2020 has seen rapid growth of digitization in financial services, with many banks across Asia reporting astounding increases in the number of their customers banking digitally. In Hong Kong, large banks witnessed their e-banking transactions rise by 50% and more in the months after lockdown measures took place, as the majority of clients began using digital banking apps. In rival financial hub Singapore, more than 80% of banking clients indicated that they planned to stick to banking online even after the pandemic subsides. In many Asian markets, it is the fintechs – rather than traditional banks – that are moving the needle when it comes to digital financing and financial inclusion. Many of these innovators, in India and China in particular, have generated such scale and influence that they have acquired government support and sponsorship of the new banking service models they advocate.
Global payments network company has partnered with many fintech firms across the region as part of its quest to support innovation and growth across the financial industry. Mastercard set a target to bring 500 million people into the financial system and have accomplished that goal. Now, Mastercard has expanded the pledge to bring a total of 1 billion people into the digital economy by 2025 – including 50 million small businesses and 25 million women entrepreneurs. To drive commercially viable financial inclusion, it’s essential to put consumers and their needs front and center. The needs of the underserved go far beyond just access to electronic accounts and payments. To make a real difference in their lives, we have to drive toward widespread usage. This means appropriately designed products, education and acceptance infrastructure. Without giving too much away, Mastercard will be highlighting solutions and insights around digital payments, cybersecurity, data analytics, government solutions, programs for SMEs and other initiatives as part of our commitment to building an inclusive digital economy with frictionless commerce and secure, accessible transactions.