In Southeast Asia, economic development has transformed much of the region. Brunei, having been blessed with, has seen its economy transform last century. Will this century continue to see that and will the like of fintech help?
Around the rest of Southeast Asia, notably in neighbouring Singapore and Malaysia for instance, fintech and wider digital economic development has been playing significant roles in recent economic development. How has fintech in Brunei been and can this have a similar role as it is in the rest of Southeast Asia?
Digital Transformation as Economic Diversification
Fintech development in Brunei is closely tied to its long-term economic vision. Under Wawasan Brunei 2035, the government has prioritised diversification, human capital development and innovation, positioning financial services and technology as key pillars of the economy.
This vision has translated into targeted policy action. The Financial Sector Blueprint 2016–2025, implemented by the central bank, laid the groundwork for fintech development through infrastructure, regulation and institutional coordination.
This year, a new financial sector blueprint is being developed, with a stronger emphasis on Islamic finance and sustainable finance as growth areas.
Digital transformation is central to this shift. Government initiatives aimed at building a national digital transaction hub, which is designed to integrate payment systems, digital wallets and cross-border transactions, reflect a broader ambition to modernise the financial ecosystem.
To note, among Association for Southeast Asian Nation (ASEAN) members in 2022, Brunei has the second-highest human development index and the third-highest digital adoption index, implying high quality of life and financial literacy.
With regards to fintech, Brunei has identified fintech as a key driver in increasing the contribution of the country’s financial sector to 8 per cent of gross domestic product (GDP) by 2035 from 5.6 per cent in 2020.
Financial Services Sector: Digital Transformation in Practice
Exterior of the Omar Ali Saifuddin in Bandar Seri Begawan Brunei on the island of Borneo IMAGE SOURCE GETTY
Brunei’s financial services sector remains relatively small but highly structured, with strong regulatory oversight from the central bank. Digital transformation is now accelerating within this framework.
A key milestone came in March last year with the launch of “tarus,” Brunei’s first national real-time payment system, enabling instant fund transfers between financial institutions. This system represents a significant step forward. It allows users to send money using simple identifiers, such as mobile numbers, bringing Brunei in line with real-time payment systems across ASEAN markets.
At the same time, the National Payment Hub Initiative continues to drive interoperability between banks and payment providers, ensuring that digital transactions can move seamlessly across platforms.
Banks are also adapting.
Digital banking services, mobile applications and e-KYC processes are becoming standard, supported by regulatory frameworks that emphasise security, compliance and interoperability.
Telecommunications providers, including Progresif, are increasingly integrating fintech services such as mobile payments and digital wallets into their offerings, further expanding access to digital financial tools.
The result is a financial system that is gradually becoming more digital, more connected and more efficient.
Fintech Ecosystem: Small but Structured
aerial view of Sungai Kebun Bridge with the water village at Bandar Seri Begawan, Brunei Darussalam. night shot IMAGE SOURCE GETTY
Brunei’s fintech ecosystem remains in its early stages, but it is evolving. Estimates suggest that the country hosts fewer than 10-20 fintech companies, with activity concentrated in payments, remittances and financial infrastructure. Examples of those include digital banking solution BIBD Nexgen Wallet and mobile banking app Baiduri b.Digital Personal (part of Baiduri Bank).
Rather than rapid startup growth, the ecosystem is shaped by institutional support. For instance, the Brunei Darussalam Central Bank (BDCB) established a fintech office in 2017 to promote innovation and provide a single point of contact for fintech development.
Also, country’s regulatory sandbox, first introduced in 2017 and updated in 2020, continues to serve as a controlled environment for testing fintech solutions.
Innovation initiatives are also expanding. For example, last year, BDCB, in collaboration with industry partners, launched the Fintellect Fintech Hackathon, aimed at fostering local fintech talent and encouraging new digital solutions.
Unlike many emerging markets, Brunei does not face severe financial inclusion challenges. Access to banking services is relatively high, supported by a well-developed financial system. However, opportunities remain in deepening digital usage and expanding financial services for specific segments.
One such segment is the country’s large foreign workforce, which represents around 23 per cent of the population and creates demand for affordable remittance solutions. At the same time, high transaction costs for traditional banking services, in particular interbank transfers, highlight the need for more efficient digital alternatives.
Fintech solutions, particularly in payments and remittances, are well positioned to address these gaps.
In terms of partnerships there have been several. Besides those mentioned earlier there have been others.
For instance, last year, Northern Trust announced signed an MOU with Universiti Brunei Darussalam (UBD) to develop digital and fintech talent and strengthen academic-industry collaboration.
Internationally, Brunei continues to align with global standards in areas such as AML, data protection and cross-border financial integration, reinforcing its position within ASEAN financial networks.
Brunei’s fintech ecosystem in 2026 is not defined by speed. The country is using digital finance as a tool for economic diversification, building a system that prioritises stability, interoperability and long-term sustainability.
