Fintech investment in the Asia-Pacific region has seen a decline in the first half of 2026 amid persistent geopolitical uncertainty, the Iran conflict, and concerns over inflation and interest rates.
This is the findings of KPMG‘s latest Pulse of Fintech report, which revealed that investments for fintech in the region remained muted as it fell to US$4.6 billion across 350 deals in the half-year period compared to US$7.1 billion across 426 deals in 2025.
According to KPMG, VC deals accounted for much of the investment in the first half of 2026, amounting to US$3.4 billion, while PE investment remained quiet, and M&A deal value fell to US$1.2 billion from US$2.7 billion between H2’25 and H1’26.
The fall reflected weaker investment activity across several of the region’s largest fintech markets, including Singapore.
Meanwhile, as for the global setting, fintech investment grew considerably over the past three six-month periods, rising to US$$103.1 billion from US$50.5 billion. Global deal volume fell to 2,100 in the first half of 2026 from 2,501 deals in the second half of 2025. KPMG notes that this remains below historic norms, reflecting continued investor selectivity despite higher capital deployment.
Global fintech M&A activity strengthened, with deal value increasing to US$67.9 billion across 394 deals in H1’26 from US$37.2 billion across 514 deals in H2’25.
