Despite global headwinds, India’s fintech sector remained a key player in the Asia-Pacific (ASPAC) region in 2024. While total fintech investment in ASPAC fell to a ten-year low of $11.4 billion, India managed to retain investor confidence, with fintech funding slipping slightly from $4.4 billion in 2023 to $4.1 billion in 2024, according to KPMG’s Pulse of Fintech H2’24 Report.
This marginal decline stands in stark contrast to China’s fintech market, which saw investment drop sharply from $2.6 billion to just $687 million. Meanwhile, Australia experienced a fintech funding surge, more than doubling from $839 million to $2.1 billion, reflecting shifting investor interest within the region.
“Over the next year, we’re likely going to see a lot more happening in the generative AI and AI space when it comes to financial services. The technology suits so many needs, from risk and controls to wealth management. It has the potential to really reshape and reinvigorate the fintech sector, particularly here in China,” said Andrew Huang, Head of Fintech, KPMG China.
On a global scale, the fintech industry struggled with economic uncertainty, geopolitical tensions, and high-profile elections across major economies. The total investment in fintech fell to $95.6 billion and the volume of deals dropped to 4,639, lowest in seven years.
In the second half of 2024 (H2’24), global investment fell from $51.7 billion to $43.9 billion, with mergers and acquisitions (M&A) and venture capital (VC) funding slowing down. However, a late-year surge in Q4’24 saw M&A deal value nearly double from $7.4 billion to $14.2 billion, signaling renewed investor confidence heading into 2025.
Despite the setbacks of 2024, there is growing optimism for a fintech investment rebound in 2025. The expected decline in interest rates and easing of economic uncertainty following major global elections could revive investor sentiment.
