The investments channeled to the fintech sector in the Association of Southeast Asian Nations, ASEAN, increased to USD4.3 billion in the first nine months of 2022. The amount is higher than the total investments in the sector between 2018 and 2020.
According to a joint report released today (Friday) by the professional services firm PwC Singapore, the Singapore Fintech Association (SFA), and the Economic Development Board (EDB), Singapore attracted most of the investments in the region from the fintech sector.
“Singapore serves as an excellent bridge for companies to reach the neighboring countries,” the report explained. “The city-state also boasts a diverse, multilingual talent pool and a wide range of funding sources for companies.”
In 2022, in a separate report published by PwC Singapore, the Singapore Fintech Association, and United Overseas Bank, as quoted by The Strait Times, Singapore and Indonesia received approximately 65% of the total fintech investments channeled to the sector in ASEAN.
The ASEAN region recorded an increase in investments toward fintech companies despite a challenging macroeconomic environment, the report added. The investments in the global fintech sector dropped to USD75 billion last year compared to USD139 billion in 2021. However, the sector is projected to grow by a compound annual rate of 16% between 2023 and 2028 to more than USD400 billion.
Digital Payment Systems
On top of that, the report disclosed that the most performing segment of the global fintech industry is in digital payments. The segment is projected to reach transactions valued at about USD9 trillion by 2023, with the number of users expected to rise to 5 billion next year.
Finance Magnates reported about a week ago that Singapore’s market regulator, the Monetary Authority of Singapore (MAS), had introduced new measures for the Digital Payment Token (DPT) service providers.
One of the measures is that the DPT service providers operating in the region must safely keep customers’ funds in a statutory trust before the end of the year. Besides that, the regulator wants the service providers to separate customers’ funds from their own.
Source: Finance Magnates