The San Francisco/Silicon Valley is considered the hub for technology, but more specifically, the fintech industry. Many of the innovations and different companies that are growing are now spreading toward the Asian Market, as they look to start and grow their fintech industry. Some of the key trends include the amount of people who pay from their phone for purchases and transactions. In fact, China has 50x more people using online apps on their phone than the U.S. Both the banks and the regulators have adapted the block chain technology and digital currencies to improve lending and supervision behind larger transactions. It also slashes remittance fees for lower income families so that they can benefit from fintech as well. This helps shrink the tech gap between the high and low income families. The rise of “sandboxes” (places to test our new fintech in a controlled environment) and better access to credit for small businesses make Asia the most rapidly growth market for fintech. They will actually benefit more than the U.S since there are more people to bring into the market and a wider variety of people can use it as well. Alongside the U.S, Asia will be a huge powerhouse for fintech innovation and wouldn’t be surprised if it passes the U.S as the hub of all fintech.
URL: http://www.frbsf.org/our-district/about/sf-fed-blog/5-fintech-trends-shaping-finance-asia/