The fintech market in Southeast Asia is expected to reach US$1.1 trillion in 2025, according to a forecast by UnaFinancial, a digital finance company with operations in Asia and Europe.

The company said the market was valued at US$907 billion in 2024, with digital payments and transfers making up nearly half of the volume.

Digital commerce, digital banking, and digital investments followed, while digital lending and blockchain remained smaller segments.

UnaFinancial projects the fastest segment growth in digital lending, which is expected to rise by 40.1%, or US$8.7 billion.

Digital payments are set to grow 20.1%. The region’s share of the global fintech market rose from 1.4% in 2014 to 2.6% in 2024.

East Asia remains ahead, but Southeast Asia’s market shows an upward trend driven by digital adoption and government support.

All figures and projections cited are from UnaFinancial’s analysis.

🔗 Source: Una Financial

🧠 Food for thought

1️⃣ Digital lending surge addresses Southeast Asia’s massive credit gap

Digital lending’s projected 40.1% growth in 2025, the fastest among all fintech categories, reflects the region’s significant unmet credit demand 1.

This growth aligns with the fact that only 27% of adults in Southeast Asia have formal bank accounts, and 33% of small businesses cannot secure loans or credit lines 2.

The $8.7 billion increase in digital lending volume highlights how fintech companies are addressing a gap that traditional banks have struggled to fill 1.

In the Philippines, for example, 50% of small businesses lack access to formal loans, often relying on informal lenders with interest rates ranging from 10% to 50% 2.

Digital lenders are leveraging alternative data sources, such as transaction histories, to create credit profiles for previously unbanked individuals, allowing them to serve markets that traditional banks have avoided due to the lack of conventional credit data 2.

2️⃣ Payments infrastructure drives Southeast Asia’s fintech foundation