A Practical Guide to Fintech in Malaysia & Asia

What "Fintech" Means

Fintech — financial technology — refers to software and digital services that deliver or improve financial activities: moving money, lending, saving, investing, insuring and managing risk. It spans everything from a mobile wallet on a phone to the infrastructure that settles payments between banks.

The Main Segments

Payments and e-money Digital wallets and account-to-account transfers. In Malaysia, e-money issuers and payment services are regulated by Bank Negara Malaysia (BNM).

Lending and financing Includes peer-to-peer (P2P) financing for businesses, buy-now-pay-later, and digital lending. P2P financing in Malaysia is regulated by the Securities Commission Malaysia (SC).

Wealth and investing Robo-advisers and digital investment platforms — in Malaysia, "Digital Investment Managers" are licensed by the SC.

Insurtech, regtech and infrastructure Digital insurance distribution, compliance technology, and the open-banking / data-sharing rails that connect providers.

Who Regulates What in Malaysia

Malaysia uses a "twin" structure:

• Bank Negara Malaysia (BNM) oversees banks, payment systems, e-money and the digital banks.
• Securities Commission Malaysia (SC) oversees capital-market activity, including P2P financing, equity crowdfunding (ECF) and digital investment management.

A notable milestone: in 2016 Malaysia became the first ASEAN country to introduce a regulatory framework for P2P financing, operated under the SC's Guidelines on Recognised Markets.

Digital Banks

In 2022, BNM awarded five digital bank licences under the Financial Services Act and the Islamic Financial Services Act. These branchless banks began rolling out retail products from 2024, with a stated focus on serving the underserved and improving financial inclusion.

Regional Connectivity

Across ASEAN, central banks have been linking national real-time payment and QR systems — for example connecting Malaysia's DuitNow with counterparts such as Singapore's PayNow, Thailand's PromptPay and Indonesia's QRIS — under a broader Regional Payment Connectivity effort. This lowers friction for cross-border commerce and remittances.

This guide is educational and general in nature. Always verify current rules and licensed providers via the official BNM and SC websites.