Overview
FinTech solutions pave the way for an effective financial center; MAS plays key role in developing Singapore’s FinTech journey
Being Singapore’s central bank and integrated financial regulator, the Monetary Authority of Singapore (MAS) collaborates with the financial industry to develop Singapore into an effective financial center. Singapore’s financial tech (FinTech) journey began in 2015, with its operations revolving around innovation, inclusion and inspiration aimed at improving the lives of Singaporeans and developing a productive economy. Singapore plays a global role in two areas - foreign exchange and asset management - and aims to cement its role as a leading Asian hub in fund management and residency.
MAS provides a Financial Services Industry Transformation Map (ITM), a strategic plan regarding the future growth and updates of the industry. The financial services sector is a vital contributor to Singapore’s economy, accounting for approximately 12% of GDP, and provides jobs for around 154,000 individuals. The ITM reports an expected financial services GDP growth of 4.3% per annum over the midterm, of which over half, or 2.4%, of the growth is a result of productivity. At the end of 2020, Singapore was reported to comprise over 40% of Southeast Asia’s FinTech companies, and was ranked 4th in Findexable's Global Fintech Index and was Asia's highest-ranked FinTech city.
Singapore’s FinTech ecosystem has five sectors: banking, insurance, capital markets, payments and green FinTech. FinTech innovation utilizes technologies such as artificial intelligence, blockchain/distributed ledger technology (DLT), APIs, cloud, cyber-security, digital ID & e-KYC, IP protection and RegTech. Singapore has over 40 innovation laboratories as well as over 1,000 FinTech firms across the country.
MAS backs financial and insurance sectors, leveraged by innovation to support growth of financial institutions
In 1970, the Singapore government passed the Monetary Authority of Singapore Act making MAS the leading authority for regulating the financial services sector. In 1977, MAS was delegated to handle the regulations of the insurance industry.
Enterprises and entrepreneurship play a vital role in Singapore’s economy by creating new jobs and incomes, and bolstering industries. As youth are attracted to entrepreneurship due to the involvement of new technologies, the financial services sector is driven to support entrepreneurship, allowing MAS to set up simplified regulations in enabling venture capitalist and private equity managers. MAS also intends to provide revised regulations for financial institutions in serving SMEs (small and medium enterprises).
Over the past decade, the digital revolution in relation to the financial sector has transformed the way financial work is completed, contributing to Singapore’s growth as a ‘smart’ nation. Since innovation is a key component of the financial sector, Singapore takes a competition and collaboration approach. To support this, in 2015, MAS contributed SGD 225 million towards the Financial Sector Technology & Innovation scheme, allowing over 20 global financial institutions to establish many research centers and innovation laboratories. This has led to the growth of over 400 FinTech start-ups across Singapore, making them a vital segment of the industry ecosystem. MAS also suspends selective regulations to aid in the experimentation of untested inventions, and issues legal documentation to regulate and supervise financial institutions.
Key Trends
MAS’ initiatives within the financial sector lead to a rise in local and international partnerships, collaborations and initiatives, contributing to economic growth
MAS conducts consistent assessments regarding the risks and vulnerabilities of developments in Singapore’s economy as well as globally. From 2016 to 2017, MAS’ initiatives towards the financial sector were followed by noticeable major enforcement activities to uphold Singapore as a reputed center recognised for its integrity. It also oversaw partnerships with the Commercial Affairs Department (CAD) and the Attorney-General’s Chambers (AGC) for investigating transactions related to the 1MDB (1Malaysia Development Berhad) scandal, carried out by certain financial institutions. MAS also collaborated with global regulators to uncover an international ploy related to money laundering.
From 2018 to 2019 global financial stability risks were elevated with high debt levels, especially in EMEs (emerging market economies), while Singapore’s banking system, corporate and household fundamentals remained resilient, maintaining consistent observance towards the uncertainties of the external environment. Year 2018 brought about moderate indicators in price growth and transaction activities, reporting a gradual decline in private residential property prices of 0.7%.
As a result, MAS has engaged in strategic collaborations to serve the FinTech sector, such as the ASEAN Financial Innovation Network (AFIN) formed with the World Bank Group’s IFC and the ASEAN Bankers Association, 36 FinTech cooperation agreements (CAs) signed with international partners and the Global Financial Innovation Network (GFIN) - a collaboration with international financial regulators and related organizations. This also includes a partnership with the UNCDF (United Nations Capital Development Fund) for its SHIFT (Shaping Inclusive Finance Transformations) programme and the International Technology Advisory Panel of financial institutions, FinTech business leaders, venture capitalists, and thought leaders in technology and innovation.
COVID-19 both affects and facilitates the FinTech industry; MAS addresses financial demands of people
The initial shock impact of the COVID-19 pandemic and the responses made were noted by MAS and the Economic Policy Group in a study - Special Feature B. The pandemic resulted in aggregate supply shocks, which caused labor reductions, workplace closures and trade disruptions that resulted in reduced supply of imported intermediate inputs, increased import prices and caused a sudden inflation in prices.
