New Delhi:

Investments in private financial technology (fintech) companies in Asia-Pacific grew 9.1 per cent to USD 1.4 billion in the second quarter of 2020 as compared to the first quarter, a report by S&P Global Market Intelligence said on Tuesday. The 'Q2 APAC Fintech Funding Report' said fintech investments in India declined 38 per cent to USD 339 million "as the government continued to scrutinise and clamp down on foreign investments.
Funding in China also fell from USD 205 million to USD 41 million as the country saw fresh outbreaks of COVID-19 cases, it added.

Fintech funding in Asia was predominantly led by Southeast Asia and Australia, with both regions drawing in USD 455 million and USD 371 million, roughly three-times and two-times the amount raised in the previous quarter, respectively, it said.

"Fintech investments in Asia were primarily driven by India in the last quarter, but investors appeared to have shifted their attention to Southeast Asia and Australia," S&P Global Market Intelligence Fintech Analyst Celeste Goh said.

Outlook for fundraising activities will largely remain the same as growing tension between China and India may continue to drive capital into Southeast Asia in the months ahead. Meanwhile, open banking developments in Australia may continue to spur i ..spur investors' interest in digital banks, Goh added.

The deal activity remained flat in the Asia-Pacific region, with 107 transactions recorded in both quarters.

The report said that across Southeast Asia, e-wallets were a big draw for investors with the top two e-wallet fund raises by Philippines' PayMaya and Myanmar's Wave Money accounting for 31 per cent of investments in the payments sector.

In Australia, digital-only banks continue to drive fintech funding in the region with Judo Bank, 86 400, and Xinja saw investments amounting to USD 176 million for the quarter, it added.