2020 was a prolific year for Singapore’s FinTech start-ups as FinTech investment reached US$346 million, representing 6.2% of all that was raised in Asia.
Singapore holds immense potential for FinTech to thrive backed up by its solid technology and innovation roots, sophisticated and educated citizens, strong financial background, unparalleled infrastructure as well as progressive, liberal and cohesive government regulations.
In 2021 and beyond, FinTech is bound to accelerate growth on account of digitalization of financial services primarily driven by Blockchain, AI and cryptocurrency.
- Market Overview
- Key Market Metrics
- Top Market Opportunities
- Market Drivers
- Market Restraints
- Technology Trends
- Regulatory Trends
- Other Key Market Trends
- Market Size and Forecast
- Market Outlook
- Technology Roadmap
- Competitive Landscape
- Key Market Players
- Strategic Conclusions
FinTech, short for Financial Technology includes a huge range of products, technologies and business models that are changing the face of financial services industries. It refers to everything from cashless payments, to crowd funding platforms, to robo advisors to virtual currencies. The global investment in the Fintech sector has added upto nearly $100 billion since 2010.
In 2020 alone, FinTech global investment surged upto to 20% and start-ups focusing on payments and lending technologies received majority of the funds. The traditional banking services which has long dominated the financial service scene is now being disrupted with the advent of FinTech players who are responding with smarter solutions to cater to the same financial needs of the customers.
FinTech is a digital forum where diverse players such as: traditional Financial Institutions, technology firms, start-ups, infrastructure operators, e-commerce as well as telecommunications firms compete to satisfy needs of the discerning customers. Even though in general FinTech represents financial products and services enabled by technology, it also represents a huge digital territory where the lines between Financial service and non-Financial service providers are blurred.
FinTech is a thriving industry in Singapore with an increasing number of companies seeking new opportunities to collaborate, connect and co-create. In 2020, as per Findexable’s Global Fintech Index, Singapore was ranked as the top Fintech city in Asia considering it is home to over 40% FinTech across South East Asia. Singapore’s Fintech industry was duly propagated back in 2017, when Singaporean FinTech start-ups investment amplified to US$229 million while the rest of the FinTech start-ups across Asia was dwindling.
This investment was primarily sourced by government subsidies, grants, angel investors, venture capital, corporate venture divisions as well as Singapore’s FinTech association. Additionally, Singapore hosts FinTech Festival every year to gather the global FinTech community to discuss the future of the sector which augments the country’s commitment to this sector.
Over the years, Singapore has built itself a reputation as the FinTech hub of the world. With GDP of US$52,960, Singapore has a ultra-high-speed fibre infrastructure along with mobile subscription penetration beyond 100% which are the key reasons for the development of Fintech in the country. Besides this, Singaporean government also has been a consistent supporter of the sector as this sector is a core part of the country mission to become a Smart Nation. This initiative was announced back in 2014 by Prime Minister Lee Hsien Loong to keep Singapore at the forefront of the digital transformation.
In light of its smart nation initiative, the Singaporean government has set up their regulatory structure such that FinTech industry could grow and prosper. For instance, the Monetary Authority of Singapore (MAS) has announced a $125 Million support package for the financial and FinTech sectors to deal with the immediate challenges from COVID-19.
MAS has also launched a $6 Million MAS-SFA-AMTD FinTech Solidarity Grant to help Singapore-based FinTechs sustain operations, retain staff, and offset POC costs. Besides this, MAS has also arranged FinTech and Innovation Group to transcend from digital payment structure from banks to telcos. The Singaporean government also offers grants and mentorships to start-ups, accelerators and incubators in the FinTech entities which include:
- Start Singapore Accelerator (for FinTech incubators and accelerators)
- Start-up Singapore Equity
- Start-up Singapore Founder
- Financial Sector Technology and Innovation (FSTI)