The number of fintech companies employing artificial intelligence (AI) in Asia is on the rise and expected to reach 7,271 in 2025, accounting for 7 per cent of the local fintech industry, says a UnaFinancial study.
In comparison, the number of fintech firms employing AI was 1289 in 2015 (3.6 per cent of all fintech companies) and 6038 in 2023 (6.3 per cent).
“Compared to the COVID-19 pandemic peak, there has been some slowdown in the growth of new AI fintech companies in Asia. However, the market continues to expand, both with the introduction of new companies and the active adoption of AI by already existing players,” according to the analysts at UnaFinancial.
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In terms of funding, after hitting a low in 2023, Asian AI fintech companies are entering a stage of new interest from fintech investors. The share of funding received by these companies is projected to grow from US$60.4 billion in 2023 to US$62 billion in 2024 and US$65.5 billion in 2025.
Thus, the investment volumes in the sector are expected to increase 2.2x next year. If the global socio-economic situation stabilises, this could spark investor attention to the industry.
Among the Asian countries, India, China, Singapore, and Israel are emerging as the powerhouses of AI fintech in the region. India dominates the list of active Asian AI fintech companies (41.7 per cent), followed by China (12.2 per cent), Singapore (9.8 per cent), and Israel (9.6 per cent).
“India’s leadership is unsurprising given the country’s size, rapid fintech growth, and deep AI integration into financial practices, supported by the government. In China, the growth is driven by the large economy, while Singapore boasts the proactivity of local fintech businesses, which position the country as a regional fintech hub and trendsetter in Southeast Asia,” UnaFinancial’s analysts explained. “Meanwhile, Israel stands out for its high standard of living, which supports the balanced growth of the entire fintech ecosystem and a favourable environment for startups.”
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