The pandemic also resulted in aggregate demand shocks, causing trade and mobility disruptions, distancing restrictions as well as uncertainty over the course of the pandemic and its impact on the future income-earning capacity of firms and households. A fiscal policy response was used in many AEs (advanced economies) and EMs (emerging markets). Additionally, fiscal support was provided to counter the effects of a global economic recession.
Singapore also saw the COVID-19 pandemic as a facilitator for adopting financial technologies, when promoting demand for virtual banking experiences, digital payment capabilities and BNPL (buy now, pay later) arrangements. Year 2020 noted a 216% year-over-year (YoY) rise in customer sign-ups for DBS’ digibank mobile app, while FICO, a global analytics software firm, reported in its research that 68% of Singaporean consumers prefer using digital channels when dealing with banks to address their financial demands. In 2022, there was a notable increase in online shopping, as well as in digital payment solutions from cashless payments at brick-and-mortar stores for real-time payments. E-wallets also became the second most popular payment solution for e-commerce purchases.
Key Statistics
- In 2017, the expected amount in terms of Asia’s infrastructure needs was approximately USD 1.7 trillion per year, which was more than what the government and bank financing could offer. Therefore, MAS intended to collaborate with multilateral development banks to enhance the bankins aspects of Asian infrastructure projects.
- There was a 19% YoY increase in FinTech investments for H1 2020.
- As of 2020, Singapore was rated the 4th top Asian ecosystem by Startup Genome's Global Top 20 FinTech Ranking.
- The first Singapore FinTech Festival was launched in November 2016 to reflect Singapore’s evolution as a FinTech hub.
- In 2018, the Singapore government increased the ABSD (Additional Buyer’s Stamp Duty) and tightened the LTV (loan-to-value) ratio to control the property market cycle.
- In 2022, Fintech News Singapore and Alibaba Cloud reported that PayNow, a Singaporean instant electronic payment service, saw a spike in its digital transactions and payments.
Top Singapore MNCs in Fintech Sector
INTUIT SINGAPORE PTE. LIMITED
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ADYEN SINGAPORE PTE. LTD.
Incorporated in 2012, Adyen Singapore offers a unified platform for accepting payments from anywhere in the world via any sales channel. Globally, Adyen – headquartered in the Netherlands – is the preferred payments platform, offering a contemporary end-to-end infrastructure that connects directly to Visa, Mastercard, and the preferred payment methods of consumers worldwide. Adyen provides frictionless payments across all platforms, including online, mobile, and in-store. Adyen endorses customers such as Facebook, Uber, Spotify, Casper, Bonobos, and L'Oréal from offices throughout the world. It has a unified platform for accepting payments, protecting income, and managing finances. Adyen offers its services across continents with 26 offices, employing over 2,000 people representing 110 nationalities.
PAYPAL PTE. LTD.
The PayPal office in Singapore was established in 2005. By utilizing technology, it facilitates financial services and commerce. The company offers solutions for online transactions and payment processing, both domestically and globally. The organization also provides online invoicing, refunds, and business solutions. PayPal has been at the forefront of the digital payment revolution. In 2002, PayPal – which has customers all over the world – became eBay’s official payment service. PayPal also provides worldwide payment flexibility across platforms and merchants. The company drives all aspects of digital checkout, including online, mobile, and in-store.
FISERV APAC PTE. LTD.
Fiserv is a global provider of financial services technology. In 1990, it set up its regional headquarters in Singapore with the incorporation of Fiserv APAC. Fiserv’s products connect financial institutions, large and small enterprises, and consumers, locally and globally, reliably and securely, behind the scenes, through millions of transactions. The company provides superior financial services technology and payment solutions to clients in order to help them optimize operations and stay up to date with changing consumer demands. Fiserv also provides comprehensive terminal, online, and omnichannel payment solutions for companies of all sizes, ranging from huge corporations to small and medium-sized businesses.
STRIPE PAYMENTS SINGAPORE PTE. LTD.
Established in 2015, Stripe Payments Singapore offers a variety of integrated solutions that simplify PCI compliance without sacrificing the checkout experience. Stripe provides a global payment system that accepts over 135 currencies, and offers transparent pricing and savings to high-volume merchants. From e-commerce storefronts to subscription businesses, platforms, and marketplaces, Stripe Payments offers a complete stack for all payment needs across channels. The company’s solutions and services include: E-commerce, SaaS, Marketplaces, Embedded Finance, Platforms, Creator Economy, Crypto and Global Businesses.
WISE ASIA-PACIFIC PTE. LTD.
Established in 2011, Wise Asia-Pacific is a technology firm that is developing the most efficient way to transmit money around the world. People and corporations can use the Wise account to hold over 50 currencies, transfer money between countries, and spend money abroad. Every TransferWise payment is sent at the current, mid-market exchange rate. Wise Asia-Pacific added a multi-currency account, a debit card, and a business account, assisting people in managing their money more inexpensively, swiftly, and transparently on a global scale. Wise Asia-Pacific collaborates with banks and firms such as Monzo, Bolt, and GoCardless, to provide better international banking to their clients.
CHECKOUT APAC PTE. LTD.
