Singapore is the centre of the booming South East Asian fintech industry. Even though it is much smaller in size compared to its neighbours, the city-state has established itself into a formidable powerhouse, hosting nearly half of the fintech firms in ASEAN, with players having built competencies in all major fintech areas and playing the role of springboard to the region.
Some of the key opportunities include:
- Wealth management solutions: The Credit Suisse’s 2022 Global Wealth Report placed Singapore among the top 20 countires with the highest number of ultra-high net worth individuals. The country hosts around 700 family offices, while global and local banks continue to strengthen their wealth management operations here. This makes Singapore a key market for Swiss fintech firms with solutions targeted towards asset managers, private banks and family offices.
- Financing: Singapore is an ideal location to raise capital for start-up expansion. Swiss companies not only have the opportunity to raise funds in the city-state by working with Singaporean investors but can also rely on a network of Swiss players that that moved to the South East Asian country.
- Singapore as a Regional Hub: Swiss fintech companies also have the opportunity to capitalise on Singapore being a natural springboard to the larger South East Asian region.
- Sustainability: This represents one of the most promising growth areas for the fintech market in Singapore, with MAS pushing the sustainability agenda through a series of initiatives.
- Blockchain and DLT: Both Switzerland and Singapore are at the forefront of blockchain applications for fintech and are exploring the advantages of distributed ledger technology (DLT), opening up opportunities for collaboration.
- Cybersecurity: The digitalisation of financial services is paralleled by an increase in the potential vulnerability to cyberattacks, a trend that has been accelerated by the Covid-19 pandemic. Therefore, Swiss fintech companies have the opportunity to offer their cybersecurity solutions.
- Artificial Intelligence: Singapore is planning to grow the use of AI solutions with fintech applications and has developed the National Artificial Intelligence Strategy. Importantly, MAS launched the Global Veritas Challenge to promote the adoption of AI solutions in the financial sector.
