Malaysia Fintech Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 46.63 Billion |
| Market Size (2029) | USD 96.09 Billion |
| CAGR (2024 - 2029) | 15.56 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Malaysia Fintech Market Analysis
The Malaysia Fintech Market size in terms of transaction value is expected to grow from USD 46.63 billion in 2024 to USD 96.09 billion by 2029, at a CAGR of 15.56% during the forecast period (2024-2029).
There was a negative impact of COVID-19 on the Malaysian Fintech Market in the first 2 quarters of FY 2020. The coronavirus pandemic impacted the proper functioning of various industries across regions. It affected the Malaysian Fintech Market and the technology industry very badly. It was primarily due to reduced transactions because of the imposed lockdown and, thus halt in businesses and money transfers or investments. The rise in the fintech industry began in the last 2 quarters of 2020 and resulted in positive growth. Malaysia's digital shift was ongoing for the past decade, but the pandemic accelerated digital banking adoption. In 2020, online and mobile banking penetration reached 112.5% and 61.8%, respectively, and USD 100.79 million mobile banking transactions were conducted - a 125% jump compared to the previous year.
Fintech now became a central part of Malaysia's financial sector, with considerable scope for expansion, according to a recent IMF analysis. With its growing middle class, high mobile phone usage, and strong government support for the digitization of the economy, Malaysian businesses and consumers appear ready to embrace fintech technology. Digital payments and wallets are leading the way in Malaysian fintech, followed shortly by insurtech, digital remittances, blockchain, crowdfunding and other forms of financial technology.
Internet banking in Malaysia quadrupled over the last decade, supported by 4G coverage and affordable data to promote mobile banking. The financial sector landscape also changed in the past few years, with physical commercial bank branches reducing and ATMs declining. All these statistics hint towards the fact that financial institutions started shifting towards adopting fintech, which is in sharp contrast to the initial scepticism it received from them.
Malaysia Fintech Market Trends
Regulatory Changes Ignited Fintech Adoption
Malaysia's government's Movement Control Order (MCO) functioned as a catalyst, assisting in the addition of 3 million new mobile banking service customers last year and driving e-wallet usage and adoption to new highs. Merchants jumped on board fast, with over 400,000 new firms registering for QR code payment processing, a 164% increase from 2022. Numerous regulatory improvements were implemented in 2022 to assist digital finance prosperity.
Digital e-Finance Adoption on the Rise
The successful adoption of digital finance was also observed across other fintech segments, including e-remittances, wealth tech, alternative financing, and cryptocurrency trading. In e-remittance, total transaction value grew by 106% last year. With USD 5.54 billion worth of remittances being sent out, e-remittance saw its market share grow from 14% to 25%, signaling that Malaysians are rapidly ditching traditional providers for a new age, lower-cost e-remittance provider according to fintech news.
Wealthtech also picked up with new digital investment management accounts opened last year. In alternative financing, capital raised on equity crowdfunding platforms jumped more than 457%, while peer-to-peer (P2P) lending value rose over 20%.
Malaysia Fintech Industry Overview
The Malaysia Fintech Market is highly competitive and fragmented as Malaysia is the largest market of the Fintech Industry throughout Asia. The Malaysia FinTech ecosystem is developing faster each year, with more companies and incumbents seeking new opportunities to collaborate, connect and co-create. It will cater to numerous clients and cover various services such as digital payments, alternative finance, wealth management, and blockchain. Malaysia groups such as MyCash Online, Jirnexu, and Mobi are focusing on innovating the FinTech industry and leading the Malaysia Fintech Market to new heights. Some major players are Jirnexu, MyCash Online, Capital Bay, PitchIN, MHub, etc.
Malaysia Fintech Market Leaders
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Jirnexu
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MyCash Online
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Capital Bay
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PitchIN
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MHub
*Disclaimer: Major Players sorted in no particular order
Malaysia Fintech Market News
- March 2023: An excess of USD 8.76 million would be given to the Malaysia Co-Investment Fund (MYCIF) to improve price discovery opportunities and further increase the liquidity of the peer-to-peer (P2P) and equity crowdfunding (ECF) markets. It would increase the total amount of accumulated funds under MYCIF that are available to MYR 300 million (65.34 USD million), according to the Securities Commission (SC). It proved crucial in securing funding for fintech firms as well as MSMEs.
- March 2023: The government set aside USD 0.26 billion to hasten MSMEs' attempts to go digital. It involves offering financial support for digitalization, such as grants for e-commerce platforms and online advertising campaigns. It would make it easier for Malaysian companies, including those in the fintech industry, to reach a larger clientele and broaden their customer base.
