Fintech funding in the Asia-Pacific region fell in the first half of 2025, according to a recent report by KPMG.
Both fintech investment and deal volume remained very weak, with just $4.3 billion in investment across 363 deals during the said time period, compared to $7.3 billion across 444 deals in second half of 2024.
The first quarter of 2025 saw particularly poor results, with investment falling to $1.6 billion, as deal sizes in the region remained relatively low.
Further, during the six-month period, the IPO market in Hong Kong (SAR) started to come back for fintech companies, as insurtech companies appeared first off the mark to take advantage, with a number listing or filing plans to list heading into the second half of the year.
Stablecoins and tokens have also been a growing topic of conversation in the fintech sector, driven in part by the rising interest globally. According to KPMG, Hong Kong (SAR) has become the epicentre of activity during the first half of 2025 to some degree, as in May, it passed a Stablecoins Bill to provide a robust regulatory regime for stablecoins, including a new licensing regime.
Among other trends to watch for in the second half of 2025 are:
• Stablecoins and tokenised money continuing to attract robust interest within central banks, commercial banks, payment service providers and MNC (multinational corporation) platforms.
• Financial market infrastructure (FMI) continuing to modernise across payments, national registries and digital identity domains
• Data management and generative AI priorities for central banks and financial regulators driving intense interest within incumbent financial institutions.
• Core banking renewal investments across tier 2 and tier 3 banks in Australasia and Southeast Asia.
• Fraud and financial crime platforms evolving to meet growing phishing, scams and money laundering threats.
