Over the past decade, Southeast Asia has transformed into one of the most dynamic fintech ecosystems globally. Despite a global funding downturn, ASEAN’s fintech sector has remained resilient, innovative, and increasingly attractive to investors. In 2024, while global fintech investments declined by 28%, ASEAN’s saw only a small dip of 1%, underscoring the region’s strength and adaptability.

Central to this shift is the region’s strong focus on mobile technology, enabling millions to bypass traditional banking and access digital financial services. From urban hubs like Singapore to emerging markets such as Thailand, Indonesia, and Vietnam, fintech is powering inclusive financial growth. In fact, over 60% of the region’s 2024 fintech funding went into early-stage startups, showing that investors believe in locally built solutions designed for the region's unique needs.

Payments and alternative lending continue to dominate ASEAN’s fintech investment landscape, although a notable shift occurred in 2024. While alternative lending led in 2023, changes in interest rates and increased e-commerce activity boosted demand for payment solutions, which secured the highest share of funding at 23%. Super-apps like Grab, Shopee, and GoTo have played a crucial role by integrating payments, lending, and lifestyle services into single platforms, reshaping how users interact with financial services.

Technology adoption in ASEAN is driven by practical needs and happens at a rapid pace. Artificial intelligence is being used not just for automation but for developing region-specific customer engagement and risk assessment models. Blockchain is seeing early adoption in countries like Vietnam and the Philippines, particularly in cross-border payments. Meanwhile, the region’s cloud-first approach allows fintechs to sidestep outdated systems entirely, boosting their scalability and flexibility.

Emerging technologies like quantum computing and generative AI offer both opportunities and risks. While quantum algorithms promise breakthroughs in investment strategy optimization and near real-time credit assessments, they also challenge traditional cybersecurity protocols, demanding more robust encryption and risk frameworks.

Singapore continues to lead the fintech charge, accounting for 53% of total ASEAN funding in 2024. Thailand has surged to 24%, signalling a growing maturity, while Indonesia holds a steady 18%, driven by its large unbanked population and digital innovation.

The ASEAN fintech landscape offers a compelling case study in rapid digital transformation. Its journey mirrors Eastern Europe’s shift from traditional to digital finance in the early 2000s but at a faster pace and with greater technological integration. As the sector matures, the focus is shifting from customer acquisition to building sustainable business models and deepening financial inclusion.

With a blend of regulatory support, tech-savvy consumers, and a robust startup ecosystem, ASEAN is no longer just catching up, it’s setting the pace for the next wave of fintech innovation.

Sources: 

FinTech in ASEAN 2024: A Decade of Innovation (PwC, UOB, SFA). https://www.pwc.com/sg/en/publications/assets/page/fintech-in-asean-2024.pdf

Pulse of Fintech H2’24 (KPMG). https://assets.kpmg.com/content/dam/kpmg/sg/pdf/2025/02/pulse-of-fintech-h2-2024.pdf