Jointly complied by UOB, PwC Singapore, and the Singapore Fintech Association, the round-up edition of the '2024 Fintech in ASEAN' report, recapping a decade of innovation during the evolution of fintech in the region from 2015 to 2024, was launched on November 6.
The report revealed that on the back of an uncertain macroeconomic climate recently, fintech investments in the six biggest ASEAN economies are finally seeing some light at the end of the tunnel. Though the region's total funding of $1.41 billion was down by less than one per cent on-year, it was a significant recovery from the 71 per cent fall seen for the same period last year against 2022.
Funding for fintech in ASEAN has surged more than 10 times since 2015, growing at an exponential rate compared to global FinTech funding. This has fuelled growth in sectors such as payments and alternative lending, and is poised to advance further with the increasing prevalence of GenAI and quantum computing.
Janet Young, managing director and group head of Channels & Digitalisation and Strategic Communications & Brand at 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 an improving macro-environment and the emergence of advanced technologies."
The latest report showed regional fintechs garnering more than $20 billion in investments over the last decade, with close to 1,500 deals. Fintechs in the payment and alternative lending sectors were the most sought after, making up more than half of ASEAN's total funding at $6.5 billion and $4.1 billion respectively.
Singapore snared the lion's share of fintech investments in ASEAN for the 10th consecutive year, securing more than half of the region's total funding with $745 million in the first nine months of the year. Singapore also topped the number of deals at 62 across nine fintech categories.
Thailand rose to second place, ahead of last year's runner-up Indonesia, with $341 million or 24 per cent of ASEAN's Fintech funding from the start of the year. Singapore and Thailand accounted for 76 per cent of total fintech funding and close to 68 per cent of funding deals in ASEAN in the same period, having clinched the only four mega deals in the region.
