ASEAN attracting more investment in fintech

Investment in fintech (financial technology) around ASEAN increased three-fold in the first nine months of 2021 compared to 2020 as a whole, reaching a record $3.5 billion, of which Vietnam accounted for 11 per cent of total capital.

According to the FinTech in ASEAN 2021 report from UOB, PwC Singapore, and the Singapore FinTech Association (SFA), the rebound in fintech funding was driven by 167 deals, including 13 mega-rounds that accounted for $2 billion of total funding.

Vietnam’s fintech sector received $375 million in investment, with VNPay and Momo being among the top 10 most funded deals, at $250 million and $100 million, respectively, according to the report.

Most investors showed an interest in the final stages of businesses, which was reflected in ten out of 13 mega-rounds this year. This trend is a sign of a change in strategy by investors, as they approach the ASEAN market with a careful and less-risky attitude by supporting mature companies that have the opportunity to emerge strongly post-pandemic.

Payment, investment technology, and cryptocurrencies count among the sectors with the most investment, receiving capital of $1.9 billion, $457 million, and $356 million, respectively.

“Companies that have embraced fintech are reshaping the marketplace,” said Ms. Wanyi Wong, FinTech Leader at PwC Singapore. “With digital payments becoming the norm, and areas such as wealthtech and crypto assets fast gaining interest, our research findings indicate that consumers in ASEAN have come to embrace a wide range of fintech solutions along with the digital experience, and that they are ready to take on the digital future.”