Due to the country’s modern infrastructure and strategic positioning, Singapore is considered the leading FinTech hub in Asia. Beyond these, several other reasons make Singapore the top destination for FinTech innovation.
The FinTech Industry is Thriving in Singapore
One reason is that the city-state has a start-up-centric ecosystem. The government has taken great efforts to support and push for digital innovation throughout the years. Because of this, many tech companies flock to Singapore. Besides the generous fundings, the government has also implemented policies that benefit start-ups and facilitate their growth for long-term success.
Unlike other countries, Singapore also has a progressive regulations approach. Since it is in the nature of the FinTech industry to be transformative, the economic environment in which it will thrive needs to be flexible and conducive to innovations.
In the past years, the state has initiated several projects to encourage entrepreneurs to delve into the industry. For instance, a regulatory sandbox was introduced in 2016 to allow freedom and experimentation for start-up FinTechs. This initiative provided a controlled environment for digital solutions to be tested and developed.
Another initiative was the launch of the API Exchange that allows financial institutions to incorporate FinTech innovations into their system. This platform became a stepping stone for the development of the tech industry in the country.
Along with the innovations in technology comes the development of a skilled workforce in Singapore. As part of the government initiative, Singapore plans to cultivate the growing talent pool to meet the evolving needs of the FinTech industry.
For these reasons, many entrepreneurs see the potential to enter this industry and pursue FinTech company incorporation.
FinTech Industry Offers Incredible Opportunities for Entrepreneurs
As Singapore continues to undergo digital transformation, the country offers advantageous opportunities to inspire innovative entrepreneurs to pursue company registration in Singapore and contribute to the development of the FinTech industry. These include:
- Digital payment system
Although Singapore has always encouraged financial institutions to adopt FinTech innovations in their business, the pandemic has accelerated this adoption significantly, involving businesses now.According to experts, 75% of businesses have adopted a digital payment scheme to enable their consumers to pay directly by using only their mobile phones. PayNow has become the country’s biggest digital payment system incorporated into several businesses, including Singtel, Grab Financial Group, and Liquid group. With this technology, businesses provide more payment options to engage with their customers. - Continued government support
For years, the industry’s leaders have recognised the importance of setting up a secure infrastructure that allows businesses to share data safely while complying with government regulations. Therefore, the government has created the Singapore Financial Data Exchange and Singapore Trade Data Exchange to support FinTech companies in this endeavour.The Singapore Financial Data Exchange (SGFinDEX) is an initiative by the Smart Nation and Digital Government Group and Monetary Authority of Singapore (MAS) to introduce the first public digital infrastructure in the world to use a centralised consent system and a national digital identity to empower individuals to consolidate financial information and make better monetary decisions. Overall, the goal of this initiative is to harness digital technology to improve every Singaporean’s financial well-being.
On the other hand, the Singapore Trade Data Exchange (SGTraDex) was created by the Singapore Together Alliance for Action to offer a safe and secure online platform that facilitates trustworthy data sharing between supply chain partners. Through this, the information flow is streamlined via a centralised data highway.Ultimately, these initiatives help create a safer and more secure digital environment for businesses to operate.
- Emerging technologies
What’s more, the FinTech industry is moving to a greener territory by promoting sustainability. Since 2019, MAS has been encouraging a sustainable financial approach with the launch of the Green Finance Action Plan that aims to make Singapore a leader in green finance.As this movement toward sustainability continues, the country is expecting to use FinTech as a force to create a more inclusive and sustainable economic environment. Now, entrepreneurs are encouraged to provide FinTech innovations that boost efficiency while reducing energy consumption. - FinTech community engagements
For more information on how to build a business in FinTech, the industry has also opened several engagement opportunities for interested entrepreneurs to participate in. Among them are the Singapore FinTech Festival 2021 and RegTech Summit. With the availability and accessibility of these engagement forums, the community plans to equip business owners with the information and skills they need to thrive in this industry.
Conclusion
FinTech remains the central driving point in transforming the country into a Smart Nation. Participating in this industry by hiring Singapore incorporation services for your new company formation will not only help you as an entrepreneur to succeed in the future but will also enable you to contribute to the country’s economic evolution.
