Analysts of UnaFinancial has projected that share of fintech in the gross domestic product (GDP) of Singapore will reach 3.56 percent in 2027.
UnaFinancial said in a statement on Thursday that in 2022, 0.32 percent of Southeast Asia (SEA)’s GDP consisted of venture and other investments in the fintech industry.
By 2027, it said this share is projected to reach 1.65 percent, growing five times.
Among other countries of the region, it said Singapore will have the largest share of fintech investments in its GDP – 3.56 percent (+2.45 percent).
This was followed by Vietnam – 2.42 percent (+2.27 percent), Thailand – 2.40 percent ( +2.19 percent), Indonesia – 1.15 percent (+0.86 percent), Philippines – 0.31 percent (+0.18 percent), Malaysia – 0.26 percent (+0.16 percent), Myanmar – 0.20 percent (+0.20 percent) and Brunei – 0.03 percent (+0.03 percent).
The study considered Singapore, Indonesia, the Philippines, Vietnam, Malaysia, Thailand, Myanmar and Brunei.
First, it evaluated the share of direct investment in the GDP of SEA countries.
Singapore showed the highest investment attractiveness – in 2022, the proportion of direct investment in its GDP equaled 41.05 percent.
It is followed by Brunei – 22.36 percent, Myanmar – 11.31 percent, Malaysia – 6.47 percent and others.
For SEA, this figure amounted to 8.44 percent.
“Such a distribution of the countries is not surprising given their respective economic performance indicators, such as GDP per capita, R&D intensity, and labor productivity,” the analysts said.
It is also noted that the share of fintech in the volume of direct investments in SEA equaled 3.82 percent.
Indonesia had the largest proportion of 13.52 percent while Singapore had 2.71 percent.
“Singapore is leading fintech development and digitalization in SEA, because it has all the necessary conditions for it. Indonesia, however, is catching up with it,
“The country is the most populated in the region, which explains the increased potential for economic growth driven by the introduction of fintech services,” UnaFinancial’s experts said.
According to the statement, Singapore showed the greatest impact of fintech on GDP growth.
In 2022, the share of fintech investments in the country’s GDP made up 1.11 percent.
In the SEA region, it amounted to 0.32 percent, while in the world it was 0.25 percent.
For the world, this indicator is projected to be 1.07 percent (+0.82 percent) by 2027.
“We expect that over the next five years, the return on investment in Southeast Asia’s fintech will increase, which will gradually augment its position as a driver of economic growth,” – the experts say.
UnaFinancial is a group of companies offering easy-to-use digital solutions in Asia and Europe.
Through its artificial intelligence (AI)-based, machine learning and data driven technologies and processes, UnaFinancial provides precise and comprehensive risk management, comfort and speed for customers.
Technologies and processes enable strong unit economics and superior growth rates driving a robust business performance.
In 2022, UnaFinancial issued $420 million in loans, representing a 61 percent year on year growth.
The revenue for 2022 amounted to $139.1 million. The net profit has seen a significant rise, reaching $13.1 million as of December 31, 2022.
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