UnaFinancial is a group of companies developing easy-to-use digital financial solutions across Asia and Europe. The group aims to provide simple and reliable access to finance through innovative technologies, focusing on what customers truly need. Since its foundation, UnaFinancial has served more than 17 M clients, granting access to loans worth over USD 2 billion.
A recent analysis conducted by UnaFinancial has identified the regions of Asia with the greatest potential for fintech lending. The study, which ranked regions based on 14 critical factors, highlights South Asia as the leader with 1.152 points, followed closely by Southeast Asia (0.806).
Singapore | September 26, 2024 — South Asia secured the top spot with a multivariate average score of 1.152. Despite having the lowest digital penetration – 37% of smartphone owners among Internet users and 34% of digital payments users – the region benefits from a large share of young population and strong fintech industry development.
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South Asia also stands out with 43 incubators for alternative lending companies and 118 funding rounds in the industry, making it the leading region in terms of fintech investments and startup activity.
Southeast Asia ranked second with a score of 0.806. The region boasts strong digital infrastructure, with 59% of the population using digital payments, 62% of smartphone owners, and 24 incubators supporting the growth of fintech companies.
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Although the average income per capita ($42 USD) and investments in the sector are lower than in other regions, the high digital adoption and a significant number of alternative lending companies signal strong future growth prospects.
In comparison, West Asia and East Asia show lower growth potential. West Asia ranked third with a score of 0.773. The region benefits from the highest income per capita ($66 USD) and strong investment ($2.31 billion USD), yet lags in establishment of fintech companies and incubator support.
East Asia, with a score of 0.698, excels in digital payment usage (93%) and mobile connectivity (124 per 100 people), but faces challenges due to a smaller share of young population and a reliance on traditional financial institutions.
Analysts of UnaFinancial comment: “As fintech lending continues to develop across these regions, we can expect rapid growth driven by digital adoption, increased investment, and the expansion of alternative lending services. South and Southeast Asia are particularly well-positioned to lead this trend, paving the way for a more inclusive financial future.”
The study compared the fintech lending potential across South, Southeast, West and East Asia, based on a multivariate average methodology. Central Asia was excluded from the comparison due to the emerging stage of fintech lending development.
The key indicators included mobile broadband subscriptions, average income, Internet usage, smartphone penetration among Internet users, investment in alternative lending, share of young population, number of incubators for alternative lending sector, adoption of digital payments, access to bank accounts, access to formal credit, demand for borrowed funds, number of alternative lending companies and funding rounds.
