Fintech – An Emerging-Markets Story?
05 February 2020
Fintech adoption is highest in emerging countries
Given the relatively low traditional banking development in emerging countries, Fintech (and notably mobile payment) have found fertile ground and little competition, allowing them to spread fast.
- Mobile- and smart-phones have been the trojan horses carrying Fintech into the most remote corners of the world.
Asian countries the most attractive
Within the emerging markets, Asian countries offer a higher relative wealth, as they have mostly benefited from the stunning growth of China, as well as pure demographic factors. No wonder investments focused in this area.
- China has been the engine of Asian growth over the past few decades.
- Asia is home to >60% of the global population.
High penetration rates achieved – what next?
Emerging markets penetration rates are topping out, but underlying growth remains, driven by horizontal expansion (increased services) and improving overall wealth levels. On the other hand, developed countries offer average wealth levels that are multiples of those in emerging markets, and penetration rates that leave plenty of room for growth.
- Striking the right balance across verticals and geographies will be key.
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