Asia Turns Its Attention Towards FinTech

Asia Turns Its Attention Towards FinTech

A report by Accenture has found that Asia continues to demonstrate its interest in financial technology. Global investment in financial technology ven

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A report by Accenture has found that Asia continues to demonstrate its interest in financial technology. Global investment in financial technology venture firms grew with 10% in 2016, fueled by huge investments in China and Japan. FinTech investments in China reached $10 billion, while those in Japan totaled to $154 million from 14 deals, said Accenture as quoted by Fortune.

“Many of China’s financial services companies are making investments in fintech companies and exploring cutting-edge solutions such as blockchain technology”, explained Albert Chan, Accenture’s managing director of financial services in China, in an interview with Fortune.

Recently, cryptocoinnews.com wrote about the $30 million agreement between bitcoin and blockchain-industry company BitFury and Hong-Kong-based industry investment company Credit China Fintech Holdings Ltd.

In statements quoted by cryptocoinnews.com, Credit China Fintech CEO Phang Yew Kiat said:

“Blockchain is a fast emerging technology allowing effective secured value transfer over the internet. Our collaboration with BitFury will further cement our leadership position in the use of Blockchain technologies across our Fintech platforms.”

Meanwhile, despite Japan`s progress in the field, the country has been described as a late mover, as Brink Asia (brinknews.com) reported.

“There is a whole ecosystem that has prevented the grassroots demand for a high-tech money transaction system in Japan. One is the deeply embedded, strong bank-branch culture. According to the World Bank, the number of commercial bank branches per 1,000 square kilometers in Japan was 103 in 2013, one of the highest in the world, and by far the most in Asia.”, wrote Motoya Kitamura, co-founder and partner of ROC Partners, a specialized private equity investment firm focused primarily on the Asia Pacific markets.

Still, the author of the report explained that there are signs that financial technology is gaining popularity in the country.

“There are definite signs that fintech is catching on in Japan: Sumitomo Mitsui Banking Corporation, Rakuten and SBI have all launched fintech funds, while the Bank of Tokyo-Mitsubishi UFJ and Mizuho have invested in fintech companies overseas. Personal financial management is also gathering momentum among smartphone users, and domestic companies such as Rakuten and Coiney are rushing to provide credit card reader services, similar to Square.”, wrote Kitamura.

It remains to be seen, if Asian countries will hold their strong positions in the sector.

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