2nd September 2026
By Anjali Kochhar
The gung-ho market sentiment in fintech over the past decade may seem to be decelerating, according to latest market figures. Singapore’s fintech sector saw a sharp decline in investment during the first half of 2026, as investors became more selective and funding increasingly concentrated around a smaller number of larger transactions.
Singapore Fintech Funding Drops Sharply in H1 2026
According to KPMG’s latest Pulse of Fintech report, Singapore-based fintech companies raised more than $499 million across 53 deals in H1 2026. This represents a significant drop from the $1.45 billion raised across 97 deals during the same period in 2025. The latest figure also marks the lowest first-half fintech investment total in Singapore since at least 2019.
The slowdown was particularly visible during the first quarter. Singapore fintech firms attracted only about $88 million across 26 deals in Q1. Activity improved considerably in the second quarter, with around $411 million invested across 27 transactions.
One Major Deal Drives Singapore’s H1 Fintech Funding
However, much of this recovery was driven by a single major transaction. A $320 million funding round for a cross-border payments platform in June accounted for nearly two-thirds of Singapore’s total fintech investment during the first half of the year.
KPMG Singapore financial services partner Anton Ruddenklau said the headline investment figure does not tell the entire story. Investors are increasingly directing capital toward established platforms rather than spreading funding across a larger number of companies.
Several areas continued to attract investor interest. Artificial intelligence and machine learning featured in 18 deals, generating $365.9 million in disclosed investment. Meanwhile, cryptocurrency and blockchain companies recorded 27 deals worth $95.5 million, with 15 transactions involving seed or early-stage companies.
Payments Sector Attracts $332 Million in Funding
Payments remained another major area of activity, attracting $332 million across three deals, although the June transaction represented the overwhelming majority of that amount.
Singapore’s performance also differed from the broader global fintech market. Worldwide fintech investment rose to $103.1 billion in H1 2026, compared with $72.2 billion in the second half of 2025. However, global deal volume declined from around 2,500 transactions to approximately 2,100, showing that investors globally are also placing larger amounts into fewer companies.
The figures suggest that Singapore’s fintech ecosystem is not necessarily losing investor appeal, but is moving into a more selective funding environment. Stronger companies and sectors such as AI, payments, digital assets and established financial platforms continue to attract capital, while smaller ventures face a more challenging fundraising landscape.
