As the Asian financial market expands and new business models are introduced, the need for efficiency and automation comes to the fore. From issuing, trading and investing, to market infrastructure, fintech is set to revolutionize fixed income markets with collaboration among various players in the region.

Thailand's fixed income market has seen rapid development over the past few years, thanks to the Thai government's openness to innovations. "The government is very open-minded for tech and changes," says Paroche Hutacharoen, senior expert on bond market development, public debt management office at Ministry of Finance Thailand, at The Asset 13th Asian Bond Markets Summit in Singapore.

"Bank of Thailand sees the importance of collaboration with fintech companies. And it is utilising digital currency for interbank payments and settlements." says Hutacharoen.

Emerging technology, big data and AI are starting to play a role in risk management and asset allocation. "On the asset management side, we apply AI machinery in terms of risk management," says Angie Lin, co-founder and president at FinEX Asia. "AI help us to predict the future so that I can pick the good apple out of the bunch of apples," Lin adds.

In banking industry, compliance has become a major issue, as central banks require a higher level of transparency and financial stability. "For banks, most of the changes during the past decade focused on regulation and technology," says Sanjay Garodia, founder and CEO at Covalent Capital.

While financial institutions generally hold an open view of fintech collaboration, several challenges remain unsolved, according to the panellists.