Fintech funding holds strong in 2022, but signs of headwinds ahead

AMID a funding winter, fintech funding is still holding strong, with digital financial services taking the top billing for investments according to the Bain, Google and Temasek e-Conomy report 2022.

About US$4 billion has poured into fintechs in the first half of 2022, up from US$1 billion in the second half of 2021 and double the US$2 billion in the first half of 2021. Of the US$4 billion, Singapore grabbed the lion’s share at US$1.9 billion, followed by Indonesia with US$1.5 billion.

According to the Fintech in ASEAN 2022 report, late-stage fintechs have snagged the bulk of funding for the nine-month period in 2022 at 54 per cent. Early-stage fintechs followed at 40 per cent. In 2021, the roles were reversed, with early-stage fintechs garnering 54 per cent of funding, while late-stage fintechs took up 43 per cent.