Crisis as a Catalyst for Change: Southeast Asia Is Digitizing Finances

When the COVID-19 pandemic struck the world, history continued to repeat itself when common public health approaches were progressively put into action from one state to another. Such behaviours have disrupted the more normal everyday habits, resulting in minor but important improvements in how we work, function, pay and play from guidelines on the psychological divide to lockouts. Through QR payment code to electronic wallets, also in Southeast Asian economies, where money has traditionally reigned as sovereign, the call to non-cash payment forms has gradually been institutionalized. The move is positive provided that more than 70 per cent of women still do not have exposure in the country to fundamental financial services. Such infrastructures are expected to bring about structural improvements with a view to ensuring inclusive economic growth. In tandem with digital technology like blockchain, a new line can be converted to existing financial systems in order to best support those who are in need.

From Crisis to a Cashless World

Conflicts have the potential to cause big improvements. This tale is much more obscure, reminiscent of the explosive development that has arisen since the 2003 SARS disease in the Chinese electronic payments and e-commerce sector. Today China, of course, is home to a thriving landscape controlled by technology giants like Alipay and WeChat Pay. Coronavirus clearly accelerated penetration on emerging markets such as Singapore, which have a complex network of online payment options.

The Singapore reserve bank promoted the use of e-payment infrastructure and services including the island-wide QR code scheme for mobile e-wallets to allow besides lack of familiarity and contactless payments as part of the federal government’s public health policy. The volume of e-payments transactions alone rose in the city-state in the first quarter of 2020. A multigenerational transition has emerged with bank employees over the age of 54, showing growing confidence in internet banking services during the pandemic. Around the same time, the coronavirus has been used as a significant agent for rapid reform in many developed economies. The influence of financial technology was particularly pronounced here, and can not be lagging behind their developed counterparts.

Developing economies will gain more by operating on a “go digital or die” slogan to pull a technology-enabled paradigm of expanded fiscal and social flexibility regarding the financial pressure created by the international health crisis.

Going for the top to down

Regardless of whether developing markets have taken a radical stand or developing economies free of the bonds of established players, openness and competition define Southeast Asia’s financial services industry. We will certainly see more exhilarating instances of institutional usage in the presence of blockchain technologies as the country moves on its transparent financial course.