ASEAN’s fintech sector has seen remarkable growth, with funding rising more than tenfold since 2015, according to the Fintech in ASEAN 2024 report launched today by UOB, PwC Singapore, and the Singapore Fintech Association.
This growth, largely seen in payments and alternative lending, is set to advance further with the integration of Generative AI and quantum computing.
Despite global economic challenges and a recent “funding winter,” ASEAN’s fintech investments have shown resilience, with funding in the region’s six largest economies reaching US$1.41 billion in the first nine months of 2024.
This represents four percent of global fintech funding and marks a one-percentage-point increase year-on-year (YoY).
While the total funding was down slightly by less than one percent YoY, this reflects a recovery from the 71 percent decline seen in 2023 compared to 2022.
Over the past decade, fintech investments in ASEAN surpassed US$20 billion across nearly 1,500 deals, with payments and alternative lending remaining dominant.
These sectors have collectively drawn US$6.5 billion and US$4.1 billion, respectively.
Wong Wanyi, PwC Singapore’s fintech Leader, noted the sector’s resilience, attracting long-term investor confidence and positioning ASEAN as an innovation hub.
She added that advancements in quantum computing and GenAI will further drive new frontiers in financial services, providing faster, more secure solutions.
A significant driver in 2024 has been Singapore and Thailand, which led ASEAN’s fintech funding.
Singapore secured over half of ASEAN’s total with US$745 million and the highest number of deals. Thailand ranked second, surpassing Indonesia, with US$341 million.
This was largely attributed to two mega-deals: US$195 million for payment firm Ascend Money and US$140 million for financial blockchain firm GuildFi.
Together, Singapore and Thailand accounted for 76 percent of ASEAN’s total funding in 2024, with four mega-deals between them.
Interest in early-stage fintechs was notable, with seed and early-stage investments representing over 60 percent of ASEAN’s funding in 2024, highlighting investor optimism for emerging fintech innovation in the region.
The recent interest rate cuts by the US Federal Reserve are expected to support further growth.
When rates were previously cut between 2019 and 2021, ASEAN fintech funding peaked at US$6.36 billion in 2021, the region’s highest annual total in the past decade.
The report was launched at the Singapore Fintech Festival.
Janet Young, Managing Director and Group Head, Channels & Digitalisation and Strategic Communications & Brand, UOB, said,
“Fintechs have evolved from a disruptive force to an essential component of financial ecosystems over the past decade. ASEAN’s fintech sector continues to show promise, supported by improving macroenvironment and emergence of advanced technologies.
UOB has been a long term supporter of fintechs and will continue to look for opportunities for collaboration to bring innovation and better solutions to our customers and stakeholders across ASEAN.”
Shadab Taiyabi, President, Singapore Fintech Association, said,
“It is encouraging to see that ASEAN remains as a vibrant hub for fintech innovation, with the sector demonstrating resilience and adaptability in the face of ongoing volatility. The fintech ecosystem in Singapore continues to attract robust funding, driven by strong regulatory support and opportunities for cross-border collaboration.
Looking ahead, SFA remains committed to foster the growth of the fintech ecosystem while creating new opportunities for fintechs to leverage emerging technologies and strategic partnerships that will further strengthen the ecosystem.”
Featured image credit: Edited from Freepik
