Fintech investments in Singapore saw an increase of US$61.5 million quarter over quarter despite continued decline in deal volume, according to the KPMG Pulse of Fintech report.
While the historical trends showed that this is not out of the ordinary, the decline may be a result of the move towards a more partnership-oriented fintech model in the country.
The Monetary Authority of Singapore (MAS) is driving the majority of fintech activities in the country. During Q2'17, MAS shifted its focus from education and innovation to promoting technology adoption and attracting companies to launch offerings in Singapore.
"Over the longer term, MAS hopes to see more fintechs using Singapore as a base to pilot and then deploy solutions into other countries within Southeast Asia, such as Indonesia and Thailand," said Chia Tek Yew, head of Financial Services Advisory, KPMG in Singapore. "The success of these cross-border solutions could prove the viability of using Singapore as a springboard for Asia-based expansion."
Funding steady in Asia
KPMG's report indicated that total fintech funding in Asia remained relatively steady quarter over quarter, with US$760 million invested across 51 deals during Q2'17, compared to US$790 million across 56 deals in Q1'17.
Specifically, Asia's Q2 fintech financing trends exhibited geographic diversity and a lack of mega financings.
Corporate participation continues to soar in the region, with corporate venture capital investment growing from 22.5 percent in Q1'17 to 36.6 percent in Q2'17, revealing a deep interest in fintech innovation from strategic players in Asia.
In Asia, blockchain will remain a relatively hot area of investment across much of the region, in addition to payments and lending.
"There seems to be a major push to transform Singapore into the world's blockchain leader, with an ever-increasing number of use cases in the country aimed at testing blockchain in government trade, land registry and tax functions, in addition to traditional banking and insurance," said Chia.
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