Global Investment Bank and Capital Trust Releases Latest Research on Investments in Fintech in Asia for 2021
HONG KONG / ACCESSWIRE / July 8, 2021 / Leading Hong Kong-based financial services, investments and capital trust company Global Investment Bank and Capital Trust today released its latest research report entitled “State of Global Investments into Asian Fintech: the Impact of COVID-19 and Prospects for 2021.”
The report details that although investing trends in Asian Fintech had been rising, the pandemic put a dent in money flows into the sector in 2020.
“Global Investment Bank and Capital Trust’s research reviewed investment flows in 2020 and found that investments were down significantly from 2019, dropping to a total of approximately USD12 billion,” said Global Investment Bank and Capital Trust’s Fintech research expert Kelly Chao.
Despite the decline, the report outlined that signs of recovery were seen in the last quarter of 2020 with significant pick-up in the Asia Pacific region which saw a total of USD$3.14 billion raised. “We expect this increase in fundraising activity to be carried forward into 2021 for the sector,” said Global Investment Bank and Capital Trust’s Chao.
Many of the Asia Pacific region’s well-funded Fintech companies are expected to go public in 2021 such as KakaoBank from South Korea. In South-East Asia, Gojek increased its investment into its payments arm ahead of an expected listing, while rival Grab is due to make a highly anticipated debut on the market in 2021.
Global Investment Bank and Capital Trust’s report also stated that South-East Asia is still expected to be one of the fastest growing regions in Fintech, attracting major global investment interest.
“Due to the very loose monetary policy currently we are seeing increased valuations across the board for tech companies. Therefore, we expect significant IPO activity well into 2021 as shareholders see an opportunity to list at rich valuations,” said Global Investment Bank and Capital Trust’s Chao.
Global Investment Bank and Capital Trust’s report also noted the growing maturity of the region’s Fintech sector especially in the digital banking space, which will continue to attract the bulk of global investment interest. Global Investment Bank and Capital Trust also noted a significant growth in Fintech sectors such as payments, blockchain, regtech, insurtech and wealth management.
In 2020, China’s Fintech space saw significant shifts in global investment fronts. Banking on global investor interest, China’s Fintech space saw a change towards reforming and strengthening traditional financial institutions’s capabilities.
“In China, after Fintech giants came under increased regulatory scrutiny, banks made investments into digital transformation in a big way. Therefore, we are seeing a move away from direct to consumer products for 2021,” said Global Investment Bank and Capital Trust’s Chao.
An emerging Chinese Fintech sector that is fast gaining traction is insurtech, which saw Shuidi, a crowdfunding platform which focuses on medical expenses, raising USD380 million.
Global Investment Bank and Capital Trust’s report also reiterated that while the pandemic did slow capital investment flows into the space, there are many signs that the sector remains robust and resilient. “Our position at Global Investment Bank and Capital Trust is that we believe that capital flows and investments into Fintech will rebound significantly in 2021,” said Chao.
“Especially in South-East Asia, where there are large populations that remain unbanked and underserved in terms of financial services, we fully expect that growth trends will resume, if not perhaps quite at the same pace as before COVID-19,” Global Investment Bank and Capital Trust’s research lead Chao concluded.
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SOURCE: Global Investment Bank and Capital Trust
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