ASEAN’s fintech sector is experiencing impressive growth, with funding increasing more than tenfold since 2015. FinTech in ASEAN 2024 Report It was released today UOBPwC Singapore, Singapore Fintech Association.
This growth will primarily be seen in payments and alternative lending, and will be further driven by the integration of generative AI and quantum computing.
Despite global economic challenges and the recent ‘funding winter’, ASEAN fintech investment shows resilience, with the region’s six largest economies raising 1.4 billion in financing in the first nine months of 2024. Reached 10 million USD.
This represents 4% of global fintech funding and represents a 1 percentage point increase year-on-year (y-o-y).
Total funding decreased slightly by less than 1% year-on-year, but this reflects a recovery from the 71% decline seen in 2023 compared to 2022.
Over the past decade, fintech investment in ASEAN has exceeded USD 20 billion across nearly 1,500 deals, with payments and alternative financing still being the dominant focus.
These sectors collectively attracted US$6.5 billion and US$4.1 billion, respectively.
PwC Singapore’s fintech leader Wong Wan-Yi noted that the sector’s resilience has earned the confidence of long-term investors and positioned ASEAN as an innovation hub.
He added that advances in quantum computing and GenAI will further push new frontiers in financial services, providing faster and more secure solutions.
Key drivers in 2024 will be Singapore and Thailand, which have led FinTech funding in ASEAN.
Singapore won the most deals, securing more than half of the ASEAN total with US$745 million. Thailand came in second place with USD 341 million, ahead of Indonesia.
This is primarily due to two huge deals: USD 195 million for payments company Ascend Money and US$140 million for financial blockchain company GuildFi.
Singapore and Thailand together accounted for 76% of ASEAN’s total funding in 2024, with four mega deals during that time.
Interest in early-stage fintech is significant, with over 60% of ASEAN funding in 2024 being seed and early-stage investments, demonstrating investor optimism for emerging fintech innovations in the region was highlighted.
Recent interest rate cuts by the US Federal Reserve are expected to support further growth.
When interest rates were previously lowered from 2019 to 2021, ASEAN fintech funding reached US$6.36 billion in 2021, the region’s highest annual total in a decade.
This report is singapore fintech festival.
Janet Young, Managing Director and Group Head of Channels & Digitalization and Strategic Communications & Brand at UOB, said:
“Over the past decade, fintech has evolved from a disruptive force to an integral part of the financial ecosystem. ASEAN’s fintech sector continues to be promising, supported by an improving macro environment and the emergence of advanced technologies. is shown.
UOB is a long-term supporter of fintech and will continue to look for collaboration opportunities to bring innovation and better solutions to customers and stakeholders across ASEAN. ”
Shadab Tayavi, Chairman of the Singapore FinTech Association, said:
“It is encouraging that ASEAN continues to be a vibrant hub for fintech innovation and that the sector has shown resilience and adaptability in the face of continued volatility.Singapore’s fintech ecosystem , continues to attract strong funding with strong regulatory support and opportunities for cross-border collaboration.
Looking to the future, SFA remains committed to fostering the growth of the fintech ecosystem and creating new opportunities for fintechs to leverage emerging technologies and strategic partnerships that further strengthen the ecosystem. ”
Featured image credit: Edited from freepic
