Malaysia Fintech Market Size (2024 - 2029)

The Malaysian fintech sector is experiencing significant growth, with its market size expanding rapidly due to increased digital banking adoption and government support for economic digitization. The COVID-19 pandemic initially hindered the market, but the subsequent shift towards digital solutions has solidified fintech's role in the financial landscape. This transformation is driven by high mobile phone usage, a burgeoning middle class, and the rise of digital payments and wallets, alongside other financial technologies. The shift from traditional banking to fintech is evident as internet banking and mobile transactions surge, reflecting a broader acceptance and integration of fintech into Malaysia's financial ecosystem.

Market Size of Malaysia Fintech Industry

Malaysia Fintech Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 46.63 Billion
Market Size (2029) USD 96.09 Billion
CAGR (2024 - 2029) 15.56 %
Market Concentration Low

Major Players

Malaysia Fintech Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Malaysia Fintech Market Analysis

The Malaysia Fintech Market size in terms of transaction value is expected to grow from USD 46.63 billion in 2024 to USD 96.09 billion by 2029, at a CAGR of 15.56% during the forecast period (2024-2029).

There was a negative impact of COVID-19 on the Malaysian Fintech Market in the first 2 quarters of FY 2020. The coronavirus pandemic impacted the proper functioning of various industries across regions. It affected the Malaysian Fintech Market and the technology industry very badly. It was primarily due to reduced transactions because of the imposed lockdown and, thus halt in businesses and money transfers or investments. The rise in the fintech industry began in the last 2 quarters of 2020 and resulted in positive growth. Malaysia's digital shift was ongoing for the past decade, but the pandemic accelerated digital banking adoption. In 2020, online and mobile banking penetration reached 112.5% and 61.8%, respectively, and USD 100.79 million mobile banking transactions were conducted - a 125% jump compared to the previous year.

Fintech now became a central part of Malaysia's financial sector, with considerable scope for expansion, according to a recent IMF analysis. With its growing middle class, high mobile phone usage, and strong government support for the digitization of the economy, Malaysian businesses and consumers appear ready to embrace fintech technology. Digital payments and wallets are leading the way in Malaysian fintech, followed shortly by insurtech, digital remittances, blockchain, crowdfunding and other forms of financial technology.

Internet banking in Malaysia quadrupled over the last decade, supported by 4G coverage and affordable data to promote mobile banking. The financial sector landscape also changed in the past few years, with physical commercial bank branches reducing and ATMs declining. All these statistics hint towards the fact that financial institutions started shifting towards adopting fintech, which is in sharp contrast to the initial scepticism it received from them.

Malaysia Fintech Industry Segmentation

Malaysia Fintech is one of the largest Fintech industries as businesses and people are more preferring digitized means of driving financial products. It is for their investment evaluation and payments through various FinTech platforms for financial products. The report covers a complete background analysis of the Malaysia Fintech Market. It includes an assessment of the economy, a market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles. The Malaysia Fintech Market is segmented by service proposition (money transfer and payment, savings and investment, digital lending & lending investment, online insurance & insurance marketplaces, and others). The report offers market sizes and forecasts for the Malaysia fintech market in value (USD) for all the above segments.

By Service Proposition
Money Transfer and Payments
Savings and Investments
Digital Lending & Lending Investments
Online Insurance & Insurance Marketplaces
Others
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Malaysia Fintech Market Size Summary

The fintech industry in Malaysia is experiencing significant growth, driven by a digital transformation that has been accelerated by the COVID-19 pandemic. Initially, the pandemic posed challenges, causing a downturn in transactions due to lockdowns. However, this led to a surge in digital banking adoption, with online and mobile banking penetration reaching impressive levels. The fintech sector has now become integral to Malaysia's financial landscape, supported by a burgeoning middle class, high mobile phone usage, and robust government backing for economic digitization. Digital payments and wallets are at the forefront, with other areas like insurtech, digital remittances, and blockchain also gaining traction. The shift towards fintech is evident in the reduction of physical bank branches and the rise in mobile banking services, indicating a move away from traditional banking methods.

The Malaysian fintech market is highly competitive and fragmented, positioning the country as a leading fintech hub in Asia. The ecosystem is rapidly evolving, with numerous companies and established players exploring collaborative opportunities. Key players such as Jirnexu, MyCash Online, and Capital Bay are driving innovation, while government initiatives like the Malaysia Co-Investment Fund and financial support for digitalization are enhancing the sector's growth. These efforts are facilitating the expansion of services such as digital payments, alternative finance, and wealth management. The market's expansion is further evidenced by the substantial growth in e-remittances, wealth tech, and alternative financing, highlighting a shift towards cost-effective, technology-driven financial solutions.

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Malaysia Fintech Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Buyers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitutes

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Insights of Technology Innovations in the Market

    6. 1.6 Insights on Government Regulations and Industry Policies

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Service Proposition

      1. 2.1.1 Money Transfer and Payments

      2. 2.1.2 Savings and Investments

      3. 2.1.3 Digital Lending & Lending Investments

      4. 2.1.4 Online Insurance & Insurance Marketplaces

      5. 2.1.5 Others

Malaysia Fintech Market Size FAQs

The Malaysia Fintech Market size is expected to reach USD 46.63 billion in 2024 and grow at a CAGR of 15.56% to reach USD 96.09 billion by 2029.

In 2024, the Malaysia Fintech Market size is expected to reach USD 46.63 billion.

Fintech Industry in Malaysia Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)