From BNPL solutions to AI-powered credit scoring, fintech companies are reshaping access to finance – and steadily outperforming traditional banks.
In Southeast Asia, home to more than 700 million people, fintech lenders are rapidly gaining ground in the consumer lending market. By offering faster, more flexible, and mobile-first financial services, they are increasingly replacing conventional banking models.
According to UnaFinancial estimates, the region’s fintech market reached $1 trillion in 2025. Within it, digital lending – the fastest-growing segment – expanded by more than 40%, placing Southeast Asia among the global leaders in fintech growth. This shift reflects a deeper change: access to credit is now driven less by banking history and more by a user’s digital footprint.
Growth Drivers
Several factors explain the rise of fintech lenders across the region. In major markets such as Indonesia, the Philippines, and Vietnam, roughly half of the adult population remains unbanked. Many of these individuals run small businesses or work in informal sectors, making it difficult to verify stable income or qualify for traditional bank loans.
At the same time, mobile adoption has surged. Millions of people rely heavily on smartphones, not just for communication but as their primary gateway to financial services. Applications like Shopee and Grab have become part of everyday life, and for many users, digital wallets and lending apps represent their first experience with financial products—replacing visits to physical bank branches.
Regulation also plays a key role. Authorities such as the Bangko Sentral ng Pilipinas (BSP), Indonesia’s Otoritas Jasa Keuangan (OJK), and the Monetary Authority of Singapore (MAS) impose strict requirements on banks, including capital adequacy, reserves, risk controls, and reporting. Obtaining a full banking license can take years. In contrast, fintech lenders operate under more flexible frameworks, allowing them to enter the market faster and scale more efficiently.
Regional Leaders
Akulaku Finance, one of Indonesia’s leading fintech lenders, increased its loan issuance by 23% in 2025, reaching $439 million. Nearly 90% of that volume came from Buy Now Pay Later (BNPL) services. In this segment, Akulaku competes directly with e-commerce platforms like Shopee and GoTo, as well as other fintech players such as Kredivo. With a strong base in Indonesia, the company is expanding into markets like the Philippines, Malaysia, and Thailand.
The Philippines has emerged as a key battleground. As the second-most populous country in Southeast Asia, it already sees fintech lenders accounting for more than 55% of the lending market. These platforms provide financing to individuals in agriculture, fisheries, and small businesses—segments traditionally underserved by banks. Instead of relying on credit history, fintech firms assess borrowers using alternative data, including mobile transactions, purchase behavior, and digital activity.
Among the fastest-growing players in the Philippines is Skyro, a digital-first consumer finance platform. Its business model combines e-commerce integration with offline retail partnerships. With around 9,000 partner stores, Skyro enables customers to access financing directly at the point of sale for items such as electronics and home appliances. Its BNPL installment plans have become one of the company’s most popular products, offering quick, short-term financing to underbanked consumers while helping retailers increase conversion rates. Since 2022, Skyro has issued loans exceeding $500 million.
AI Facilitates Fintech
Like other leading fintech companies, Skyro is actively implementing artificial intelligence in its operations. AI is used across the entire customer journey—from onboarding and identity verification to credit scoring, fraud prevention, and customer support. Routine inquiries are handled by automated systems, while more complex issues are escalated to human agents.
In 2026, Skyro launched an AI-powered blog designed to provide Filipinos with practical and accessible insights into personal finance, further strengthening its digital ecosystem.
Vietnam’s MoMo offers another example of fintech innovation. The company partners with retailers and e-commerce platforms while integrating an AI-based financial assistant. Beyond BNPL and microloans, MoMo provides payments, investments, and insurance services. With a valuation exceeding $2 billion, it has evolved into a financial super app serving around 30 million users.
Competitive Landscape
The rapid expansion of fintech in Southeast Asia has attracted a growing number of players. Today, the region hosts more than 2,000 fintech companies. Local firms compete not only with each other but also with international entrants—from Hong Kong’s Cashalo to Europe’s Revolut, both of which are expanding their regional presence.
However, this intense competition has led to signs of market saturation. According to Tracxn, fintech funding in Southeast Asia declined by 21% in 2025, indicating a more cautious investment environment.
This shift suggests that only the most scalable and resilient business models will continue to thrive. Companies that have successfully built operations in complex, underbanked markets now hold a competitive advantage—not just within Southeast Asia, but also in potential expansion to other regions.
Their expertise in alternative credit scoring, mobile-first distribution, and embedded finance solutions is highly transferable. These capabilities could prove valuable not only in emerging markets but also in underserved segments of developed economies.
A Global Testing Ground
Southeast Asia is no longer just a high-growth fintech region. It is increasingly becoming a global testing ground for financial innovation. The solutions developed here – from AI-driven lending to integrated mobile ecosystems – are likely to be exported worldwide in the coming years.
This article was supplied by a third party for publication. Readers should conduct their own research before using financial products or services. The Philippine Times does not provide financial advice or endorse specific lenders.
