Green Fintech Seen As Promising New Growth Area in Southeast Asia

Green fintech has become a promising new growth area in Southeast Asia, with green fintech firms bringing innovative solutions to help businesses and governments address challenges and opportunities of going green.

This insight was part of the report – Fintech in ASEAN 2023: Seeding the Green Transition – launched by UOB, PwC Singapore, and the Singapore Fintech Association (SFA).

“Despite markets and investors becoming more cautious this year, bright spots remain with certain fintech segments such as early-stage and Green fintech showing resilience,” said Janet Young, managing director and group head, Channels & Digitalisation and Strategic Communications & Brand at UOB.

UOB, Young added, is “committed to journeying through this uncertain climate with the broader fintech and green tech ecosystem” by leveraging its our regional network to seize opportunities and drive innovation.

This year, Singapore retained its podium position within the region, securing $747 million fintech funding, or 59% of total funding in ASEAN. Though this was a decrease of over 65% year-on-year, Singapore still attracted 51 deals, the highest in the region.

The deals were distributed across eight fintech categories, the widest range in the region.

Singapore and other ASEAN fintech firms continue to face the same funding winter seen globally this year. According to the report, fintech investments in the six biggest ASEAN economies came to $1.3
billion in the first nine months of this year (9M23), a sharp decrease of around 70% compared with the same period in 2022.

Shadab Taiyabi, president, Singapore Fintech Association, said:

While the landscape for fintech funding across the region has certainly been trickier to navigate, it is good to see that Singapore retains its position as the region’s most vibrant destination, attracting the highest number of deals.

Among the six ASEAN countries, Singapore and Indonesia accounted for more than 86% of total fintech funding and 80% of funding deals in ASEAN.

Indonesia contributed to 27% of funding and 16% of the total deals worth $340 million, largely driven by one mega deal. Vietnam and Malaysia experienced a modest increase in their share of number of deals by the third quarter in 2023, with a six percentage point and four percentage point growth respectively.

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