Singapore’s Fintech Investments Jumped 300% in Q2

Singapore Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term association released a report in partnership with management consulting firm, Oliver Wayman which shows that the total financial technology investments jumped more than 300% in the second quarter of 2020.

The official report states that the fintech sector of the city-state attracted $278 million (S$371 million) during Q2, compared to just $68 million in the first quarter. More than 40% of South-east Asia’s fintech companies are based in Singapore, and its Government has allocated more than $200 million to grow the financial technology ecosystem in the country.

The overall funding in Asia’s fintech sector dropped significantly during the second quarter because of the Coronavirus Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term pandemic. The investments dropped to $2.4 billion in Q2, compared to $3.13 billion in Q1 as China and India reported a substantial dip in funding.

“Interestingly, in 2020, Singapore has demonstrated resilience amidst the COVID-19 pandemic. While the COVID-19 pandemic has resulted in a fall in overall FinTech funding in Asia (particularly in China and India), the funding landscape in Singapore has been less volatile. Despite an initial decline in funding, Singapore’s FinTech investments rebounded in the second quarter of 2020, with investors recognising the opportunities existing in Southeast Asia. This support for FinTechs in Singapore stands in contrast to other markets in the region, where many FinTechs, especially early-stage businesses, have struggled to cope with the impacts of the pandemic,” the report states.

Fintech Hub

Singapore showed outstanding growth in the fintech sector in the last 5 years. The total number of fintech companies jumped to 1,000 in 2020, compared to just 100 in 2015. The country now has nearly 10,000 employees related to the fintech sector, compared to around 1,100 in 2015.

“Singapore is increasingly becoming a hub that includes data centres, regional talent, and diversified sources of capital. We have seen meaningful acceleration on this, and despite the COVID-19 pandemic, global investors have been injecting funds into Singapore FinTechs, an indication of the strength of our ecosystem,” Pradyumna Agrawal, Director of Investment at Temasek, said in a statement.