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Enhancing Financial Inclusion in ASEAN: Identifying the Best Growth Markets for Fintech

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  • Mark Kam Loon Loo

    (Mihalcheon School of Management, Concordia University of Edmonton, Edmonton, AB T5B 4E4, Canada)

Abstract

While most of the advanced economies are facing saturated markets, the Association of Southeast Asian Nations (ASEAN) has been touted a stable and attractive investment region averaging 5.4% growth since 1980. In 2013, ASEAN overtook China as the top foreign direct investment destination. Boasting the world’s fifth largest economy with over 650 million people and 400 million reaching middle class, ASEAN has commendably transitioned from a subsistence economy to product and service industries. Despite the success, many live in marginalized areas without access to banking facilities. Advancing internet capability and availability present investors an opportunity to offer financial technology, or Fintech, to meet the need for financial services in this digital era. The aim of this research is to identify the countries with the highest need for financial inclusion and, hence, the best potential for Fintech growth. The results may help governments formulate policy that improves investment competitiveness. The methodology includes identifying relevant criteria and allocating weight to each criterion to evaluate the best international markets. The findings show Vietnam, Laos, and Cambodia as the countries with the highest potential. The associated risks and opportunities are discussed, followed by managerial implications, limitations, and recommendations for future research.

Suggested Citation

  • Mark Kam Loon Loo, 2019. "Enhancing Financial Inclusion in ASEAN: Identifying the Best Growth Markets for Fintech," JRFM, MDPI, vol. 12(4), pages 1-21, December.
    • Handle: RePEc:gam:jjrfmx:v:12:y:2019:i:4:p:181-:d:294027
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    References listed on IDEAS

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    Cited by:

    1. Aurelien K. Yeyouomo & Simplice A. Asongu, 2022. "Fintechs and the financial inclusion gender gap in Sub-Saharan African countries," Working Papers of The Association for Promoting Women in Research and Development in Africa (ASPROWORDA). 22/018, The Association for Promoting Women in Research and Development in Africa (ASPROWORDA).
    2. Chia-Lin Chang & Duc Hong Vo, 2020. "Contemporary Issues in Business and Economics in Vietnam and Other Asian Emerging Markets," JRFM, MDPI, vol. 13(6), pages 1-4, May.
    3. Khaled Mahmud & Md. Mahbubul Alam Joarder & Kazi Muheymin-Us-Sakib, 2022. "Adoption Factors of FinTech: Evidence from an Emerging Economy Country-Wide Representative Sample," IJFS, MDPI, vol. 11(1), pages 1-27, December.

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