ING’s Economics Department has developed a fintech index that assesses a country’s fintech environment. The index covers three broad aspects that can influence and drive FinTech investment decisions. In total 73 developing and emerging economies are included.
The index is built on three key concepts:
1. The (potential) demand for fintech-led financial inclusion which considers the urgency for fintech to financially include individuals as well as MSMEs, especially those located in rural areas far away from bank branches.
2. The market supply side of fintech technologies. This is an assessment of a country’s supportive environment for FinTech.
3. The political and regulatory risk environment. This is a proxy for a country’s investment climate. A country could have a high urgency for fintech, good infrastructure and ecosystem, but may be less attractive due to an unstable investment climate. As such, it might not fit the investment mandate.