Singapore's fintech investments rebounded in the second quarter of 2020, with investors recognizing the opportunities existing in Southeast Asia.
Despite an initial decline in funding (-49 percent in Q1 2020 vs. Q4 2019), fintech investments in Singapore grew more than fourfold to $278 million in the second quarter of 2020, compared to the quarter before, according to the «Singapore FinTech Landscape 2020 and Beyond» report, released on Tuesday.
Over the past five years, the number of fintechs in the city-state has grown from less than 100 to over 1,000, with the number of employees growing from about 1,100 to more than 10,000, the report said.
The report, published by the Singapore Fintech Association (SFA) and Oliver Wyman, highlights Singapore’s evolution as a fintech innovation center over the past five years and forecasts the trends expected in the next five years.
Fintech Innovation Center
Singapore is Asia’s highest-ranking fintech city, according to Findexable’s «Global FinTech Index 2020,» with more than 40 percent of Southeast Asian fintech's based in the republic.
The key enablers that have contributed to Singapore’s success include innovation-focused investors, a close-knit network of corporates, banks and partners, as well as progressive government and industry associations, the report said.
Staying Competitive
Looking ahead, the report recommended several themes to ensure the republic remains attractive for fintech firms: continue to keep regulation current, further open up financial services infrastructure, and work towards harmonizing standards.
