Over the entire history, fintechs in alternative lending, digital banking, payments and transfers, e-wallet sectors have raised a grand total of $53.3 billion and earned $17.8 billion, said in a study revealed by Robocash Group on last Thursday.

According to the study, the total rate of return (total revenue / total funding) is approximately 33.4 percent, which means that for every dollar attracted, fintechs earn an average of 33.4 cents per year on transactions related to their activities.

The study also showed the biggest bulk of the funds is flowing to India – $25.6 billion (48 percent), Singapore – $14.7 billion (27.6 percent).

Following next are Indonesia – $7.5 billion (14.1 percent), the Philippines – $2.4 billion (3.4 percent), Vietnam – $1.8 Bn (3.4 percent), and Malaysia – $966 million (1.8 percent).

The smallest part of funds is flowing to Pakistan – $240 million (0.5 percent), Bangladesh – $24 million (0.05 percent), Sri Lanka – $307,000 (0.001 percent).

In 2021, India, Indonesia, and Singapore were the top earning countries.

India earned $10 billion (57.2 percent) in revenue, Indonesia earned $2.4 billion (13.7 percent), and Singapore earned $1.9 billion (10.6 percent).

Vietnam stands out with a revenue of $1.7 billion (9.4 percent), followed by the Philippines generating $875 million (4.9 percent). Bangladesh, Malaysia and Pakistan contribute with $287 million (1.6 percent), 283 million (1.6 percent) and 167 million (0.9 percent) respectively, while Sri Lanka has the least at 24 million (0.1 percent).

It is worth noting that India is seeing the highest concentration of investment stages – 53.8 percent of the total number of companies, followed by Singapore – 14.3 percent and Indonesia – 8 percent.

The highest investment activity is observed in the alternative lending sector — 45.8 percent of fintech companies, then in payments and transfers — 38.8 percent, digital-banking — 8.5 percent, E- Wallets – 6.9 percent.

However, in terms of return on investment (total revenue / total funding), the most effective country is, oddly enough, Bangladesh – 7840.9 percent, then Pakistan – 686.4 percent, Vietnam – 117.6 percent, Indonesia – 68.7 percent, Malaysia – 48.5 percent, Philippines – 39.7 percent, Sri Lanka – 29.7 percent, India – 25 percent, Singapore – 16.5 percent.

Such extreme values in the first two countries (Bangladesh and Pakistan) are due to near-zero fundraising rates, while their revenue level is still below the SEA average.

Meanwhile, companies that have reached the public stage have raised $16.4 billion to date.

India is seeing the highest concentration of investment stages (excluding unfunded) – 53.8 percent (444), then in Singapore – 14.3 percent (118), Indonesia – 8 percent (66), Malaysia – 6.5 percent (54), Vietnam – 6.1 percent (50), Philippines – 5.9 percent (49), Pakistan – 3.8 percent (31), Bangladesh – 1.1 percent (9), Sri Lanka – 0, 5 percent (4).

The highest investment activity (excluding unfunded) is
observed in the alternative lending sector — 45.8 percent (378), then in payments and transfers — 38.8 percent (320), digital-banking — 8.5 percent (70), E- Wallets – 6.9 percent (57).

It is noted that the largest relative number of unfunded companies are located in Sri Lanka – 24 (85.7 percent of the total number of operating companies in the country), followed by the Philippines – 84 (63.2 percent), Indonesia – 111 (62.7 percent) , Bangladesh – 12 (57.1 percent), Pakistan -21 (40.4 percent), Malaysia – 36 (40 percent), Vietnam – 31 (38.3 percent), Singapore – 46 (28 percent), India – 97 (17.9 percent).

This once again confirms the uneven distribution of funding.
Thus, the most funded country is India while the most unfunded country is Sri Lanka.

Overall, the largest number of fintech companies operate in India – 541 (43.1 percent), followed by Indonesia – 165 (13.2 percent), Singapore – 162 (12.9 percent), Philippines – 125 (10 percent), Malaysia – 84 (6.7 percent), Vietnam – 78 (6.2 percent), Pakistan – 51 (4.1 percent), Sri Lanka – 27 (2.2 percent), with the smallest number is located in Bangladesh – 21 (1.7 percent).

Notably, the largest number of companies are focused on the alternative Lending sector — 544 (43.4 percent), followed by payments and transfers — 496 (39.6 percent), E-Wallets — 118 (9.4 percent), with the least popular sector being digital-banking — 96 (7.7 percent).

In the period from 2000 to 2022, the total number of fintehc companies increased by 3588 percent – from 34 to 1254.

From 2000 to 2022, the alternative lending sector grew the fastest — 6700 percent (from 8 to 544), then payments and transfers — 3207 percent (from 15 to 496), E-Wallets — 2850 percent (from 4 to 118), digital- banking – 1271 percent (from 7 to 96).

The results show that the Philippines puts the most emphasis on these four fintech areas, which occupy a little more than half of all fintech in this country – 54.3 percent (no less than 230 of all Philippine fintechs).

The rest of the distributing goes as follows: Sri Lanka – 41.5 percent (65), Vietnam – 37, 7 percent (207), Pakistan 24.2 percent (211), Indonesia 19.4 percent (850), Malaysia 18.3 percent (458), Bangladesh 15 percent (140), India 10.5 percent (5176).

Robocash is a group of companies, which provides FinTech services in Asia and Europe.

Founded in 2013, the group focuses on providing technological finance solutions for the underserved by the traditional banking system.

Sustainable tech funding in SEA is growing 2.5 times faster than the global average, says Robocash