SFA president charts growth of fintech ecosystem in Singapore, CIOSEA News, ETCIO SEA

by James · April 2, 2023

Shadab Taiyabi, President of the Singapore Fintech Association, at the FSI Conclave 2023

The Southeast Asian digital economy could potentially reach 1 trillion Singapore dollar GMV by 2030, and Singapore continues to serve as a global hub and base of access to the rest of ASEAN. How has the development of fintech affected this growth? What is its role and contribution to creating a more dynamic and inclusive economy in the country? What are the main challenges in promoting fintech innovation and opening up new opportunities for the future of money and payments?

To answer questions of this nature and delve deeper into charting the growth of the fintech ecosystem in Singapore, we were joined by Shadab Taiyabi, President of the Singapore Fintech Association, to deliver the keynote address at the FSI Conclave 2023 held at Marina Bay Sands, Singapore .

Here are the key takeaways from the session:

Singapore as a global fintech hub

Shadab opened the session by highlighting the key role the country plays in being a fintech hub and mentioned that the fintech ecosystem in Singapore has been given 250 million Singapore dollars by MAS FSTI Grants to nurture innovations, networks, platforms, regulations and the overall . ecosystem. The country continues to dominate fintech funding in the ASEAN region, investing S$4.3 billion from January to September last year. Of all the deals that took place in the region, more than half went to Singapore-based fintech firms.

Mentioning the various fintech projects that have the network effect of promoting the fintech ecosystem in the country, Shadab stated, “There are many POCs or industry-wide projects that are led and participated in by financial services organizations. Starting with Project Ubin, which is about wholesale -CBDCs, Project Veritas on responsible AI, Project Guardian on testing the use of blockchain technology in the traditional financial services space for faster financial settlements, Project Greenprint as a comprehensive set of initiatives to drive the green finance agenda for Singapore and make it the green the financial hub, and Project Orchid as a project for purpose-based money, retail CBDCs to be tested in a safe and clearer environment.”

And in 2022, Singapore fintech funding hit a three-year high amid macroeconomic headwinds. This is one of Singapore’s highest fintech investments of the decade, bucking a global trend of declining fintech investment.

Shadab continued, “This is phenomenally large and extremely interesting for global conglomerates, and companies operating outside of Singapore to actually see ASEAN as an important geographic jurisdiction to focus on.”

The evolution of the fintech ecosystem in Singapore

There are many phases where the Singapore fintech ecosystem has left its mark on the global stage for the development of fintech in not only shaping the future of money and payments for the ASEAN region, but also building its growth trajectory towards industry impact. Here are the details of the five phases that Shadab mentioned in his speech:

Phase 1: Start-up of Singapore’s fintech industry – Innovation and experimentation

• Launch of the Financial Sector and Innovation Scheme (FSTI) in mid-2015
• Creation of a new FinTech and Innovation Group (FTIG) by MAS
• Launch of the FinTech Regulatory Sandbox framework in 2016
• The start of the world’s most impactful fintech event – Singapore FinTech Festival (SFF)

Phase 2: Singapore fintech goes global – Innovation goes international

• The FinTech industry went global
• Funding to ASEAN fintech firms increased by at least 25% in 2018 from 2017
• Launch of API Exchange (APIX) at SFF 2018

Phase 3: Singapore fintechs double down — From startup to scale-up

• Launch of Sandbox Express
• Payment Services Act (PSA) adopted
• Provision of a S$125 million COVID support package for financial and fintech sectors in early 2020

Phase 4: Singapore fintechs continue as the pandemic hits the world

• Acceleration of digital transformation due to the pandemic
• ESG was at the centre
• Launch of Project Greenprint in 2020
• Singapore placed as Asia’s highest ranked fintech country and fourth globally

Phase 5: The Current State of Fintech

• Singapore still has the largest number of fintech firms in the region
• In 2022, Singapore FinTech funding hit a 3-year high amid macroeconomic headwinds. Total deal value rose 22% year-on-year to $4.1 billion
• Diversification of products and services
• Singapore as the location of choice for FinTechs looking to access ASEAN’s growth markets

How the Singapore Fintech Association is expanding the fintech community

On SFA’s journey and mission to expand the fintech community in Singapore and aid its growth, Shadab stated: “Our aim is to promote engagement in the fintech ecosystem through events, membership programs and knowledge sharing. We strive to create a community that connects, empowering and inspiring all individuals to foster a vibrant fintech hub.”

Shadab concluded his keynote speech by saying, “SFA’s Executive Committee, together with the SFA team and sub-committees, aims to build Singapore’s FinTech community through collaboration and advocacy, strengthening its position as the leading FinTech hub in the region.”