The Pulse of Fintech KPMG 2016 report found that the Asian quarter’s success was primarily down to two $1 billion plus funding rounds to China-based companies Lu.com and JD finance. The total investment for the first quarter of 2016 hit a new record of $2.6 billion. Specifically in Southeast Asia, the report suggests that governments are waking up to the opportunity and supporting fintech innovators and investors.

Fintech Investment in Southeast Asia

In Thailand, the national e-payment system will be launched by the government this fall and aims to make Thailand cashless and support the country’s digital economy policy. The Monetary Authority of Singapore (MAS) recently launched a National Research Foundation Fintech Office as a ‘one stop virtual entity to support all fintech investment in Singapore and South Korea is trying to catch up with the global trend. On June 15, the Fintech Center of Korea, an affiliate of South Korea’s Financial Services Commission, hosted a Fintech Demoday in Singapore to promote Korean fintech firms’ entry into Southeast Asia.This office is part of the government’s $19 billion Research Innovate Enterprise 2020 Plan to foster innovation.

Additionally, marketplace lending platforms continued to attract investment attention in Southeast Asia, primarily for their ability to provide financing for small businesses and to address the needs of the underbanked or unbanked in the region. Insurance fintech in Southeast Asia is also growing with global players such as Allianz and Zurich Insurance launching Zurichclick in Indonesia.

The total investment for the first quarter of 2016 hit a new record of $2.6 billion.

“InsuranceTech has really taken off in the last 6 months both in terms of new innovations and investment,” said Jan Reinmueller Principal Advisor and Head of Innovation Ventures, KPMG in Singapore.

After a drop off in the last quarter of 2015, Asia has broken new funding highs in the first quarter of 2016. Thanks to governments support and online payment bottlenecks in ecommerce, substantial fintech investment in Southeast Asia and the rest of the region will not slowdown.

 Download the Pulse of Fintech KPMG Report Here