After their recent success, the Asia-focused fintech startup Opn has made waves in the tech world. They have become the fifth unicorn in Japan after having raised $120 million, proving the immense potential of fintech in the Asian region.
This article provides an in-depth look into how Opn’s success highlights the growing potential of fintech in Asia.
Definition of Fintech
Fintech, or financial technology, is a term used to describe the emerging technology and innovation that aims to compete with traditional financial solutions. This industry has grown exponentially in recent years, spurred by customer demand and capital availability. The goal of fintech is to provide more efficient and cost-effective services for consumers and businesses, particularly when it comes to managing money.
In general, fintech includes services such as online banking and investing, mobile payments and peer-to-peer lending. It also includes new entrants into the market such as digital wallets, blockchain technology (which can facilitate secure transactions), electronic currency exchanges and automated investment advisors (known as “robo-advisors”). In addition, other industries leveraging technology to provide innovative solutions such as AI (artificial intelligence) and data analytics are also considered part of the fintech landscape.
Over the years opn has set up a presence in some markets like Southeast Asia. Opn’s success highlights the growing potential of fintech in Asia amidst rising underbanked population but greatly untapped potential amongst digital native customers which further suggests a huge opportunity in the fintech space across other parts of Asia .
Background of Opn
Opn is a digital banking platform that operates in North American and Asian markets, focusing on creating easy-to-use products for its customers. Founded in 2018, the company was designed to simplify and streamline the banking experience by automating processes, offering flexible payment options and providing financial support to small businesses.
The company is led by experienced financial technology (fintech) experts who have worked worldwide in China, Japan and Thailand. Their main focus is to provide customers with an engaging experience tailored to their needs. Additionally, they are committed to leveraging cutting-edge technology to provide innovative services that enhance customer trust and satisfaction.
Opn has achieved considerable success within a relatively short period, bringing attention to the growing potential for fintech companies in Asia. As more people become comfortable with banking online, there will be an increased demand for secure and easy-to-use platforms such as Opn’s banking services which offer convenience and peace of mind.
Asia-focused fintech startup Opn becomes Japan’s 5th unicorn after $120M funding
The success of Asia-focused fintech startup Opn highlights the growing potential of Fintech in Asia. In addition, Opn recently became Japan’s 5th unicorn after receiving $120M in funding. This news has further encouraged the growth of Fintech in the Asian region and has sparked an increase of investments.
This article will provide an overview of how Fintech has grown in Asia and how it stands compared to other global markets.
Overview of Fintech in Japan
Japan is well-positioned to be a leader in the fintech revolution of Asia. It’s the world’s third-largest economy and home to some of Asia’s largest companies. As such, Japan has established itself as a key player in developing innovative products and services using fintech.
Fintech companies operating in Japan include some world-recognized brands, such as Money Forward, Inc., SBI Holdings Co., Ltd., GMO Payments Network, Inc. and Mizuho Financial Group, Inc. In addition, many local start-ups have found success in the Japanese market. Recently, Opn was named one of the top five fin-tech firms in Japan by JCB (the Japanese bankcard company) for its accomplishments with mobile payments services.
Fintech startups face many challenges when entering the Japanese market due to its conservative regulations and cultural disposition toward foreign products/services. Nevertheless, while fintech regulations are becoming more stringent globally due to increased security concerns among governments around digital payments regulations and technologies, this is providing an opportunity for quick adoption of digital solutions such as blockchain technology due to its focus on secure information transfer offering higher levels of integrity than traditional technologies provide across borders seamlessly. This will allow greater flexibility for businesses engaged in cross border activities regardless of where they are located physically or even digitally – thus eliminating any geographical constraints that may have arisen previously.
The growth potential for fintech startups is immense within Asia’s third biggest economy – Japan – given its increasing demand from financial services companies seeking expansion into global markets outside their domestic borders that require rapid payment processes as well secure data transfers over different internet protocols safely secured through collaboration between multiple stakeholders such blockchain powered open source networks inside these countries too thus making secure online transactions more secure than most centralized services even today with greater accountability from various participants over all operations thereby eliminating scope for any malicious activities leading to corruption or robbery thus heralding a newer world order with greater transparency ensuring better oversight helping reduce incidents of financial crimes and increasing economic wellbeing for all parties involved directly or indirectly with respective governments too boosting citizen confidence enabling them all trust these new age digital networks economically & legally efficiently driving true value propositions through faster real time settlements & providing newer faster digital pathways never before imaginable hitherto promoting real time asset transfers over varied existing frameworks like through SMS/OBU (On Board Unit) based payment systems as well connecting urban & rural geographies seemingly bridging time & space altogether in an increasingly competitively connected global village seamlessly – therein revolutionizing global banking industry & saving billions everyday worldwide adding exponential value into coming future generations’ lifestyles globaly accelerating social & economic progress significantly across varied those who facilitate it letting people everywhere come closer connecting across boundaries spreading love never seen before!
Overview of Fintech in South Korea
Over the last decade, the fintech sector has grown rapidly in South Korea, fueled by innovative technology startups, investment from venture capital firms, and government encouragement. According to the Bank of Korea, fintech-related investments have grown from USD 2 billion in 2019 to around USD 10 billion in 2020.
As a result of this growth, the number of fintech and digital financial service providers operating in South Korea has increased significantly. The most successful players include KakaoPay, Naver Financials and Opn. These companies have become leading digital banking players by offering online payments and lending services with low transaction fees and 24/7 customer service.
