ASEAN witnessed a remarkable increase in fintech investments, totaling USD4.3 billion, during the first nine months of 2022.
In the first nine months of 2022, the Association of Southeast Asian Nations, or ASEAN, boosted the amount of money invested in the fintech industry to USD4.3 billion. The sum exceeds all investments made in the industry between 2018 and 2020.
According to a report jointly released today (Friday) by the Economic Development Board (EDB), the Singapore Fintech Association (SFA), and the professional services company PwC Singapore, Singapore attracted the majority of regional investments in the fintech sector.
Singapore is in the lead
“Singapore serves as an excellent bridge for companies to reach the neighboring countries,” the research stated. Additionally, the city-state has a talent pool that is broad and multilingual as well as a variety of funding options for businesses.
Singapore and Indonesia received almost 65% of the total fintech investments routed to the industry in ASEAN in 2022, according to a separate report from PWC Singapore, the Singapore Fintech Association, and United Overseas Bank, as reported by The Strait Times.
Despite a difficult macroeconomic situation, the ASEAN area saw an increase in investments in fintech firms, according to the research. The amount of money invested in the global fintech industry fell to USD 75 billion last year from USD 139 billion in 2021. However, between 2023 and 2028, the sector is expected to increase at a compound annual rate of 16%, reaching more than $400 billion.
Electronic payment methods
Additionally, the survey revealed that the digital payments sector is the most successful one of the worldwide fintech industry. In 2023, experts estimate that the market will generate USD9 trillion in transaction value, and in the following year, there will be 5 billion users worldwide.
The Monetary Authority of Singapore (MAS), the market watchdog in Singapore, reportedly put additional restrictions on Digital Payment Token (DPT) service providers around a week ago, according to a report by Finance Magnates.
One of the measures requires the DPTs doing business in the area to securely hold client monies in a statutory trust by the year’s end. In addition, the regulator wants the service providers to keep their own money separate from that of their clients.