Malaysia Fintech Market Size (2024 - 2029)

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 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.