The FinTech Index

The FinTech Index
Assessing digital and financial inclusion
in developing and emerging countries
ING Economics Department • November 2016

Executive Summary

Content
Executive Summary 2
Introduction4
The Why: countries differ in their FinTech environment. 4
The Who: a reference card for different types of investors. 5
The How: an in depth look at FinTech demand, supply and risk. 6
FinTech Index Results 7
A regional perspective 8
Looking at FinTech demand and supply 9
Looking at risk 10
Improving the supply side: focus on FinTech infrastructure or ecosystem? 11
Country infographics
This report is accompanied by a separate document with 73 FinTech country infographics.
Country Examples 12
India and China: FinTech can reach a third of the global population 13
Indonesia and Vietnam: FinTech-led financial inclusion in remote areas 14
Brazil and Mexico: Fast-developing FinTech sector 15
Albania
Demographics
(Source: United Nations)
Population and share
in world population
0.04%
2.9 mln
World rank #66
Expected population
growth 2015 vs 2050
200%
150%
100%
50%
32%
Urgency for Financial Inclusion FinTech Opportunities
(Source: World Bank / IFC)
(Source: World Bank)
Unbanked Population MSME Credit Gap Biometrics
Alternative Credit Scoring Virtual Currencies
(% of population over 15 years old) (% of MSMEs)
38%
1.5 mln
Developing
World Rank #63
40%
8%
0.1 mln
Enterprises
18%
Birth Registration
(% of children under 5 who are
registered)
Least Urgent
Moderately Urgent
Urgent
99%
Private Credit Bureau Coverage
(% of population covered by private
credit agencies)
0%
Albania
Public Credit Registries
(% of population covered by public
credit agencies)
27%
Albania
Cost of remittances
(average % of money sent)
Most Urgent
Urgent
Moderately Urgent
8.1%
0%
-7%
-50%
2015 2050
Albania World
62%
Unbanked
Banked
Well-served
Underserved
34%
Unserved
No credit needs
Most Urgent
28%
Developing
World
13%
Developing
World
Least Urgent
Unbanked
Strength of
Population
MSMEs
Appendices16
1 FinTech index methodology 17
2 Remarks on the FinTech Index 18
3 List of country abbreviations 19
Economy
(Source: IMF / Worldbank)
GDP (2015, billion
dollars) and share in
world GDP
0.02%
$11.5 bln
World rank #57
GDP per capita
(dollars)
$10,004.9
$3,965.0
FinTech Ecosystem
(Source: World Bank / Global Innovation Index)
Time to Start a Business Innovation Index
(in days)
4 Most Innovative
3 Innovative
2 Moderately Innovative
20
1 Least innovative
6
0
3
FinTech Infrastructure
(Source: ITU)
Mobile Subscription Internet Use Density
Density
(% individuals using the internet)
(subscriptions per 100 inhabitants)
63%
106 105
36%
Legal Rights
Political
Stability
Control of
Corruption
1
2
3
Innovation
4
5
6
7
8
Time to Start
9
a Business
10
Electricity Reliability
Unserved
Poverty
Rural
Population
Mobile
Penetration
Internet
Penetration
Electricity
Coverage
Albania
World
Albania
Developing
Albania
Developing
Albania
Developing
Urgency for Financial Inclusion
World
World
World
FinTech Infrastructure
Colophon20
Developing
World Rank #10
Developing
World Rank #32
Developing
World Rank #35
Developing
World Rank #7
FinTech Ecosystem
Political and Regulatory Stability
Albania
Upper middle income economies
ING Economics Department 3 A Billion to Gain • November 2016

Introduction: the why
Countries differ in their FinTech supportive environment…
…as such FinTech is likely to take off at different speed

Introduction: the who
A reference card for different type of investors

Introduction: the how
An in depth look at FinTech demand, supply and risk

Assessing a country’s FinTech climate
A regional perspective

Assessing a country’s FinTech climate
Looking at FinTech demand and supply

Assessing a country’s FinTech climate
Countries could have a high need for FinTech but might be too
risky to invest in

Assessing a country’s FinTech climate
Improving a countries FinTech supply side: focus on FinTech
infrastructure or ecosystem?

Countries in focus: the world’s most populated countries
India and China:
FinTech can reach a third of the world population

Countries in Focus: South-East Asia
Indonesia and Vietnam:
FinTech led financial inclusion in remote areas

Countries in Focus: Latin America
Brazil and Mexico:
Fast developing FinTech sector

Appendices

Appendix
FinTech Index Methodology

Appendix
Remarks on the FinTech Index

Appendix
List of country abbreviations

Colophon

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The final text was completed on November 15 th , 2016
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