ASEAN’s financial technology sector experienced a significant drop in funding during the first three quarters of 2025, reaching its lowest point since 2016. According to the “FinTech in ASEAN 2025: Navigating the New Realities” report, jointly released by United Overseas Bank (UOB), PwC Singapore, and the Singapore FinTech Association (SFA), both total funding and deal numbers have decreased across the region’s six largest economies.
Total funding for ASEAN FinTechs fell by 36 percent to approximately US$835 million compared to the same period last year, while the number of deals dropped by 60 percent to 53. Despite this decline, there was a notable increase in average deal size—up by 42 percent to US$21.4 million—which points to investor preference for established companies that can demonstrate profitability and resilience.
The report highlights that mature, late-stage FinTech firms accounted for 67 percent of total regional funding in this period, marking a substantial year-on-year increase. The average investment per late-stage deal rose by 40 percent to about US$112 million, driven largely by three major deals totaling nearly US$450 million.
Ms Janet Young, Managing Director and Group Head at UOB, commented: “As ASEAN’s FinTech sector recalibrates, innovators continue to show remarkable resilience. The rise in average deal size and strong performance of late-stage companies underscore investor confidence in the region’s long-term potential as a thriving digital economy. We believe that innovation is the key to driving sustainable growth and financial inclusion. Guided by our commitment to building the future of ASEAN, we will continue to foster collaboration, support the catalysing of new solutions and empower businesses to seize the opportunities in the digital future.”
Ms Wong Wanyi, FinTech Leader at PwC Singapore said: “Over the past decade, the FinTech landscape in ASEAN has seen significant growth and innovation. Mobile payments and Artificial Intelligence-driven platforms have boosted financial inclusion. Collaboration among ASEAN countries has enhanced cross-border transactions and economic integration. Despite slower funding and lower valuations, investor confidence persists, fuelled by sophisticated FinTechs that have successfully adapted to market shifts, putting them ahead of the curve. Such resilience is often grounded in strong risk management, agile business models, comprehensive organic and inorganic expansion strategies, as well as effective stakeholder communication. Capital is expected to increasingly flow toward ventures with strong value propositions and execution excellence. If we continue in this trajectory, FinTech will keep ASEAN at the forefront of global innovation.”
Ms Holly Fang, President of SFA added: “Singapore’s position as the region’s leading FinTech hub reflects the strength of its collaborative ecosystem, where regulators, financial institutions, and innovators work together to drive meaningful change and sustainable growth. The sector’s focus on sustainable growth and profitability marks an important step in the maturation of the FinTech ecosystem, where firms are being tested on their ability to sustain innovation amid an increasingly volatile and uncertain environment. As the industry continues to mature, SFA remains committed to supporting FinTechs at every stage of growth, fostering innovation, and strengthening regional connectivity to advance Singapore’s FinTech ecosystem.”
Singapore remained central within ASEAN’s fintech landscape during this period—attracting more than 87 percent of all regional funding (over US$725 million). This represents a notable rise from previous years’ shares; it held 57 percent in 2024 and 65 percent in 2023. The majority of these investments were directed toward blockchain applications for financial services and investment technology.
Most deals within Singapore were pre-series or early-stage investments—comprising roughly four-fifths of activity—while eight out of ten top-funded ASEAN fintechs are based there; five are late-stage companies.
Elsewhere across Indonesia—the second largest market—funding share declined sharply from one-fifth last year down to four percent this year alongside fewer deals closed overall. The Philippines matched Indonesia for second place with five completed deals; alternative lending company Salmon secured one of these top-funded positions as an early-stage firm.
Malaysia, Thailand and Vietnam collectively accounted for less than ten percent of total regional funding with limited transaction volumes reported.
Despite ongoing challenges including reduced capital inflow and increased competition among startups across Southeast Asia’s core markets (Indonesia Malaysia Philippines Singapore Thailand Vietnam), stakeholders remain optimistic about operational improvements paving way for longer-term sustainability within fintech ecosystems.
The full “FinTech in ASEAN 2025: Navigating the New Realities” report was launched at today’s Singapore FinTech Festival; further details can be found at go.uob.com/fintech2025.
