Whilst we are seeing the fintech investment market correcting globally, Singapore is holding its position well.” said Anton Ruddenklau, Global Head of Fintech, KPMG International. In this article, Singapore Company formation will provide a general overview about Fintech companies in Singapore.
Fintech companies in Singapore at the glance
General
The digital revolution has sparked an unprecedented surge in investment, including venture capital, in digital assets, payments, and the fintech sector as a whole. By the conclusion of Q3 2021, global funding for fintech reached an impressive $94.7 billion, almost twice the total for the entire year of 2020.
Asia, in particular, has emerged as a thriving hub for fintech deals, hitting a record high of 307 deals valued at $5.9 billion during Q3 2021. The region has witnessed a continuous increase in quarterly deals since Q2 2020 and funding growth since Q3 2020. Notably, the rise of fintech has been associated with the creation of 200 new unicorns in the first three quarters of 2021.
About Singapore,
In insurtech (a field belonging to fintech), In 2022, the insurtech sector witnessed a drop in global investment, hitting a seven-year low of US$7.1 billion. This decline may be attributed to some investor pullback, possibly influenced by the post-IPO performance challenges faced by several insurtechs that had gone public in recent years. Notably, Singapore-based Bolttech raised $300 million in venture capital during this period. During 2022, the wealthtech (a field belonging to fintech) sector experienced robust global investment, attracting over $1.2 billion in total funding. Although this figure marked a decline from the peak investment of $2 billion seen in 2021, notable transactions during the year included the $323 million acquisition of UK-based Pollen Street Capital and a $300 million raise by Singapore-based crypto firm Amber.
Fintech regulation in Singapore must be considered
Fintech enterprises are subject to regulation in Singapore, with their specific activities determining which laws apply to them. Depending on their operations, fintech businesses may fall under the jurisdiction of the Securities and Futures Act, Payment Services Act, or the Financial Advisers Act. Additionally, these companies are also regulated under Singaporean law to address concerns related to money laundering and the financing of terrorism.
Ensuring compliance with anti-money laundering and countering the financing of terrorism regulations.
Singapore has issued the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) guidelines to combat money laundering and terrorism financing. These guidelines apply to financial services, including fintech businesses. To ensure compliance with the AML/CFT guidelines, fintech companies must actively:
- Assess and mitigate the risks of money laundering (ML) and terrorist financing (TF).
- Conduct customer due diligence (CDD) and know your customer (KYC) procedures.
- Conduct enhanced customer due diligence when necessary (EDD).
- Conduct regular account reviews.
- Monitor and report any suspicious transactions.
Achieving compliance with the Personal Data Protection Act.
Fintech companies that collect and use data must actively adhere to eight obligations under the Personal Data Protection Act (PDPA):
- They must obtain consent, define the purpose of data usage, and notify individuals accordingly.
- They must enable access to and correction of personal data when requested.
- They must verify and ensure the accuracy of the collected personal data.
- They must take measures to protect the personal data from unauthorized access.
- They must adhere to limitations on data retention.
- They must comply with restrictions on transferring personal data to other parties.
- They must establish policies promoting openness in their data handling practices.
- They must respect “do not call” provisions for marketing purposes.
Singapore based fintech companies
The Lion City is home to a diverse array of homegrown fintech companies that have gained recognition on both regional and global stages. From early-stage startups to well-established unicorns, these firms are making significant strides in reshaping the financial industry.Singapore’s fintech sector is witnessing rapid growth, presenting numerous opportunities for skilled workers. The top eight fintech companies in Singapore offer competitive compensation and attractive working environments. Here’s a glimpse into each company:
- Grab: A transportation-to-financial services firm, Grab went public in 2021 with a valuation of $39.6 billion. While market cap has decreased, Grab remains a Decacorn and offers competitive salaries to its employees.
- Wise: Though headquartered in London, Wise is among Singapore’s best places to work. Positive reviews highlight a good working culture and excellent compensation.
- Airwallex: This Hong Kong-based B2B fintech unicorn is expanding its Singapore office rapidly, offering an exceptional work environment and financially rewarding packages.
- Nium: Another B2B fintech unicorn, Nium, has a high recommendation rate among employees, and it pays its engineers handsomely.
- OKX: Specializing in crypto, OKX offers unmatched compensation for quants, making it an appealing choice for those interested in the crypto industry.
- Blockchain.com: A crypto-focused firm with a more autonomous work approach, Blockchain.com receives mixed reviews but offers competitive salaries.
- XanPool: This software solutions provider offers a close-knit, young, and fast-moving work culture, making it an attractive option for those seeking a smaller fintech environment.
- Pace: Operating in the BNPL (Buy Now Pay Later) sector, Pace provides a collaborative and supportive work culture with leadership positions available.
Singapore’s fintech industry continues to grow, providing abundant opportunities for fintech professionals seeking both rewarding compensation and a vibrant work environment.
Singapore sustainable finance: a green hub
Technology and sustainability are the primary forces influencing the future of financial services. As a result, MAS (Monetary Authority of Singapore) has been actively advocating for the development of FinTech and Green Finance. The FinTech journey commenced in 2015, and Singapore is now widely recognized as a leading global FinTech hub.With growing global awareness about environmental issues, sustainable finance has become a crucial aspect of the fintech landscape in Singapore. The city-state is actively promoting green fintech solutions to address climate-related challenges and foster a more sustainable economy.Singapore has witnessed a surge in green fintech startups that focus on sustainable investments, carbon offsetting, and climate risk assessment. Financial institutions in Singapore are also integrating Environmental, Social, and Governance (ESG) factors into their decision-making processes to support environmentally responsible initiatives.
Conclusion
As the fintech industry continues to evolve, Singapore remains at the forefront of innovation. With a progressive regulatory landscape, a vibrant fintech ecosystem, and a growing focus on sustainable finance, the Lion City is well-positioned to lead the way in shaping the future of global finance. Whether you’re a fintech enthusiast, an investor, or a consumer, keeping an eye on Singapore’s fintech developments promises to be an exciting journey into the world of cutting-edge financial technology.
