PwC has released their research report, entitled FinTech in ASEAN 2024: A Decade of Innovation.
PwC noted that during the past decade, the global FinTech landscape has evolved rapidly, transforming financial services and “driving digital inclusion worldwide.”
Yet, the research report explained that considerable challenges still remain, as recent geopolitical uncertainty and economic headwinds have led to funding cuts.
Although ASEAN FinTech funding is projected to decline for the third consecutive year, the report released by PwC pointed out that there are signs of “resilience” that are emerging.
In PwC’s FinTech in ASEAN 2024: A decade of innovation report, they reflect on the pivotal moments that have shaped the industry over the last 10 years and explore the potential catalysts that “might fuel the next wave of FinTech growth in the region.”
Despite a global FinTech funding downturn, the report noted that ASEAN has shown resilience.
The research study shared by PwC added that during the first three quarters of 2024, funding across the ASEAN-6 economies (Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam) declined “by less than 1 per cent year-on-year, totaling US$1.4 billion.”
This stability contrasts with North America and Europe, “where funding dropped over 35 per cent. ASEAN‘s steady investment flows underscore the region’s adaptability and strength amid global challenges.”
The report released by the PwC added that during the past decade has seen the ASEAN FinTech landscape evolve from “disruptive innovation to becoming an integral part of the financial services ecosystem.’
As the ASEAN FinTech ecosystem matures, attention is turning “towards the next wave of technologies that will drive growth and innovation.”
Three technologies – Gen AI, quantum computing, and blockchain – are emerging as potential catalysts for “transformation, capable of reshaping how financial services are conceived, delivered and experienced.”