Singapore’s fintech sector experienced a significant decline in investment during the first half of 2026, drawing US$499m across 53 deals, as reported by KPMG’s Pulse of Fintech H1 2026. This marks a notable drop from US$1.45b across 97 deals in the same period last year, making it the most subdued first half in nearly a decade.
The investment landscape was uneven, with a quiet first quarter of US$88m across 26 deals, followed by a rebound in the second quarter to US$411m across 27 deals. This recovery was largely driven by a single US$320m investment in a cross-border payments platform in June, which accounted for nearly two-thirds of the total fintech investment.
Key areas of focus included artificial intelligence (AI) and machine learning, which attracted US$365.9m across 18 deals. Payments remained a strong vertical, bolstered by the significant cross-border payments deal. Digital assets and cryptocurrency also maintained a strong presence, with 15 of 27 deals concentrated in seed and early-stage rounds.
Anton Ruddenklau, Partner and Head of Financial Services at KPMG in Singapore, noted, “Investors are being far more selective, consolidating capital behind a small number of scaled, high-conviction platforms.” Despite the dip, Singapore’s strategic advantages, such as a trusted regulatory environment and strength in payments and digital assets, continue to attract capital.
Globally, fintech investment rose to US$103.1b in H1 2026, although deal volume decreased, reflecting a trend towards larger, more selective investments.
