Singapore’s fintech sector saw a recalibration in 2024, with investments totalling $1.3b (US$1.3b), marking the lowest level since 2020. According to KPMG’s Pulse of Fintech H2’24 report, this shift aligns with a global trend towards sustainable growth, as investors prioritise proven business models and profitability, particularly in AI-integrated investments.
Despite the overall decline, Singapore remains a hub for fintech innovation. Investment in crypto and blockchain rose by 22% in H2 2024, reaching $267m (US$267m), driven by AI-powered digital asset solutions and blockchain infrastructure. AI-powered fintech also surged, with investments jumping from $24m (US$24m) in H1 2024 to $160m (US$160m) in H2 2024, reflecting strong interest in regtech and automation.
Anton Ruddenklau, Lead of Global Innovation and Fintech at KPMG International, noted, “AI could be a sleeping giant for fintech investment. Over the next year, AI-focused regtechs will likely see the most traction among investors.”
The H2 2024 period saw a 41% increase in the total value of fintech deals in Singapore, despite a 36% drop in deal volume. This indicates a focus on high-value, early-stage investments with clear paths to profitability. The payments sector, ranked third among fintech verticals, showed resilience with nine transactions totalling $57.4m (US$57.4m).
Looking ahead, Singapore’s focus on sustainable growth and innovation positions it at the forefront of fintech evolution. The Singapore Budget 2025 is expected to further accelerate this momentum by introducing initiatives to integrate AI at scale and attract entrepreneurial talent.
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