In this two-part series, ViewTrade’s CRO of APAC & Middle East Laksh Gangwani shares his perspective on the top trends shaping FinTech and WealthTech in the APAC region. He examines these key developments from two focal perspectives — traditional financial institutions and modern fintechs — each of which presents unique opportunities and challenges when it comes to innovation.
In Part Two, Laksh examines three prevalent trends across APAC’s more modernized fintech players that are addressing a changing technology and financial landscape:
- Rationalization of business models
To say that fintech fundraising is a challenging landscape right now would be an understatement. The current “funding plunge” is a direct result of the period of hypergrowth many APAC fintechs were pushed into in 2020 and 2021, during which they faced pressure to expand rapidly. However, we now know that this growth was largely unsustainable. In 2024, we’re seeing firms address this with major pushes towards rational and leaner business models – fewer free trades and more focus on unit economics
- Focus on outcomes versus access
Over the past few years, we’ve also observed a shift in mindset in how fintechs are looking at investment and wealth management. While 2020 and 2021 were all about democratizing access to the markets, many firms are taking a step back and asking themselves what is really in their customers’ best interest. For example, many BNPL (Buy Now, Pay Later) fintechs democratized access to credit, but left more people indebted than ever before. Having observed these consequences play out in real time, firms are instead focusing on how to best build a product portfolio with optimal outcomes – one that can help customers plan for their futures.
- Fractionalizing even more markets
Lastly, along with trimmed-down business models that are more trading results-focused, APAC fintechs are offering increased fractionalization across exchanges and global markets. Think US and UK fractionalized trading, as well as fractionalized fixed income. Packaged in a sustainable business model, customers can diversify their portfolios and reach their financial goals faster.
Catch the full APAC Trends video above. Missed the first part of the APAC Trends series? Tune in here.
Interested in partnering with ViewTrade as we navigate the next frontier of fintech? Get in touch today to start a conversation with us.
