Fintech in Southeast Asia: The Way Forward

Recent research by the ISEAS-Yusof Ishak Institute examines the factors behind financial technology adoption in the Greater Jakarta region, providing transferrable learning points for governments and businesses alike.

Astrid Meilasari-Sugiana, Siwage Dharma Negara and Hui Yew-Foong, from the ISEAS-Yusof Ishak Institute published “Financial Technology Adoption in Greater Jakarta: Patterns, Constraints and Enablers” this month. This research is part of the Institute’s Trends in Southeast Asia series, which serves as in-depth analysis of contemporary geopolitical and social-economic forces in the region.

Drawing upon insights from an online survey assessing over 3,157 respondents’ experiences and perceptions of fintech, the authors outline patterns, constraints, and enablers behind fintech adoption in Greater Jakarta. Their findings are relevant for policymakers looking to accelerate fintech adoption. 

The survey found that socioeconomic status did not seem to influence fintech adoption when fintech infrastructure was sufficiently developed. Factors such as income, education, gender, age, and occupation were found to influence the kinds of fintech tools preferred. 

Notably, while users remained generally undeterred and enthusiastic about experimenting with fintech adoption, data leaks and fraud were nonetheless identified as the main perceived obstacles to adoption across all socioeconomic groups.

As such, it is clear that trust and confidence in Digital Financial Service (DFS) providers remains key to fully unlocking the potential of fintech.

This aligns with ongoing research on trust in DFS at the Tech For Good Institute, in which we see digital literacy as an important factor for the adoption of services across Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. Initial findings indicate that trust in DFS providers positively predicted e-wallet usage in half of the countries surveyed. When it came to the usage of other DFS products such as loans, insurance, and investment instruments, trust continued to positively predict usage in all countries surveyed except Thailand. 

The work of Meilasari-Sugiana et al demonstrates the importance of understanding the needs of target fintech users, not only those traditionally underserved by financial institutions but also those with limited or no digital infrastructure. By addressing user pain points and barriers to adoption, fintech will be better placed to fulfil its promise in improving financial inclusion across the region.

The Tech For Good Institute hopes to work closely with partners and stakeholders in helping raise the awareness of these barriers and pain points, and bring to light innovative solutions from the digital economy that will allow Southeast Asia to fully realise its potential as an equitable and prosperous region.

Photo by Markus Winkler on Unsplash

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Mouna Aouri

Programme Fellow

Mouna Aouri is an Institute Fellow at the Tech For Good Institute. As a social entrepreneur, impact investor, and engineer, her experience spans over two decades in the MENA region, South East Asia, and Japan. She is founder of Woomentum, a Singapore-based platform dedicated to supporting women entrepreneurs in APAC through skill development and access to growth capital through strategic collaborations with corporate entities, investors and government partners.

Dr Ming Tan

Senior Fellow & Founding Executive Director

Dr Ming Tan is Senior Fellow at the Tech for Good Institute; where she served as founding Executive Director of the non-profit focused on research and policy at the intersection of technology, society and the economy in Southeast Asia. She is concurrently a Senior Fellow at and the Centre for Governance and Sustainability at the National University of Singapore and Advisor to the Founder of the COMO Group, a Singaporean portfolio of lifestyle companies operating in 15 countries worldwide. Ming was previously Managing Director of IPOS International, part of the Intellectual Property Office of Singapore. Prior to joining the public sector, she was Head of Stewardship of the COMO Group.


Ming also serves on the boards of several private companies, Singapore’s National Volunteer and Philanthropy Centre, Singapore Network Information Centre (SGNIC), and on the Digital and Technology Advisory Panel for Esplanade–Theatres on the Bay, Singapore’s national performing arts centre. Her current portfolio spans philanthropy, social impact, sustainability and innovation.