Market Trends of Malaysia Fintech Industry
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%.
