Singapore's Fintech Sector Faces Challenges but Maintains Strong Leadership amid Global Downturn

The optimum investment that Singapore's fintech sector expects to realize in 2024 is pegged at $1.3 billion, specifying its investments on artificial intelligence, blockchain, and digital payments for sustainable growth.

Investment in the fintech space has significantly recalibrated in 2024, with a total investment amounting to $1.3 billion-the lowest registered since 2020, according to the KPMG Report- Pulse of Fintech H2'24. Such decline coincides with the general worldwide trend as fintech investment plunged at a seven-year low by US$95.6 billion.

Singapore is still a big attraction for fintech innovation despite the cautious investments. The importance given to AI-powered solutions and blockchain technology continues to make the country a major player in such emerging innovation technologies. Investments in blockchain as well as crypto increased by 22% in H2'24, amounting to $267 million, owing to a strong presence of AI digital asset solutions and blockchain-based financial infrastructure.

AI-assisted financial technology experienced the most impressive investment increase rising from $24 million in H1'24 to $160 million in H2'24, illustrating booming activity in regtech and business automation as well as agentic AI solutions.

The overall deal volume might dip; however, for Singapore, its fintech deals increased by 41% in H2'24, amounting to a phenomenal $781 million, which points to later-stage investments. Added to that is making Singapore further solid in the digital assets and payments landscape by doing advancement such as FAST and PayNow, which will trigger growth in future.

Continued sustainable innovation, along with the support for AI under Budget 2025, positions Singapore as a fintech leader in 2025 and beyond.