Singapore Leads The Way In Promoting Fintechs

It’s the government’s enthusiasm to promote innovation that makes a difference:

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Singapore can be easily described as the epicenter of the fintech revolution in the world. It is the emerging Silicon Valley for the fintechs. This has been spurred by the requirement of serious overhaul of the financial services sector, which has been, despite high level of technology induction, experiencing lack of solutions required to service the needs of the Millennium customers. Adding to this are the issues of security, regulatory curbs, haphazard use of proprietary systems and the lack of efficient integration with the emerging technology concepts like the cloud, machine learning, artificial intelligence, etc.

Unlike other countries, which have seen strides in technology, Singapore chose to invest considerable amounts in transforming its financial sector. This is mainly done by supporting and encouraging fintech startups and entrepreneurs. The country’s government and policy framers thought this transformation will not just benefit the firms that come out with innovative products, but the financial services sector in general. Just consider this - venture capital investment in the technology sector has increased from below $30 million in 2011 to well over $1 billion in 2013 and the tempo continues to be maintained.

TOTAL GOVERNMENT SUPPORT

One of the main reasons for the fintech revolution in Singapore is the fact that the government, while supporting the fintechs, is also funding startup entrepreneurs. The initiatives get funding from the Monetary Authority of Singapore by way of grants and interest free loans. The government is also working to improve the skills of junior college students and increase their exposure to fintech-related courses. MAS has said its intention is to create a society that spurs innovation in payments technology, that gives consumers maximum convenience and confidence in making payments.

FOCUS ON PAYMENT SYSTEMS