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WORLD NEWS | India leads Singapore and Indonesia in fintech research

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Author: Li Jiahui

SINGAPORE, February 13 (ANI): In a report released last week, India topped a fintech study of nine South and Southeast Asian countries published by Robocash Group.

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Robocash is a fintech company with offices in Asia and Europe that specializes in providing fintech solutions to populations underserved by traditional banking systems in emerging markets.

The South Asian country topped several categories, including the most funds raised and total revenue. Between 2000 and 2022, the years covered by the study, a total of $25.6 billion was raised across the four sectors surveyed, accounting for 48 percent of all funding received by the region.

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India also emerged as the leading country on the Robocash Southeast Asia FinTech Index. The index aggregates scores using the following measures – Share of Total Funding, Share of Total Revenue and Share of Total Active Companies. Singapore came in second and Indonesia came in third.

The objective of the Robocash report is to understand financial technology developments in established and emerging countries in the South and Southeast Asia region, namely India, Indonesia, Singapore, Philippines, Vietnam, Malaysia, Bangladesh, Pakistan, and Sri Lanka.

The survey selected the following four fintech industries – payments and transfers, alternative lending, e-wallets and digital banking. For research purposes, only companies located within the territory of specific countries were selected, while foreign entities were excluded.

Across the nine countries and four industries studied, there were 1,254 active fintech companies by the end of 2022. This is a nearly 45-fold increase from the 28 companies that existed before 2000. The growth of such companies accelerated between 2015 and 2020, with over 62% of the companies studied being founded during this period.

India has the highest number of such companies operating at 541, accounting for 43.1% of the total, followed by Indonesia with 165 (13.2%), Singapore with 162 (12.9%), Philippines with 125 (10%), Malaysia with 84 (6.7%) %), Vietnam 78 (6.2%). Of the countries surveyed, Pakistan, Sri Lanka and Bangladesh had the lowest number of fintech companies with 51, 27 and 21 respectively.

Among the companies surveyed, the largest number of companies were in the field of alternative lending, with 544 companies (43.4%). This is followed by payments and transfers with 496 companies accounting for 39.6% of the total studied, e-wallets with 118 companies (9.4%) and digital banks with 96 companies accounting for 7.7% of the total.

It is therefore no surprise that alternative lending, which includes services such as online microfinance, P2P lending, and point-of-sale financing (e.g., installment loans as shoppers check out), was the fastest growing of the four sectors from 2000 to 2000. Between 2022.

The number of companies in this sector increased from 8 to 544. Payments and transfers had the second highest growth rate (from 15 companies to 496 companies), followed by e-wallets (4 to 118) and digital banks (7 to 96).

Robocash points out that the four industries studied are by no means the dominant fintech industries in the region. While they account for 54.3% of all fintech businesses in the Philippines, other countries in the survey have a more diverse fintech sector, with these four sectors accounting for only 19.4% of all fintech companies in Indonesia and only 1% in Robocash’s India. 10.5% reported owning 5,176 fintech companies.

Over the 22 years covered by the study, the four fintech sectors raised a combined $53.3 billion, with India leading the way in terms of investment.

India received a total of US$25.6 billion (48% of total funding), followed by Singapore at US$14.7 billion (27.6%), Indonesia at US$7.5 billion (14.1%), the Philippines at US$2.4 billion (3.4%) and Vietnam at US$1.8 billion ( 3.4%).

India is a major global fintech market, which is no surprise given its large, relatively young population and high technology adoption rates.

Hemant Gala, head of financial services and banking at Indian digital payments giant PhonePe in 2021, is quoted as saying, “Digital payments have become a way of life in India and we have seen an influx of 10-15 million new customers in the last 12 months. The digital tide. The two factors driving this change are demonetization and the Covid-19 pandemic.”

A research report produced by consulting firm EY late last year and published by venture capital firm Chiratae Ventures predicted that India’s fintech industry will continue to soar in the next decade, with total assets under management (AUM) expected to grow at a compound annual growth rate ( CAGR) of 28.3%, will reach US$1 trillion by 2030, and total fintech revenue will climb to US$200 billion.

Digital lending, insurtech and wealthtech will be the strongest growth sub-sectors, driven by increased customization of solutions for specific segments, increased awareness and simplification of the policy purchase and claims process, and strong demand for investment solutions, the report said .

“The Indian fintech market has been a formidable global force, contributing the largest share of unicorns in India. We have always been a technology-first investor, believing in the power of data and technology, thus backing companies like EarlySalary, Kristal. ai, PB Fintech, ShopSe and Vayana, among others,” said Sudhir Sethi, founder and chairman of Chiratae Ventures, at the launch of the report. (Arnie)

(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)


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