Financial technology (FinTech) is an emerging industry. Even though traditional financial services still dominate most markets in the world, players in technology are starting to create niche solutions in the financial industry. And the influence of technology in that sector created the FinTech industry. As such, demand for cyber-security, mobile payments, and market infrastructure is rising.
In response to this demand, Singapore is equipping itself to the frontline in the FinTech industry. And for the last few years, the city-state has taken initiative and emerged as a center of excellence for FinTech startups.
This article provides an overview of the FinTech industry in Singapore. Here, we expound on why Singapore invests funds and efforts in this sector. Further, we outline how Singapore supports the rise of this industry.
What Is FinTech?
FinTech is an umbrella term for innovative and disruptive technologies and startups. This is the term for the technologies and startups that influence the financial sector. It pushes the traditional finance activities to become safer, faster, and more efficient.
Banking, payments, insurance, investments, savings lending, remittance, and trading are changing because of FinTech. Further, new niches are rising in response to the increased use of technology and the internet. This includes mobile cryptocurrency, artificial intelligence (AI), and blockchain.
Why is Singapore Strengthening the FinTech Industry in Singapore?
As the world enters the digital age, it’s becoming more prominent that innovation is the future. Singapore recognizes this and thus takes action to strengthen the FinTech industry in Singapore. FinTech promises potential and massive economic rewards. So the government funds and supports the industry’s growth.
Moreover, strengthening the FinTech industry in Singapore improves the monetary transactions in the market. Ordering food, buying new clothes, sending funds, and getting loans- FinTech transforms almost every market activity there is. In turn, it improves the ease and convenience of these activities. It removes geographical constraints and reduces processing time.
Examples of the many FinTech products and services that are changing the traditional finance activities include the following:
- PayNow- a peer-to-peer fund transfer service that allows customers to make digital financial transactions. These transactions include getting funds for their e-wallet accounts even if it comes from a different bank account.
- StashAway- a local FinTech startup that provides a digital platform and robo-advisers (AI) to provide financial investment advice to different customers.
- AsiaCollect- a professional debt collection company that uses a technology that provides credit management services (CMS). That is in addition to their debt collection digital solutions.
Government Actions to Support FinTech in Singapore
As of the moment, there is no existing regulatory regime that governs the FinTech industry in Singapore. However, the Monetary Authority of Singapore (MAS) is the chief regulatory authority that carries out and acts on specific FinTech activities. MAS plays a crucial role in encouraging the growth and development of the FinTech ecosystem in Singapore.
MAS has led to the emergence of more than 30 FinTech research centers and innovation labs. Further, MAS has launched at least 400 locally-based FinTech organizations. This is in addition to their role of ensuring that FinTech enterprises comply with existing laws on trade and finance.
Moreover, government initiatives like the Singapore new tech pass also support to catch in rich tech talents and enterprises from all over the world. With the city-state’s need to increase tech talents who will make disruptive innovations, the Tech.Pass visa is sure to attract the right talents in Singapore.
Join the FinTech Industry in Singapore
FinTech is not a new industry. However, it is only starting to take over major economic activities. Do you want to take advantage of the emerging demand for FinTech products and services? Start your own FinTech company in Singapore! Formation of new company is now much easier especially with the help of our expert teams. Contact 3E Accounting today to know more about our services.