Southeast Asia’s fintech demonstrated resilience in 2024, with funding across its six largest economies declining by less than 1%, a stark contrast to the 28% drop in global fintech funding. This follows a sharp 71% decline in 2023, with investments primarily directed toward early-stage startups and payment technologies. The U.S. Federal Reserve’s recent interest rate cut will further stimulate the fintech sector, making funding more affordable and boosting venture capital activity. Historically, such cuts have spurred funding growth, as seen in ASEAN’s record US$6.36 billion peak in 2021. Over the past decade, ASEAN fintech companies have attracted over US$20 billion in investments.
Singapore continues to lead the ASEAN fintech ecosystem. In the first nine months of 2024, it accountedfor 62% of deal volume (62 out of 99 deals) and 53% of deal value (US$745 million), marking its 10th consecutive year as the region’s top funding hub. Monetary Authority of Singapore acknowledged some challenges during Singapore Fintech Festival 2024 such as interoperability and cross-border payment linkages, which the Project Nexus try to address. Additionally, Singapore, under the Global Finance and Technology Network (GFTN) hopes to boost Singapore’s next phase of fintech journey with its forums, advisory, platform, and capital pillars
