According to Accenture’s latest report, Fintech investments in Singapore have quadrupled in the first half of 2019, reaching US$453 million, compared to last year’s US$118 million, placing the country as the third largest fintech market by funds in Asia-Pacific, just behind China and India
Out of the funds raised, 28 per cent went to insurtechs, while fintech companies received 27 per cent, and those in lending took 25 per cent. Examples of larger investments occurring the first half of this year include the US$100 million raised by cloud company Deskera and the US$80 million raised by financial product marketplace GoBear.
Divyesh Vithlani, a managing director at Accenture and Asean Financial Services practice lead, said: "The increase both in deal value and the number of deals is a good indicator of what's to come, and bodes well for the future development of cutting-edge financial technology in Singapore.
"There's a lot brewing in the Singapore fintech ecosystem, and this steady flow of funds shows investors' confidence in the industry’s future growth potential. The forthcoming virtual banking licenses will help create more opportunities for fintech start-ups and traditional banks to partner and cooperate, and should add another wave of investments in the sector."
However, the global fintech investment has fallen sharply due to China’s stagnation in fundraising and deal activity, which partially offset the strong gains in the US, UK and several other European countries. For the six months ended June 30, the total value of fintech deals globally came in at US$22 billion, down 29 per cent from US$31.2 billion recorded last year. However if a mega deal like Ant Financial’s record US$ 14 billion fundraising in May 2018 was discounted, the global fintech investments would have climbed 28 per cent this year, Accenture explained.
In the US, large deals have become more common, raising the value by 60 per cent. Meanwhile, in the UK, fintech investments nearly doubled to about US$ 2.6 billion. Closer to home in Hong Kong, fundraising posted a near seven-fold increase in the first six months of 2019, with FinEX Asia leading the growth of fundraising by securing a US$100 million credit line.
Link to Full Article