SINGAPORE, Feb. 6 (Xinhua) -- Singapore's fintech sector amassed total funding of 2.2 billion U.S. dollars in 2023, a 68 percent decline compared to 2022, according to a report issued by accountancy giant KPMG Tuesday.
Deal activity also saw a sharp drop, halving to 189 in 2023 from the previous year, the report said.
The dampened investor sentiment can be attributed to geopolitical conflicts, a high-interest rate environment, and a lackluster exit environment across regions, which prompted fintech investors to exercise caution and conserve their cash reserves throughout 2023, according to the report.
However, investors were optimistic about artificial intelligence (AI) performance. Total investment in Singapore's AI sector exceeded 480 million U.S. dollars across 2023, including over 330 million dollars in the second half, up 77 percent from the first six months.
"While 2023 was a depressed year for the fintech market overall, Proptech, ESG fintech, and investors embraced AI-focused fintechs that helped particularly in the last six months," said Anton Ruddenklau, Global Head Fintech and Innovation, Financial Services, KPMG International. ■