International Finance

Vietnam, Singapore receive 87% of fintech funding in SE Asia

Southeast Asia fintech investment
Fintechs in SE Asia raised $1.14 bn during the first nine months of 2019, compared to $679 mn in 2018

Fintech startups in Vietnam and Singapore accounted for around 87 percent of the total investments raised by fintech startups in Southeast Asia, according to a report published by PricewaterhouseCoopers, United Overseas Bank and the Singapore Fintech Association.

According to the report, fintech startups in Southeast Asia raised investment worth $1.14 billion during the first nine months of 2019 compared to $679 million during the same period in 2018.

Of the $1.14 billion raised, Singapore alone attracted 51 percent of the total fintech investment made in Southeast Asia which is around $733.8 million, a 70 percent rise when compared to the same period in 2018.

Janet Young, Head of Group Channels and Digitalisation at United Overseas Bank told the media, “Singapore’s favourable regulatory and business environment, strong investor interest, and maturing Fintech sector continue to make it an attractive base for firms that are looking to tap ASEAN’s growth potential.”

Fintech startups in Singapore are also being helped by the Singaporean government’s push to develop the island-state as Southeast Asia’s fintech hub. The Monetary Authority of Singapore (MAS) also announced its decision to roll out digital banking licences earlier this year. Recently, Singapore also hosted the world’s largest fintech festival.

In Vietnam, fintech startups have raised $410 million during the first nine months of the year. The investment raised is around 150 times higher compared to $2.72 million raised during the same period last year.

However, another report published by CB Insights revealed that investment in fintech in Asia could fall to the lowest in four years, despite an increase in venture-capital backing. Fintech startups throughout Asia raised around $4.1 billion during the first three quarters of 2019, whereas, around $22.9 billion was raised during the same period in the region.

Investment in the fintech sector globally amounted to $8.9 billion during the first three quarters of 2019.

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