South-East Asia fintech is beginning to leverage the potential of AI and ML despite an observed plateau, and its use must be operation- and objective-specific to maximize the benefits.
Fintechs from Singapore have the tools in their stack in 2022, which the findings attribute to its especially high level of digitalisation and private fintech investment in AI.
Additionally, the country has seen a high overall economic development, being about 0.5 per cent of global GDP.
Singapore boasts an environment that cultivates the use of the most innovative technology.
Fintech development is still in its infancy in Laos, with only 49 companies out of 26,105 in the region, meaning that even a small penetration in the sector is significant.
The digital insurance sector holds the highest penetration rate of AI and ML technologies, with the number of companies using the technology growing at an average of 35.6 per cent per year.
The research recognizes the broader scale of adoption taking place across SEA’s fintech landscape, pinpointing average increases across cryptocurrency and blockchain at 28.7 per cent, digital investments at 21.4 per cent and e-commerce at 19.4 per cent.
AI and ML-based technology is not a one-size-fits-all solution that can guarantee success itself, adding that businesses must tailor them to their own operations and objectives to reach the greatest possible benefits.