Singapore and London came up tops as Fintech hubs based on a joint recent report issued by accounting bodies in the two countries.
Both Singapore and London have benefitted from having all the key elements that support fintech innovation in a single location, placing them as leading fintech hubs according to a joint report issued by The Institute of Chartered Accountants in England and Wales (ICAEW) and the Institute of Singapore Chartered Accountants (ISCA).
«For countries aspiring to be a centre of fintech innovation and reap the potential benefits of the industry, it is important to learn from successful fintech hubs such as Singapore and London and for governments to invest funds or programmes to support the growth of the sector,» said Kirstin Gillon, the report's author.
Five Elements
In the report, five key elements were identified to underpin a fintech hub, namely markets, talent, capital, regulation and government support. Three of these elements – markets, talent and capital – are the responsibility of individual fintech companies, with the other two provided the foundations for success.
«Fintech is most effective when innovators, investors and regulators can interact, build networks and learn from each other. Exploring successful hubs where these elements are working in harmony is a good way to learn about what drives successful fintech innovation,» said Mark Billington, regional director of ICAEW in South-East Asia.
Fintech Boom
The fintech sector has enjoyed fast-growing and tremendous investment globally, with global fintech investment almost doubling to US$38.9bn between 2014 and 2017. The efficiency, convenience and reach of financial services has been significantly enhanced by the development of the fintech industry,
While the five core elements of innovation are common, there are also many differences between fintech markets, the bodies noted. Hence, businesses, regulators and governments need to adapt and tailor their fintech strategies to meet specific needs of the country.
