APAC fintech investment falls to $4.6b in H1 2026

Fintech investment across the Asia-Pacific region fell to $4.6 billion across 350 deals in the first half of 2026, down from $7.1 billion across 426 deals in the second half of 2025, with deal value particularly weak in Q1 at $1.2 billion before rebounding to $3.4 billion in Q2, KPMG’s regional analysis in the Pulse of Fintech H1'26 report shows. Venture capital still powered several of the region’s largest rounds: India’s CRED raised $900 million, Singapore-based Airwallex secured $320 million, Indian lender KreditBee attracted $280 million, and Australian crypto exchange Synthetix raised $150 million.

"Investors continued to reassess late-stage valuations whilst also dealing with regulatory changes and geopolitical risks," KPMG said. The report adds that "economic uncertainty and costs linked to the conflict in the Middle East and the extended closure of the Strait of Hormuz also contributed to a greater focus on cost control."

Regional breakdown and sector dynamics

India captured the largest share of fintech funding in H1 2026, drawing $2.0 billion across 101 deals, up from $1.8 billion across 102 deals in the previous six months. South Korea ranked second with $899 million invested across 31 deals, followed by Singapore with $499 million across 53 deals. Australia recorded $456 million across 28 deals, Japan $204.5 million across 37 deals, and China $149 million across 33 deals.

KPMG attributed China’s relatively low conventional investment levels partly to the maturity of its payments, consumer finance and digital lending sectors. The report also noted that banks, insurers and large technology platforms have increasingly brought fintech capabilities in-house, and that partnerships, joint research and development, and other arrangements are substituting for traditional venture capital, private equity and M&A activity in some markets.

Market headwinds and policy moves

• Australia: Investor caution rose as the Reserve Bank of Australia raised interest rates three times during the reporting period. The federal government’s 2026 Budget announcement of changes to capital gains tax further weighed on investor sentiment, with KPMG pointing to heightened cost control among businesses.
• Hong Kong: Authorities continued to expand fintech and digital-asset policy. In February the Hong Kong Monetary Authority released its Fintech Promotion Blueprint covering AI, distributed ledger technology, high-performance computing, data and cyber resilience, and in April it issued its first two stablecoin issuer licences.
• China: KPMG expects further consolidation in payments, credit and wealth management as larger fintech companies increasingly act as buyers rather than targets for fresh capital.

Outlook

For the second half of 2026, KPMG expects India to remain the dominant fintech investment destination in APAC while demand for AI-related regulatory and workflow tools should rise in Australia and other slower-growing markets. The report also anticipates ongoing consolidation in China’s payments, credit and wealth management segments, and continued policy development in Hong Kong around AI, stablecoins and tokenisation as the city seeks to expand institutional digital-asset use.