Asia’s fintech landscape is transforming rapidly as financial services across the region integrate technology to meet growing demand. Yet, alongside this progress comes heightened concerns over financial crime risks. For many entrepreneurs, startup founders, and business owners like myself, understanding this intersection is vital. As someone who has built and scaled ventures in Europe and collaborated across global markets, here’s my take on how this challenge can be addressed effectively.
Let’s start with the foundational issue. Financial crime in Asia has emerged as a deep-seated problem, fueled by digital innovation and patchy regulatory frameworks. Countries such as India, China, and Thailand see frequent attempts at fraud, including identity theft and money laundering. According to a report featured on SymphonyAI and Regulation Asia, Southeast Asia saw a shocking 64% increase in money laundering events over a five-year period. Scamming techniques, like “pig butchering,” are becoming more elaborate, leaving businesses and consumers vulnerable.
Now comes the critical question: how do fintech providers rise above these challenges while maintaining trust and growing their businesses? Here's a layered view based on global insights and regional specifics.
Key Trends to Watch: Fintech’s Response to Crime
To tackle financial crime, fintech firms are embracing a mix of technology and governance. These are some trends to consider:
1. Artificial Intelligence:
AI is not being applied as widely in Asia as in Western regions, which is shocking, given the potential. Leading examples, such as HSBC’s use of predictive AI for financial crime detection, show what’s possible. Their Dynamic Risk Assessment system, developed alongside Google, has managed to identify 2–4 times more crime while cutting false positives significantly. Still, only 15% of Asian financial institutions have advanced AI integration. It’s time founders in the region tapped into this advantage.
2. Blockchain Technologies:
Distributed ledger technology isn’t just about speed, it offers a kind of risk auditability that traditional systems can’t match. This transparency is the reason banks like DBS in Singapore have been prioritizing blockchain implementation in safeguarding transactions.
3. Data Analytics and APIs:
Fintech cannot function in isolation. Open APIs improve interoperability and customer experience but can be a double-edged sword, exposing vulnerabilities to attackers. Successful firms invest in robust monitoring systems and secure gateways for interaction with third-party service providers.
How to Build a Financially Secure Fintech Stack: A Guide for Entrepreneurs
As a founder, particularly in the tech-powered finance world, you have to build systems that align tightly with your overall mission while responding to regional nuances. Here’s a guide to get started:
1. Analyze Your Market’s Specific Risks
Before setting up systems, understand the type of crimes prevalent within your target market. Southeast Asian ecosystems often deal with syndicate-driven financial crimes such as identity fraud or ransomware attacks.
2. Integrate AI for Transaction and Fraud Intelligence
Start simple. Deploy credit scoring algorithms or tools for anomaly detection in payment systems. Banishing human error is significant, but let AI alert you to risks, not blindly make decisions.
3. Adopt Decentralized Solutions
Explore early blockchain solutions for transparency in your record-keeping. But avoid relying entirely on decentralized identity mechanisms until local compliance frameworks are more uniform.
4. Train Your Team Regularly
Technology by itself cannot deter fraud without proper human oversight. Frequent cybersecurity training is critical for recognizing risks such as phishing attacks targeting customer data.
5. Set Up Secure API Frameworks
Open APIs are necessary for fintech scalability but always invest in secure interaction protocols to minimize third-party risks.
Mistakes That Could Cost You
Even the best fintech vision can fail if basic security protocols are overlooked. Watch out for these common errors:
-
Passive Security Measures
Some startups wait for breaches before reacting, a mistake fatal in markets with high criminal activity. -
Ignoring Regulatory Variability
Asia’s diverse regulations mean one-size-fits-all approaches don’t work. If you’re operating across borders, tailor your actions country by country. -
Over-Building Tech Without Clear Use Cases
Sophisticated tech stacks without real need often waste resources while ignoring foundational problems, like fraud detection in legacy systems. -
Underestimating Customer Awareness
Your platform might have cutting-edge tools, but if users don’t understand risks they're exposed to, trust diminishes.
Deep Insights for Growth
How you design your fintech stack can differentiate your business not only in Asia but globally. It’s all about balancing innovation with resiliency. As an entrepreneur, focus on these insights:
- Collaboration with regulatory bodies can grant you access to key markets while shaping policies conducive to your long-term goals.
- Hyperlocal solutions work better than sweeping changes when addressing financial crime risk.
- AI adoption doesn't have to be massive and expensive, start with modular tools that fit your current scale.
Asia’s fintech future is promising despite its challenges. Having expanded my ventures internationally, I’ve seen firsthand that fintech businesses capable of navigating risks, like financial crime without losing sight of customer-centric goals, thrive. With fraud exposure increasing rapidly, there’s no time for hesitation, building security-focused fintech stacks isn’t a luxury; it’s a necessity. Let’s lead the way.
FAQ
1. What are the major financial crime risks Asia faces in fintech?
Asia experiences crimes like identity theft and money laundering, particularly in countries such as India, China, and Thailand. Fraudulent schemes like “pig butchering” have also become increasingly prevalent. Understand the Risks of Fintech
2. How is AI helping in mitigating financial crime?
AI, like predictive analytics and anomaly detection systems, is used by banks such as HSBC to identify fraud. Their systems, developed with Google, have identified 2–4 times more financial crime cases while reducing false positives by 60%. Explore Predictive Analytics in Banking
3. Why is blockchain significant for preventing financial crimes?
Blockchain's transparency and decentralized nature create risk auditability that traditional systems lack. Fintech firms in Asia, such as DBS in Singapore, leverage blockchain to safeguard transactions. Learn more about Blockchain in Financial Market Infrastructure
4. Why is AI adoption lagging in Asia’s financial sector?
Only 15% of Asian financial institutions have advanced AI integration due to barriers like legacy systems, data quality, and unclear regulations, leaving organizations vulnerable to financial crime. AI Adoption in Asian Financial Institutions
5. How can fintech startups secure their API frameworks?
Fintech startups must invest in secure interaction protocols and robust API monitoring systems to prevent vulnerabilities created by open APIs. Learn more about Preventing Fintech Security Issues
6. What are some common mistakes fintech startups make in combating financial crime?
Startups often deploy passive security measures, ignore regulatory differences across countries, and fail to implement strong customer education programs about financial risks. Discover Financial Crime Defense Insights
7. Are hybrid financial ecosystems effective against financial crime?
Hybrid financial infrastructures, combining traditional and decentralized systems, can balance efficiency and security. However, they must be resilient and adapted for diverse regional risks. See insights from Emerging Technologies in Finance
8. What role does human training play in risk management?
Even with advanced technology like AI, consistent human oversight and training for fraud recognition, such as identifying phishing attempts, remain crucial in mitigating risks. Understand Emerging Fintech Risks
9. How important is cross-border regulation for preventing financial crime?
Asia's diverse regulatory environment requires fintech companies to adopt tailored approaches for compliance that align with specific local regulations. Asia FinTech Survey 2025 Insights
10. What hyperlocal solutions work best for financial crime prevention?
Using locally adapted approaches like decentralized solutions for specific regulatory needs and integrating permissions for each market enhances the effectiveness of anti-fraud measures. Discover Hyperlocal Fintech Approaches
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
