analyze the dynamics of the development of FinTech-firms. It should be noted that
trends in the development of financial innovation differ in regions and types of
services. Estimation of the investment activity of FinTech-companies are presented at
figure 1 and figure 2.
Figure 1. Dynamics of investment in financial technology in the Asia-Pacific
region for the period 2010-2015 [37]
As shown in Fig. 1, there is a significant increase in investment in the Asia-Pacific
financial sector, partly due to significant investments from venture capitalists and
FinTech, whose investment in technology is steadily increasing.
Such dynamics of investment in the FinTech sector is due to the high profitability
of this trend and much less requirements for regulation of activity compared with
traditional financial and credit institutions. Most of Asian FinTech start-ups lack
financial regulation (for example: peer-to-peer (P2P) lending remains relatively
unregulated). Despite the fact that only 800 such platforms operate in China with a total
amount of over US$ 16-billion, the country's leadership is still delaying the
introduction of the necessary regulatory regulation [38].
Note that FinTech startups have been operating in the Asia-Pacific since 2006,
which has led to the formation of three main types of market participants: non-financial
operators, online payment providers, peer-to-peer (P2P) lenders.
Non-financial operators create threats to competitive positions of banks in the
payment market. Moreover, the threat is much higher for low-income countries with
bank accounts. About 2 billion people around the world do not have a bank account,
38% of them live in only three Asian countries, such as India, Indonesia and China
[38]. Introduction of mobile banking services by non-banking institutions in these
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