Risks and prospects of government regulation in Asian fintech market under scenario analysis

Introduction. FinTech market in Asia in the past 5 years has shown a considerable rise in its share in the FinTech global investment. Aims. To identify and systematize the risks and areas of government regulation as a part of FinTech market development. Methods. Methods of statistic data analyses, analyses of materials available through international organizations, as well as scenario analyses. Results. Based on scenario analysis three basic scenarios have been identified: partnerships between FinTech companies and banks in order to improve banking services; fragmentation of financial services market as a result of the BigTech companies entry; rising competition from the new generation banks and displacement of traditional banks from direct interaction with clients. Regulation policy in FinTech sector in Asian countries is fully present in the following areas: protection of consumer and investor rights, providing accessibility of financial services, encouraging innovation and competition. Conclusion. It has been concluded that given the further growth in FinTech services massive expansion there exists a growth potential for financial stability risks. In this connection it is recommended for the supervisory bodies to use a more thorough monitoring of such areas as financial sector profitability, crediting standards and cyber-security.