Data gathered by analytics group Refinitiv shows record amounts of cash being pumped into financial technology in the Southeast Asian markets by investors in 2021.
Figures released in November recorded over $3billion in FinTech investment across more than 80 deals in Singapore, equating to more than the combined total of both 2019 and 2020. Some end-of-year statistics for Singapore FinTech investment throughout 2021 can be seen in the embedded infographic.
One of the key drivers for investment in FinTech in Singapore and other countries in the area has been due to lockdowns during the pandemic, with consumers increasingly switching to the use of mobile payment apps and online banking.
With interests in the financial sector, Jerry Cole, Red Rose co-founder, is eagerly looking forward to seeing if this increased wave of FinTech investment continues throughout 2022 and beyond.
The Rise of Digital Banking
Digital banking has become increasingly popular among residents of Singapore, who have experienced many months over the past two years in lockdown, where online was the only option available.
Digital banking is therefore poised to become more efficient to meet consumer demand, resulting in increased investment across the sector – with industry experts such as Jeremy Cole feeling enthusiastic and excited about such trends.
At least four new licenses have been granted to non-bank firms operating in Singapore to offer financial services to consumers. More digital-only banks can be expected to begin operations in 2022, including a partnership venture between Singapore Telecommunications Ltd. and Grab Holdings Inc.
The PDF attachment looks at some of the top digital-only banks currently operating in Asia, according to data from 2021.
Digital Payments
Digital payments have also risen exponentially across Singapore over the past few years. Experts are now predicting that by 2024, e-wallets will be the preferred method of payment among Singapore consumers, accounting for an estimated 27% of all online purchase transactions. In 2020, e-wallets were the second-most popular choice for making online purchases, with credit cards as the top preference. This is according to data shared by the FIS 2021 Global Payments Report.
The short video attachment looks at how safe e-wallets are when it comes to protecting consumer data and funds.
BNPL, a type of short-term credit system allowing customers to pay for goods in instalments, is also booming, with incentives such as cashback and other rewards enticing customers to utilise these services.