Incorporated in 2010, Checkout APAC assists businesses in accepting payments all around the world. Businesses rely on its proprietary payment technology for faster processing, greater dependability, and complete access to configurable data streams. Checkout APAC accepts Visa, Mastercard, American Express, and all major international cards, as well as popular alternative and local payment options, and processes more than 150 currencies. Checkout APAC payment experts collaborate with worldwide companies such as TransferWise, Deliveroo, EasyGroup, and Samsung, to optimize payments using real-time data. Through a single API integration, Checkout APAC acts as a gateway, processor, acquirer, and fraud manager.
ALIPAY SINGAPORE HOLDING PTE. LTD.
Established in 2016, Alipay Singapore Holding provides payment services for Alibaba Group's marketplaces. Alipay offers safe, dependable, and convenient online and mobile payment services. By the end of 2016, Alipay had 450 million users. Alipay is now accepting in-store payments both within and outside of China. Currently, Alipay works with over 200 financial institutions and has created online platforms to meet the financial needs of small enterprises and individuals, including payments, loans, third-party insurance and wealth management. The company has created Quick Pay, barcode payment, smile-to-pay, and QR code payment solutions to meet the digital payment needs of sectors such as commercial operations, public services and transportation.
REVOLUT TECHNOLOGIES SINGAPORE PTE. LTD.
Incorporated in 2017, Revolut Technologies Singapore offers money transfer and exchange services. Customers worldwide use Revolut's products to conduct over 100 million transactions per month. The company provides businesses with the resources they require to start, run and scale. Headquartered in the UK, Revolut offers financial services, debit cards and virtual cards, among other services. Revolut also provides options such as foreign money transfers with no hidden fees. The Monetary Authority of Singapore (MAS) has regulated Revolut Technologies Singapore as a major payment institution to carry on the business of providing account issuance, domestic money transfer, cross-border money transfer and e-money issuance services.
COINBASE SINGAPORE PTE. LTD.
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Top Singapore Large Local Enterprises in Fintech Sector
NIUM PTE. LTD.
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IFAST CORPORATION LTD.
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SINGAPORE LIFE LTD.
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ECOMMERCE ENABLERS PTE. LTD.
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ADVANCE INTELLIGENCE PTE. LTD.
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CODA PAYMENTS PTE. LTD.
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APAYLATER FINANCIALS PTE. LTD.
Founded in 2019, Atome is a payment solutions provider offered by APaylater Financials. The company provides a payment platform for online and offline businesses in fashion, beauty, lifestyle, fitness and homeware, as well as the ability to track and manage monthly expenditures. In Asia, Atome is a leading ‘purchase now, pay later’ brand. The company’s service is provided in nine Southeast Asian and Greater China markets. Atome is a subsidiary of Advance Intelligence Group, a Singapore-based Series-D AI-driven technology business with operations in South and Southeast Asia, Latin America and Greater China. Atome works with the popular e-commerce platforms and payment gateways.
BOLTTECH DIGITAL BROKERAGE SINGAPORE PTE. LTD.
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Top Singapore SMEs in Fintech Sector
MATCHMOVE PAY PTE. LTD.
Established in 2009, MatchMove Pay introduced an eWallet that allows clients to shop online with prepaid cards. MatchMove provides an online account that allows customers to apply for and manage various virtual cards. The company offers a range of services for safely and legally moving money locally and globally. MatchMove provides fully managed services as well as developer-friendly features for connecting customers, merchants and financial institutions. MatchMove is licensed by the Singapore Monetary Authority, and authorized by leading card networks to issue virtual and physical cards directly to users or through partner institutions. MatchMove operates out of India, Indonesia, Vietnam and the Philippines.
MOOLAHSENSE PRIVATE LIMITED
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FUNDING SOCIETIES PTE. LTD.
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M-DAQ PTE. LTD.
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FUNDED HERE PTE. LTD.
FundedHere, licensed by the Monetary Authority of Singapore (MAS), is an equity and debt crowdfunding website. Incorporated in 2016, the platform has raised about $20 million through 30 initiatives. The startup ecosystem at FundedHere includes over 1,800 investors, more than 20 partners and over 40 mentors. Its goal is to connect investors with Asian companies. FundedHere handles and links three types of stakeholders: startups, publicly traded companies and investors. The company offers a platform for listed companies to run short-term bonds, as well as an opportunity for interested investors to obtain access to new investment products for diversification purposes.
INVOICE INTERCHANGE PTE. LTD.
Incorporated in 2012, Invoice Interchange is an online invoice financing marketplace that offers simple, dependable, working capital solutions to help businesses thrive. Invoice Interchange provides a simple and adaptable online invoice financing solution to assist its clients to obtain working cash to support their expansion. The company rewards referrals with a commission. Invoice Interchange allows import and export enterprises to draw down on invoices recorded in the NTP account. Online and automated invoice financing from Invoice Interchange enables businesses to easily access money in pending invoices and enhance their cash flows.
INCOMLEND PTE. LTD.
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SPARK SYSTEMS PTE. LTD.
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360F (SINGAPORE) PTE. LTD.
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TRIPLE A TECHNOLOGIES PTE. LTD.
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