UnaFinancial said Wednesday that the number of fintech companies per one million people in Southeast Asia may double by 2027, reaching 100.

This is supported by the growing super-platform economy, conducive regulatory frameworks and favorable economic conditions, according to its analysts report.

Analysts of UnaFinancial calculated fintech penetration per capita in Southeast Asia, using data on the number of active fintech companies in four main sectors: cryptocurrencies, payments and transfers, digital lending and investments.

From 2019 to 2023 the average fintech penetration increased from 20 to 46 fintechs per one million people.

The leader was Singapore with 400 fintechs, followed by Malaysia (22) and Cambodia (9).

Given that the macroeconomic conditions for fintech development will remain favorable, UnaFinancial said the number of fintech companies per capita in the region is expected to double again by 2027.

The forecast was based on the moving average method and took into account the growth rates of fintech in Southeast Asia between 2019 and 2023.

According to the report, 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 companies per one million people respectively.

The third place will be taken by Brunei (21), followed by Vietnam (16) and Cambodia (13).

“One of the reasons for fintech growth in the region is the burgeoning middle class. For example, in Indonesia, it includes 52 million people, while the next 40 million belong to the “aspiring class’ where improvements in income and lifestyle are yet to take place,” the analysts explained.

According to them, another reason is the growth of the super-platform economy driving eCommerce, ride-hailing, food delivery and other popular services that employ digital payments and fintech.

Finally, they opined that regulatory frameworks across Southeast Asia 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 Southeast Asia in the coming years,” they added.

UnaFinancial is a group of companies developing easy-to-use digital financial solutions in the Middle East, Asia and Europe.

Southeast Asia’s digital economy will contribute 56% to its GDP by 2027 : Una Financial