target audience: TECH SUPPLIER Publication date: Jul 2023 - Document type: Market Perspective - Doc Document number: # AP50379523
Asset Management Investments as an Indicator of Adoption of AI and Technology in Asia's Financial Services
This IDC study reviewed US$2.5 billion of recent venture capital investments across Asian fintech startups. We have been able to identify several use cases of potential technology investments for both the technology suppliers and buyers. These use cases have a few aspects in common. Less than 10% are totally new business models, whereas 90% are improvements on the existing model; they are largely AI-driven and are nicely distributed between proof of concept (75%) and scale-ups (25%).
"As a banker and an insurer, I often wondered why financial services hesitated to adopt new technologies. I often thought it was due to the close regulatory monitoring. Reviewing these use cases, I think banks may be missing a trick. These are intuitively simple; and can lead to drastic improvements," said Ashish Kakar, research director, IDC Financial Insights.