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Asia has taken the global lead in funding fintech startups reports Forbes. Average funding received per company by region is as follows:

  • Asia: $34.6 million per deal (130 deals)
  • US: $20.4 million per deal
  • Europe: $12 million per deal

More fintech companies are being backed by venture capital funding at 33% annual growth.

Crowdfunding, cross-border transactions, P2P lending, mobile and electronic payments are some of the startups that have vastly enhanced the performance of financial operations across different consumer segments. According to a survey conducted by Ernst & Young, the top reasons for utilizing fintech services among consumers are:

  • Convenience in the account setup procedures
  • More attractive rates and fees
  • Better quality service and products

The top reason for not using fintech services is lack of awareness as 53% respondents agreed with this statement, according to the survey.

According to research firm Celent, more than 75% of estimated investments are put towards maintenance, meaning that money is mostly spent on monitoring rapidly changing regulations and not innovating new technologies. This seems to be a global trend in the financial technology sector, as Thailand’s government is working to relax regulations. Singapore reports to have set up a regulatory ‘sandbox‘ to facilitate fintech development and Malaysia has also been working to improve regulations to enable fintech acceleration.

Despite Asia attracting the most funding, it doesn’t necessarily mean that fintech growth is accelerating at a fast speed, as reports showed that investments in Asia for Q2 have slowed down compared to the same period last year.

A  version of this appeared in Forbes on July 20. Read the full version here.

Southeast Asia Startup Funding

Golden Gate Ventures has raised a $60 million fund from investors including Temasek Holdings Pte and Facebook co-founder Eduardo Saverin as it seeks to sustain its pace of investment in Southeast Asia’s startups.

Golden Gate Ventures is one of the earliest VC firms to target the region. Its $10 million debut fund fueled investments in 30 startups across seven countries, including flea market app Carousell and online grocer Redmart.

“We were one of the earliest funds and we rode the wave that took over the region,” said Lauria, Golden Gate’s managing partner. The second fund was oversubscribed by $10 million, according to the company. “The ecosystem is now significantly bigger and there are a lot more deals. We want to double down on the opportunity.”

Southeast Asia, home to some of the world’s fastest growing economies, is approaching a tipping point, according to a recent report by Google Inc. and Temasek.

The region’s internet economy is predicted to grow six-fold to US$ 200 billion in the next decade and has attracted US$ 1.7 billion in investment capital this year alone. With this new development, Southeast Asia’s startups remain one of the hottest sectors to both regional and global venture capital funds.

A version of this appeared in Bloomberg on June 14. To read the full article, click here.