environment, and the growing number of new e-commerce players in Malaysia make it an attractive market for Australia’s fintech sector to consider potential collaborations,” Ms Kahwati said.
“Malaysia’s ambition to grow its fintech sector is also in recognition of the need to foster innovation within its strong capital markets.
“The country’s strong links to the US$2 trillion global Islamic finance market is yet another incentive.”
The Malaysia: The Rise of Fintech Innovation and Disruption conference included keynote briefings by Australian industry representatives, the Multimedia Development Corporation of Malaysia (MDEC), Next Bank Malaysia, and the National ICT Association of Malaysia (PIKOM).
Ms Kahwati said that Australian delegates also participated in a field trip to MDEC – a government agency supporting initiatives to help establish, grow and nurture fintech businesses within the country.
The Malaysian government’s commitment to fostering the growth and innovation of the country’s fintech sector includes an accelerator program delivered through the Malaysian Global Innovation and Creativity Centre (MaGIC).
MaGIC provides incentives to encourage international players to participate in these programs, to foster greater cross-border collaboration and help participants become ‘investor ready’.
For more information about the fintech opportunities in Malaysia contact Austrade on 13 28 78 or email: firstname.lastname@example.org.