Financial technology- fintech- is a rising industry. The advance of the digital age brought with it the need to update traditional financial and banking activities, and thus the birth of the fintech industry.
With Singapore’s goal to ride the technological age, Fintech is one of the many sectors that benefited from it. For the past few years, the world has witnessed Singapore emerge as a centre of excellence for fintech startups. What makes Singapore a good ground for fintech companies to flourish? Here is an overview of the fintech industry in Singapore.
Stable Economy to Sustain External Investment
It is untenable that Singapore is one of the most advanced countries in terms of economy. Despite being so small in the geographic area, the country is one of the best places for work and business with a high standard of living. Additionally, it was able to develop its fintech industry and that attracts attention from various countries.
Asian countries are catching up with Europe as the fintech centre in the world, and Singapore leads that race. It is thanks to Singapore’s continuing development in its state policies, taxation, and processings that makes it very attractive to external investment. Here, investors have much less to worry about. And that is why Singapore’s economy continues to boom to sustain more investments.
Government actions and support has been crucial in providing fintech-friendly regulations to the companies in Singapore. The Monetary Authority of Singapore (MAS) was successful in establishing the Fintech Innovation Group. This group puts forward and mobilizes fintech initiatives.
Singapore’s funding for Singapore fintech startups reached US$ 229 million in 2017. Additionally, MAS has also allocated funds to support projects and encourage development and growth in the domestic startup ecosystem. The government also provides grants to organizations in the fintech sector.
FinTech Incubators and Accelerators
Incubators are organizations that offer startups funding. Additionally, they help them develop a business model, provide connections and a place to work. Accelerators, on the other hand, are organizations that seek companies that are further along the startup stage. Their purpose is to connect startups with inventors and influencers.
With the government’s support, more and more incubators and accelerators are rising to support fintech startups. Their payback is usually an equity stake in the startup companies they nurture. In exchange, they mentor startups with their expertise in fields like finance, business law, and marketing.
These grants provide additional funding, and mentorship to startups, accelerators, and incubators. Right now, there are a great number of incubators and accelerators based in Singapore. These include Startupbootcamp Fintech Singapore, InspirAsia Accelerator, and DBS’ HotSpot.
Events and Communities
As Singapore is considered the financial hub of the region, it is no surprise that fintech communities congregate here. One of them is the Singapore Fintech Association, a non-profit initiative that allows collaboration between the stakeholders of the fintech industry in Singapore. The goal of this organization is to make solutions for the members of the ecosystem.
Moreover, Singapore also holds events for fintech stakeholders. Two of the major events in fintech are the Singapore Fintech Festival and the Money 20/20. These events feature discussions, presentations, and startup events for fintech entrepreneurs and enthusiasts.
Invest in Singapore’s Fintech Industry
Are you interested in benefiting from the advancing fintech industry in Singapore? You can expand your fintech expertise, products, and services in Singapore. Incorporate in Singapore and take advantage of Singapore’s booming economy and opportunities. You can contact 3E Accounting today to get assistance and professional consult on your decision to have a registered company in Singapore .