Fintech investment in the Asia-Pacific region reached an annual record high of $4l.8 billion with 607 deals in the first half of the year a report showed on Wednesday. The region says a diversity of jurisdictions attract goodsized deals according to the KPMC in India report. In the Asia-Pacific region a number of fintech subsectors that attracted substantial interest and hype over the past l2 to 24 months cooled off considerably in the reported period including retail payments insurtech and B2C solutions.
Crypto NFTs and blockchain also came off the investment burner. Regulators are continuing to focus on making industry changes more so in a country like India to support open banking and decentralized finance in an orderly and safe way the report mentioned. The fintech space has witnessed a correction in valuation and investment flow globally as well as in India.
Focus on building scale has not been supplemented by a focus on cash flow and profitability said Sanjay Doshi Partner and Head Financial Services Advisory KPMC in india. The Reserve Bank of India’s recent guidelines on credit card licensing digital lending could force many fintech companies, especially loan service providers and non-regulated loan originators to revisit their business and operating model.
This segment should see an increase in deal flow activity driven by investment flows in wealth tech insure tech and M&A of Fintech NBFC’s said, Doshi. Meanwhile, global investment in fintech fell to $l07.8 billion despite robust VC funding. The Americas accounted for the largest amount of VC funding ($27.2 billion) While EMEA set a new record high for a six-month period ($l6.6 billion) the report mentioned.
