Singapore continues to embrace fintechs
(4 July 2016 – Singapore) Singapore is rushing to reinvent itself as Asia's fintech, hub in a bid to to fend off a regulatory threat to its wealth management industry and boost economic growth.
State funding, light-touch regulation and a recent move to allow start-ups to test financial products in a controlled environment have put Singapore ahead of rival Hong Kong to be Asia's fintech hotspot.
Singapore's fintech drive comes as its role as an offshore private banking centre is under threat from a multi-billion-dollar money laundering scandal in neighbouring Malaysia, and as Indonesia chases undeclared money parked in the low-tax city state.
Following the UK’s referendum to leave the European Union, Singapore may see an increase in activity and business engagement from with 60,000 fintech firms currently operating in Britain.
"In the long term (this) makes Europe much less attractive as a place for entrepreneurs," Taveet Hintikus, CEO of money transfer firm TransferWise, told the World Economic Forum in China last week.
A KPMG report said Singapore has been more aggressive in pursuing fintech opportunities, while a fintech consultancy, tryb noted that the country has the fastest growth rate for new fintech firms opening across Asia.
The firm's co-founder, Marcus Gnirk said nearly all 210 fintech firms operating in Singapore have opened in the past two years.
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