Malaysia Fintech Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
4.5 Insights of Technology Innovations in the Market
4.6 Insights on Government Regulations and Industry Policies
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Service Proposition
5.1.1 Money Transfer and Payments
5.1.2 Savings and Investments
5.1.3 Digital Lending & Lending Investments
5.1.4 Online Insurance & Insurance Marketplaces
5.1.5 Others
6. COMPETITIVE LANDSCAPE
6.1 Market Competition Overview
6.2 Company Profiles
6.2.1 Capital Bay
6.2.2 Jirnexu
6.2.3 Mobi
6.2.4 Moca
6.2.5 HelloGold
6.2.6 MoneyMatch
6.2.7 MyCash online
6.2.8 Prime keeper
6.2.9 Policy Street
6.2.10 pitchIN
6.2.11 Mhub*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Malaysia Fintech Industry Segmentation
Malaysia Fintech is one of the largest Fintech industries as businesses and people are more preferring digitized means of driving financial products. It is for their investment evaluation and payments through various FinTech platforms for financial products. The report covers a complete background analysis of the Malaysia Fintech Market. It includes an assessment of the economy, a market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles. The Malaysia Fintech Market is segmented by service proposition (money transfer and payment, savings and investment, digital lending & lending investment, online insurance & insurance marketplaces, and others). The report offers market sizes and forecasts for the Malaysia fintech market in value (USD) for all the above segments.
| By Service Proposition | |
| Money Transfer and Payments | |
| Savings and Investments | |
| Digital Lending & Lending Investments | |
| Online Insurance & Insurance Marketplaces | |
| Others |
Malaysia Fintech Market Research FAQs
How big is the Malaysia Fintech Market?
The Malaysia Fintech Market size is expected to reach USD 46.63 billion in 2024 and grow at a CAGR of 15.56% to reach USD 96.09 billion by 2029.
What is the current Malaysia Fintech Market size?
In 2024, the Malaysia Fintech Market size is expected to reach USD 46.63 billion.
Who are the key players in Malaysia Fintech Market?
Jirnexu, MyCash Online, Capital Bay, PitchIN and MHub are the major companies operating in the Malaysia Fintech Market.
What years does this Malaysia Fintech Market cover, and what was the market size in 2023?
In 2023, the Malaysia Fintech Market size was estimated at USD 40.35 billion. The report covers the Malaysia Fintech Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Malaysia Fintech Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the emerging trends in the Malaysian Fintech Market?
The emerging trends in the Malaysian Fintech Market are a) Rise of open banking and API integration b) Adoption of digital identity and KYC solutions c) Utilization of AI and ML algorithms, and the growing interest in sustainable and impact investing
Financial Technology in Malaysia Industry Report
The Malaysia fintech market is experiencing rapid growth and transformation, driven by supportive government initiatives, increasing digital adoption, and a tech-savvy population. The industry trends indicate that digital payments and mobile banking are among the fastest-growing segments, fueled by rising internet penetration and smartphone usage. The market size and forecasts are provided in terms of value for all the segments, which include money transfer and payment, savings and investment, digital lending and lending investment, online insurance and insurance marketplaces, and others.
The industry report highlights that the adoption of blockchain technology and cryptocurrencies is also gaining traction, particularly in remittances and cross-border transactions. The market overview shows the fintech industry in Malaysia is characterized by intense competition, technological advancements, and strategic partnerships between traditional financial institutions and fintech companies. The market segmentation reveals significant opportunities, particularly in Islamic fintech, open banking, and wealth management.
According to the industry analysis, the future outlook for the Malaysia fintech market is promising, with continued growth expected across various sectors, driven by innovation, collaboration, and evolving consumer needs. The industry statistics and market data support the positive market growth and market value projections. The market forecast and market predictions suggest that the sector will continue to expand, driven by the increasing demand for digital financial services.
The industry research and industry reports provide detailed insights into the market leaders and market trends shaping the future of fintech in Malaysia. The industry sales and industry size are expected to grow as more consumers and businesses adopt fintech solutions. The market review and market outlook indicate that the sector will continue to be dynamic and innovative, with new players entering the market and existing ones expanding their offerings.
For a comprehensive understanding of the industry, the report pdf and report example provide valuable information on the market structure, target market, and growth rate. Research companies have also highlighted the importance of regulatory technology and its impact on the industry. The industry information and industry profile offer a detailed analysis of the market's current state and future potential.
