Robocash Group‘s ‘State of SEA Fintech 2022 Report‘ reveals that between 2000 and 2022, the total number of fintechs in Southeast Asia rose from 34 to 1254. The largest increase occurred between 2015 and 2020. This period saw the launch of around 62 per cent of all existing companies from the four sectors under consideration.
The Robocash Group study aimed to understand how fintech has developed in emerging countries in Southeast Asia. Focuses were namely: India, Indonesia, Singapore, the Philippines, Vietnam, Malaysia, Bangladesh, Pakistan and Sri Lanka.
Of these countries, the largest number of companies operate in India, the report details. A total of 541 fintechs are based in India, accounting for 43.1 per cent of all fintechs found.
Following India, Indonesia hosted the second-largest number of 165 fintech companies (13.2 per cent); followed by:
The highest concentration of fintechs is in alternative lending (544, 43.4 per cent). This is closely followed by payments and transfers (496, 39.6 per cent). E-wallets(118, 9.4 per cent) and digital banking (96, 7.7 per cent) were the least populated sectors.
Robocash analysts commented on the findings for the four focus sectors:
“The results show that the Philippines puts the most emphasis on these four fintech areas, which constitute 54.3 per cent of all fintechs in this country.
“The rest of the distributing goes as follows: Sri Lanka – 41.5 per cent (65), Vietnam – 37, 7 per cent (207), Pakistan 24.2 per cent (211), Indonesia 19.4 per cent (850), Malaysia 18.3 per cent (458), Bangladesh 15 per cent (140), India 10.5 per cent (5176).
“The lower the share, the higher the diversification by types of fintech businesses in the country and the competition between them.”
Between 2000 and 2022, fintechs in the four focus sectors raised a total of $53.3billion in funding and earned $17.8billion.
Robocash found that on average, fintechs across Southeast Asia saw a rate of return of 33.4 per cent. Essentially, for every dollar of funding received, fintechs earned an average of just over 33 cents.
The majority of funding for the entire region ended up in India – seeing $25.6billion (48 per cent). Singapore gained $14.7billion (27.6 per cent), while Indonesia attracted $7.5billion (14.1 per cent). In comparison, the remaining countries raised lower amounts: