According to analysts in a private fintech services ecosystem in Europe and Asia, their numbers will double in SEA by 2027

Using their own data on the number of active fintech firms in four main sectors (cryptocurrencies, payments and transfers, digital lending and investments), analysts from a fintech ecosystem represented in seven markets in Europe and Asia have presented forecasts of fintech penetration per capita in South-east Asia (SEA) up to the year 2027.

Based on their data and the moving average method, taking into account the growth rates of fintech in South-east Asia between 2019 and 2023, the average fintech penetration had increased from 20 fintechs per 1m people to 46 per million.

Given that the macroeconomic conditions for fintech development will be favorable going forward, the number of fintech companies per capita in SEA is expected to double by 2027 to 100 firms per million people.

Specifically:

    • Singapore and Malaysia are “very likely” to continue leading in terms of absolute penetration of fintech per capita in the region, with 867 and 60 fintechs per 1m people respectively.

    • The third place is likely to be taken by Brunei (21 fintechs), followed by Vietnam (16) and Cambodia (13).


Explained the analysts from UnaFinancial: “One of the reasons for fintech growth in the region is the burgeoning middle class. For example, in Indonesia, it includes 52m people, while the next 40m belong to the ‘aspiring class’ where improvements in income and lifestyle are yet to take place. Another reason is the growth of the super-platform economy driving e-commerce, ride-hailing, food delivery and other popular services that employ digital payments and fintech.”

Finally, said the analysts, regulatory frameworks across SEA are highly accommodative, especially regarding the new digital innovations related to fintech. For example, there is a cross-border QR system to enable mobile payments, as well as streamlining of licenses for payments and money movements within the region.

“With conducive economic conditions, these factors are likely to fuel the projected growth of fintech in SEA in the coming years,” they added.