back Back

Asia Pacific records USD11.6 billion in FinTech investment: Report

By Leandra Monteiro

February 26, 2021

  • China
  • Kpm
Share

KPM, Asia Pacific, Asia, FinTech, China

Asia Pacific FinTech’s have attracted USD 11.6 billion across 565 deals from venture capital, private equity and M&A in 2020, compared to USD 16.8 billion in 2019, reaching a six-year low. This was attributed to the decline in investment due to the pandemic.

In comparison, global FinTech funding was USD105 billion in 2020, the third highest FinTech investment on record despite a significant drop compared to USD165 billion in 2019, according to KPMG’s Pulse of FinTech H2’20 report.

Total FinTech investment in China was lower in 2020, at USD1.6 billion, from USD4.8 billion in 2019. This reflects the significant maturity of China’s FinTech sector, particularly in the payments space which is dominated by a small number of tech giants. The payments space showed the most regional resilience.

After the global pandemic brought many deals to a halt, the scenario changed in H2’20. The second half of the year was witness to deals such as Australia-based eNett was acquired by US-based WEX for USD577 million, Australia-based Judo Bank raised USD209 million, South Korea-based Toss raised USD177 million.

Andrew Huang, Partner and FinTech Leader, KPMG China says: “In China, we are seeing growth in a number of emerging fintech sectors, including blockchain, regtech and wealth management. One big change we have seen in 2020 has been the focus of these fintechs, with many now focusing their efforts on empowering traditional financial institutions rather than providing direct to consumer products.”

A segment that did well was Insurtech, which continued to gain traction among investors in China. In H2’20, Shuidi, a crowdfunding platform which focuses on medical expenses, raised two rounds of funding totaling USD380 million.

Barnaby Robson, Partner, Deal Advisory, KPMG China said, “Pandemic-era accelerated growth and loose monetary policy has driven up stock-market valuations for tech companies. Shareholders of privately owned fintech groups recognize there is a window to list at excellent valuations, and we expect significant IPO activity in 2021/22.”

Incumbent banks in Mainland China made significant investments internally in 2020 in order to transform their digital capabilities. Several also continued to set up subsidiaries in order to build their capabilities and provide B2B digital banking services to smaller institutions.

Previous Article

February 26, 2021

Varo unveils the Varo Believe Program for American to build Credit

Read More
Next Article

February 26, 2021

Backbase integrates Zafin’s services to boost engagement banking platform

Read More










IBSi Daily News Analysis

fraud, FinTech

November 25, 2022

China

Why UK FinTechs are investing heavily in APP fraud prevention

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

November 25, 2022

Suresh Viswanathan joins Nationwide as Chief Operating Officer

Read More

November 25, 2022

Railsr releases embedded banking dashboard, Insights

Read More

November 25, 2022

Tink launches Balance Check for smoother direct debits

Read More

Related Reports

Sales League Table Report 2022

£1,500.00 / year

Know More
Global Digital Banking Vendor & Landscape Report Q3 2022

£1,500.00 / year

Know More
Wealth Management & Private Banking Systems Report Q3 2022

£1,500.00 / year

Know More
Global Transaction Banking Vendors and Landscape Report Q3 2022

£1,500.00 / year

Know More
Treasury & Capital Markets Systems Report Q3 2022

£1,500.00 / year

Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2022