Before, “Fintech” was a catchphrase for up-and-coming firms headlining the business news headlines. Fintech has since grown from a buzzword to a full-fledged industry in Singapore, providing thousands of jobs, propelling financial tech 2.0 innovations forward, and assisting in the digitalization growth of many Singapore-based businesses.
Is Fintech the new financial service norm?
Online banking is now the standard, and mobile wallets are available across the country, thanks to the e-commerce boom. The rising popularity of cryptocurrencies is also a sign that fintech isn’t just a passing fad, but rather a long-term innovation to the traditional financial ecosystem. Candidates in this sector are in such high demand that they frequently receive multiple job offers. Fintech companies are not only helping democratize financial services, but they are also creating jobs. Below are ways how fintech companies are improving user’s daily lives:
Fintech factors that improve our daily activities
1. Creating a Financial Ecosystem That Is Completely Digital
Fintech has made mobile banking on our smartphones the new normal by bringing financial services online. Money can be transferred to Singapore-registered banks or mobile wallets locally. Aspire, Wise, YouTrip, and Revolut are some of Singapore’s prominent neobanks.
As if that weren’t enough, fintech has made foreign transfers far cheaper, easier, and safer for digital citizens than they were five years ago. Wise, formerly Transferwise, is the most well-known local fintech firm for low-cost international transfers. Every month, Wise transfers £5 billion to its members, saving them £3 billion in bank costs.
2. Blockchain for Security Service Adaptation
Blockchain, the world’s premier software platform for digital assets, has contributed to the expansion of fintech. It is in charge of hundreds of millions of transactions all around the world. Blockchain is just a method for recording data, but the way the data is stored on the blockchain makes it difficult to hack or steal. Fintech, which deals with such sensitive data, would be unable to ensure data privacy to customers without the use of blockchain technology.
The Singaporean government is launching a S$8.9 million program to investigate and develop blockchain technology because it has become so vital to fintech. The Monetary Authority of Singapore (MAS) is also working with JP Morgan Technology to develop its own Bitcoin-like digital currencies based on blockchain.
3. Push to convert into a Smart Financial Center
Singapore aspires to be a world leader in fintech with its booming fintech landscape. Singapore is still a long way from being Silicon Valley, but it is making progress. The region is being molded into a “smart financial centre” that is innovative on two fronts: being favorable to and encouraging innovation, as well as promoting infrastructure and new technology.
The purpose of the smart financial centre vision is to turn the entire country into a hub by adopting a broad innovative growth mindset. MAS intends to simplify payments, encourage secure cloud computing, provide affordable online insurance, and facilitate the safe and secure digitalization of financial services.
4. Green Fintech Is Here to Stay
Singapore is encouraging the rise of green fintech as part of its effort to instill innovation in its culture. The word refers to funding environmentally friendly and green programs that help to safeguard the environment, promote sustainability, and combat climate change. Climate experts have been warning us that we need to act quickly to avert the “time bomb” of climate change, and one way fintech is helping to combat global warming is through funding meaningful activities.
As the Asia-Pacific region as a whole has committed to being more sustainable, Singapore hopes to lead the way in green fintech. Singapore is already the largest green finance centre in ASEAN, accounting for half of all green bonds and loans.
How to be a part of the Fintech momentum?
There are many ways to contribute to the fintech ecosystem, but first it is always best to have the basic understanding of what fintech really is. CFTE provides great fintech courses where you can chat with our CFTE’s customer support to guide you on which fintech path is best suited for you. You can check out the CFTE page to find out more about their self-paced flexible courses from Digital Payments to Open Banking and Artificial Intelligence in Finance. For Singaporean PR and residents, there are loads of subsidies and discounts 80-90% for your benefit, so just reach out to learning@cfte.education to find out more!
Conclusion
As Singapore presents itself as Asia’s top fintech environment, it is also emphasizing that the fintech sector in Singapore is about more than simply making money, it is also about creating a positive impact on the people it serves.
