What is the state of the FinTech Industry in Singapore? | by Cheong Wei Si | Nov, 2020


Well, it does seem to be there was regular employment progress amongst the 437 FinTech-Certified companies in our dataset. In truth, the employment progress is positively correlated with the FinTech non-public funding flows into Singapore, which picked up since 2015. However, the progress fee appears to have moderated in 2020 attributable to the Covid-19 recession.

If we take a look at the employment progress sorted by the employees measurement of every agency, we discover that in normal, it has been supported by the improve in micro companies and start-ups (i.e. these companies using lower than 50 staff). Perhaps as an encouraging signal, in the latter years (2018–2019), Singapore has been capable of appeal to bigger FinTech gamers, albeit just a few, which employed greater than 200 staff (pink bars).

Firm Formation
Here, we need to rely the quantity of FinTech-Certified companies integrated in a given 12 months. Similarly, we take a look at the 2011–2020 interval.

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Since 2013, the quantity of FinTech-Certified companies integrated in Singapore has been on an uptrend. With the file USD 861 million of FinTech non-public funding pouring into Singapore in 2019, it is not stunning to watch the speedy progress in the quantity of companies in that 12 months. Although we’re about 2 months to the finish of 2020, it is fairly clear how the Covid-19 recession has adversely impacted the FinTech trade.

Business Model and Type of Financial Service
Business mannequin right here refers as to whether a specific agency is a “B2B”, a “B2C” or a “B2B2C”. As for the kind of monetary service, it may be fairly quite a few, starting from Payments, Lending, Brokerages, Remittance and so forth. We can derive these insights on the nature of the FinTech-Certified companies from the knowledge after some cleansing.

Among the 437 FinTech-Certified companies in our dataset, about 79% of the companies serve no less than the B2B section. As for the kind of monetary service offered by a FinTech agency, actions reminiscent of “AI and machine learning”, “Payments”, “Platform”, “Blockchain” and “Lending” had been amongst the hottest.

This discovering is properly supported by Accenture (2019), which acknowledged that:

“Investments in payments startups and those in lending took the bulk of fintech fundraising, accounting for 34% and 20% of the total, respectively, while insurtechs raked in 17%.”

Singapore’s FinTech trade is positively rising and the future does look thrilling. With the exception of 2020, agency formation and employment progress had been clearly on an uptrend over the previous 5 years, aided by non-public FinTech funding and accommodative regulation. I might count on that the Covid-19 recession will hit FinTech start-ups particularly arduous and fairly just a few could even have to shut down. But as each disaster is a possibility, the survivors are more likely to come out even stronger.

Thank you very a lot for studying!


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