South Korean consumers have embraced fintech services as they provide more convenient access to financial products and services, faster transaction times than traditional banking systems, and better security with greater data protection. This has led to a surge in usage rates for mobile payments since their launch in 2013.
Recently launched initiatives such as the Fintech Platform Services (FPS) further advance the development of fintech services within South Korea. FPS is designed to create digital payment hubs that reduce friction between banks, credit card companies, merchants and digital payment platforms. For example, FPS is providing consumer data infrastructure to smaller banks that don’t have access to such information or technology from large institutions; it also enables financial institutions detect fraudulent activities more quickly than through traditional methods such as manual checks by customers at counters or ATMs.
Ultimately, this expanding Fintech ecosystem presents business opportunities for investors, developers, vendors, and end users which will benefit from better pricing models, improved user experience via analytics & AI powered optimization, and enhanced fraud detection capabilities. It also promises wider coverage of financial products and better security with advanced encryption technologies used widely across internet enabled devices as more countries ramp up their focus on open banking driven innovation.
Overview of Fintech in India
India is one of the fastest-growing markets for fintech in Asia. This is because the government has leaned into digital payments and opened banking to startups, creating an influx of opportunities for traditional and challenger finance businesses. This trend has been accelerated by the 2020 pandemic, which led to a surge in non-cash transactions and digital banking.
The number of fintech players in India increased significantly in 2020, with over 400 fintech companies based there to date. Fintechs have helped hundreds of millions of Indians without access to traditional banking services gain access to financial services like loans and payments. These services cover loans, payments, lending-processing platforms, brokerage & investments, insurtech and wealth management offerings.
India has also become an innovation hub for global banks who must implement regulatory tech (RegTech) initiatives such as fraud detection or know your customer (KYC) identification tools. For example, some Indian fintech firms focus on integrated RegTech solutions that make it easier for banks to adhere to regulations at scale while allowing them to conduct operations more efficiently and securely.
Overall, mobile payment apps such as Paytm have fueled India’s rapid adoption rate of digital finance technology across non–banking financial services channels such as automated bill payment platforms. Lastly, many Indian citizens have proven they are willing to invest online – online savings accounts have grown tenfold over the past several years, making venture funding activity in this space an attractive source of capital for fintech companies across India.
Asia-focused fintech startup Opn recently became Japan’s 5th unicorn after a $120M Series C funding. This is a huge milestone for Opn as it highlights the growing potential of fintech in Asia. Furthermore, the success of Opn showcases the opportunities in the Asian fintech market and the potential of innovative solutions to disrupt the financial sector.
Let’s look into the details of Opn’s success in this article.
Overview of Opn’s Funding
Opn Financial is an Asian digital banking solutions provider that has experienced tremendous success in the last few years. Founded in 2014, the company offers an end-to-end mobile banking platform and services that enable banks, non-bank institutions and customers to conduct financial transactions quickly and securely over multiple channels.
Since its inception, Opn has secured several funding rounds, which have enabled the company to expand its services across Asia. The first major funding round came in 2017, when SBI Investment Co., Ltd.; Daiwa PI Partners Co., Ltd.; Mizuho Capital Co., Ltd.; and a group of individual investors invested US$4 million into the company. This was followed by a Series B funding round in 2018 led by SoftBank Ventures Korea and DCM Ventures with participation from existing investors SBI Investment Co., Ltd.; Daiwa PI Partners Co., Ltd.; Mizuho Capital Co., Ltd.; and individual investors. The round raised US$28 million, valuing Opn at US$100 million. The company’s most recent funding round took place in 2020 and saw strategic investment from Japan’s largest bank Mitsubishi UFJ Financial Group (MUFG) and SBT Venture Capital and Money Forward Inc. This strategic financing deal raised an additional US$23 million for Opn, giving it a new valuation of $230 million pre-money.
By leveraging its smart use of technology and capitalization on regional partnerships such as Taiwan’s Cathay Financial Holdings, Singapore’s DBS Bank and MUFG from Japan, Opn has been able to raise large amounts of money through various institutional investors to finance its rapid expansion into emerging markets across Asia Pacific region. The company’s growth further highlights the growing potential for fintech companies operating within this region given favourable customer demographic trends and increasing demand for digital payments solutions among businesses.
Impact of Opn’s Success on the Fintech Industry
Opn, a digital banking firm based in Singapore, has been making waves in the Fintech industry. Their success story highlights the potential of fintech in Asia and serves as an example for others looking to break into this booming field. Founded in 2018, Opn turned profitable within six months and has become one of Asia’s top 10 most valuable FinTech companies.
The two biggest factors behind Opn’s success are their focus on customer centricity and their use of technology to deliver an omnichannel banking experience. Modern-day technologies such as AI bots and machine learning help them create personalised experiences for their customers. In addition, using data insights, Opn can identify customer needs early on and address them quickly before they become problems.
Through its strategic partnerships with traditional financial players, Opn has been able to consolidate banking services while providing customers with a seamless digital journey from onboarding to daily operations such as payments and transfers. Inevitably, Opn’s success will inspire more banks to go for a digital transformation by leveraging new technologies like AI/ML algorithms and better ways of managing data creating beautiful customer experiences along the way. It will also signal FinTech startups that bringing innovative products to market can be successful if done properly—helping promote more innovation in the space.