Neobanking to grow 30.46% CAGR in APAC

Fintech value projected to reach $348.1b by 2031 as online banking platforms expand.

Neobanking is expected to be the fastest-growing segment in Asia-Pacific’s financial technology (fintech) market, expanding at a compound annual growth rate (CAGR) of 30.46% from 2026 to 2031, according to a Mordor Intelligence report.

This comes even as digital payments hold the largest share of the market at 64.93% in 2025.

The faster growth in neobanking reflects regulatory changes in countries such as Australia, Hong Kong and Singapore, where authorities have opened up new banking licences for digital-first providers. 

At the same time, digital payments are reaching maturity in several core markets.

In the Philippines, Tonik Bank reached 2 million customers within three years of launch, supported by offering annual savings rates of 6%, made possible by lower operating costs. 

In Australia, Judo Bank focuses on small and medium-sized enterprise lending through digital channels, targeting market share from traditional business banks. 

Digital lending is also growing steadily in India, where Reserve Bank of India guidelines have provided clearer rules for fintech-bank co-lending partnerships.

Digital investment and insurtech businesses are also expanding, supported by rising wealth amongst middle-class populations in China, India and Southeast Asia. 

In Singapore, StashAway offers robo-advisory services with low minimum investment thresholds and automated portfolio management. 

In Indonesia, Bibit provides similar services aimed at first-time investors. Insurtech firms are embedding insurance products into e-commerce and mobility platforms to reach customers who previously had limited access to coverage. 

Financial services are increasingly integrated into super-app ecosystems, allowing users to access investment and insurance products through existing platforms rather than separate applications.

The overall APAC fintech market is estimated to reach $167.7b in 2026, up from $144.87b in 2025. 

It is projected to grow to $348.1b by 2031, representing a 15.76% CAGR between 2026 and 2031.

Growth is driven by continued mobile-first consumer behaviour, government investment in real-time digital infrastructure and lighter licensing regimes for digital banks. 

Business users are expected to record the fastest growth, at a 25.47% compound annual rate through 2031, although retail users will still account for 70.88% of the market in 2025.

Cross-border payments are seeing strong uptake amongst business users. 

Export-oriented manufacturers in Vietnam, Thailand and Malaysia are adopting alternative payment solutions to reduce reliance on traditional correspondent banking, where international settlements can take three to five business days.