Funding for financial technology in the ASEAN region has seen a remarkable increase, growing more than tenfold since 2015. This growth has been particularly strong in sectors like payments and alternative lending. The recent report "FinTech in ASEAN 2024: A decade of innovation," launched by UOB, PwC Singapore, and the Singapore FinTech Association (SFA), highlights these developments.
The report indicates that ASEAN's FinTech funding reached $1.41 billion in the first three quarters of 2024, accounting for four percent of global FinTech funding. Despite a slight year-on-year decrease, this represents a significant recovery from a previous sharp decline.
Janet Young from UOB commented on the evolution of FinTechs over the past decade, stating that they have become an essential part of financial ecosystems. She emphasized UOB's commitment to supporting FinTechs and fostering innovation across ASEAN.
The report reveals that regional FinTechs attracted over $20 billion in investments through nearly 1,500 deals over the last decade. Payments and alternative lending sectors were notably prominent, securing substantial portions of total funding.
Wong Wanyi from PwC Singapore highlighted ASEAN's resilience amidst global economic uncertainties and noted the potential impact of quantum computing and generative artificial intelligence (GenAI) on future growth. These technologies are expected to drive advancements in financial services.
Shadab Taiyabi from SFA expressed optimism about ASEAN as a hub for FinTech innovation. He noted Singapore's continued success in attracting investment due to strong regulatory support and opportunities for cross-border collaboration.
With recent interest rate cuts by the US Federal Reserve, the industry anticipates increased investor interest and improved exit opportunities. GenAI is poised to enhance customer experiences with personalized advice and improved risk management, while quantum computing could revolutionize investment strategies and security measures.
Singapore led ASEAN FinTech investments for the tenth consecutive year with $745 million secured in 2024 so far. Thailand followed with $341 million, surpassing Indonesia due to two major deals.
The "FinTech in ASEAN 2024" report was unveiled at the Singapore FinTech Festival. For further details, visit go.uob.com/fintech2024.