Since 2000, Asian fintech stocks have experienced remarkable growth, increasing by 1200%, according to industry experts.
UnaFinancial’s analysts, in their study of the fintech sector, created the UnaFinancial Global Fintech Index (UFGFI) to measure the performance of fintech stocks worldwide. This index includes data from 303 fintech companies across 35 countries, offering a broad perspective on the industry’s evolution and market trends.
The UFGFI has grown by over 300% since Jan 1, 2000, reaching 413.62 points by the end of 2023. This rise is equivalent to a market capitalisation of US$5.43 trillion (approx. S$7.30 trillion).
According to UnaFinancial, “APAC can be considered the most profitable region for fintech.” The APAC region has outshone other regions with a 1216% increase in its fintech index with the UnaFinancial APAC Fintech Index (UFAFI), reaching 1,315.54 points.
The largest segment within the index is the Digital Payments sector, which includes 65 companies and makes up 21.45% of the index. Following closely is the Digital Business Solutions sector with 64 companies, accounting for 21.12%.
Other key sectors include Digital Commerce (16.50%), Cryptocurrencies & Blockchain (10.56%), Digital Investments (8.91%), Digital Banking (8.58%), Digital Lending (6.27%), and Others (6.6%).
In terms of regional distribution, North and South America lead with 122 companies, with 40.26% of the index. APAC follows with 101 companies (33.33%), Europe with 63 companies (20.79%), and the Middle East & Africa with 17 companies (5.61%).
The APAC region’s fintech market capitalisation, approximately US$1 trillion (approx. S$1.34 trillion), suggests significant growth potential. In comparison, the fintech indices for North and South America (UFNSAFI) and Europe (UFEFI) grew by 814% and 104%, respectively, during the same period.
To compare UnaFinancial’s regional findings with global benchmarks, results were recalculated starting August 2004. The Asian index UFAFI demonstrated a 1255% increase. This is higher than the S&P 500, which rose by 333% over the same period.
Other benchmarks such as the Euro Stoxx 50 and the Chinese Hang Seng showed gains of 70% and 32%, respectively. The MSCI All-Country World Equity Index, which includes nearly all global stock quotes, while its IT sector index increased by 830%. /TISG
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