Fintech investment in the Asia-Pacific region more than quadrupled to $4.3bn in 2015, which accounts for 19% of global financial activity – according to Accenture’s Fintech and the Evolving Landscape report.
Payments is the most popular segment for fintech deals in the region, accounting for 38% of total investments.
With fintech on the rise, Accenture says that banks will have to remain relevant by adopting fintech much more aggressively. This will facilitate improvements in productivity, which could be passed on to customers through lower transaction fees.
Accenture also foresees that banks will become less directly relevant to customers but retain end-to-end platform service provision by creating secure and resilient services that can be integrated with other customer solutions.
Apart from that, the consulting firm believes that banks will lose their customer-facing relevance and their industry foothold as more nimble fintech companies create better platforms – but retain a core role as "highly regulated entities that integrate complex supply chains of platform providers".
"By forming partnerships with [fintech] firms, banks can access their deep pools of customer data and drive future products and services. If they surrender parts of their supply chain that they possess neither the appetite nor the capability to run efficiently, they could concentrate instead on driving higher returns from other parts of their business – which might be more valuable," said Accenture.