Singapore's Fintech Push Bears Fruit

While other ASEAN countries have accelerated the development of their domestic fintech sector, Singapore continues to be the preferred base for fintech firms, with a more mature landscape and diversified funding.

Funding into ASEAN fintech firms has grown more than 30 times in the past five years, reaching a record $1.14 billion as of end September 2019, with those in Singapore receiving the largest share – 51 percent, according to the report «Fintech in ASEAN: From Start-up to Scale-up,» published on Tuesday.

Funding for Singapore-based firms was also the most evenly distributed in the region, with insurance technology, payments and personal finance attracting the most investment, said the report by United Overseas Bank (UOB), PwC and the Singapore Fintech Association (SFA).

Fintech Firms Confident

Fintech firms are also optimistic about the opportunities brought about by the impending arrival of digital banks in the region, with 65 percent of them beloving they can offer innovative solutions and to collaborate with them.

«The increasing penetration of mobile devices coupled with the capabilities of new innovative technologies have made fintech firms a key driver in this evolving ASEAN financial services landscape, providing an experience that is easier, faster and more convenient,» Wong Wanyi, fintech leader, PwC Singapore, said in the report.

Respondents to the survey were also positive about meeting their existing and future funding needs, and almost half of them confident of raising more than $10 million in their next funding round.

Talent Shortage

While the prospects for fintechs in the region are generally positive, a bottleneck to their growth and expansion is the lack of qualified candidates – 58 percent of firms said the lack of talent was inhibiting their regional expansion plans.