free newsletter
In 2024, Singapore has further consolidated its position as a global fintech leader. The year marked a milestone in cross-border payment coordination efforts, particularly through Project Nexus, with the near-universal adoption of cashless payments.
New Cryptocurrency Regulations come into force, introducing anti-money laundering (AML), countering the financing of terrorism (CFT) and financial stability requirements, reflecting Singapore’s commitment to foster innovation in the area of cryptocurrencies and tokenization It was done.
Emerging technologies such as artificial intelligence (AI) and blockchain are rapidly being adopted, making generative AI an important tool for financial institutions.
Finally, the fintech startup ecosystem continues to diversify, a trend evident in the rapid growth of the Web 3.0, insurtech, and ESG tech sectors, supported by regulatory guidance and targeted incentives. Yes, reflecting the growing maturity of the sector.
Cross-border payments and digital advancements in Singapore
Singapore advances digital payments and faces new challenges in cross-border interoperability. According to Monetary Authority of Singapore (MAS) Managing Director Chia Del Jiun, more than 90% of the population is registered with the country’s digital payments scheme, and almost all merchants (close to 100%) use QR. A code payment system has been introduced.
On the international front, Singapore has also made strides in cross-border payments linkages with countries such as Thailand, Cambodia, Malaysia and India. However, these bilateral collaborations are resource-intensive, so this challenge has been resolved in the following ways. project nexus. Project Nexus is a joint initiative with the Bank for International Settlements (BIS) to create a multilateral framework to ensure that one country’s instant payments system is seamless with other countries’ instant payments systems through a single, streamlined integration. It is intended to allow you to connect to.
Singapore ramps up tokenization efforts
April, M.A. expanded Introducing requirements regarding the scope of regulated payment services, anti-money laundering, anti-terrorist financing, user protection and financial stability of digital payment token service providers.
These amendments to the Payment Services Act (PS Act) bring several activities within the scope of the framework, including providing custody services for digital payment tokens, facilitating the transmission of these tokens between accounts, and facilitating token exchange. will be incorporated within.
These regulatory advances are consistent with Singapore regulations. Initiatives to accelerate tokenization. Key MAS initiatives driving this acceleration include:
- Guardian Wholesale Network Industry Group is a commercial network supporting the scaling of asset tokenization trials.
- The Global Layer 1 (GL1) initiative aims to accelerate the development of a publicly licensed foundational digital infrastructure on which commercial networks can be deployed.
- Guardian Bond Framework. It integrates fixed income data taxonomy, token standards, and design principles for tokenized securities to enable a standardized approach to tokenization in fixed income markets.
- The Guardian Funds Framework provides recommendations for establishing a framework for the tokenization of fund lifecycles and activities. and
- Singapore Dollar (SGD) Testnet. Allows financial institutions access to common settlement assets for market testing purposes.
Accelerating fintech growth through financial support and human resource development
In 2024, the Singapore government will also launch Several initiatives to strengthen global fintech leadership. These efforts include:
- Additional S$2 billion in funding to the Financial Sector Development Fund (FSDF): This funding will accelerate technology adoption, support talent development and upskill the workforce to meet the demands of the fintech industry. The purpose is to.
- S$3 billion commitment to the Research, Innovation, and Enterprise 2025 (RIE2025) plan: This increase aims to keep investment in research, innovation and enterprise at around 1% of gross domestic product (GDP). I’m here.
- Enhanced Enterprise Financing Scheme (EFS): EFS has been updated to better support operating cash flow needs, with the maximum loan amount increased to S$500,000.
- Enhanced PACT Program for Small and Medium Enterprises and Emerging Businesses: This program enhancement addresses the challenges small and medium-sized enterprises (SMEs) and emerging businesses face in today’s competitive market by fostering partnerships between large and small businesses. It is a strategic measure aimed at directly confronting and mitigating hurdles.
- Skill Expansion Future Initiative: This initiative focuses on upskilling our workforce to meet the evolving demands of the fintech industry.
Technology adoption is increasing in the fintech industry
Singapore’s fintech sector is embracing innovative technologies such as artificial intelligence (AI), blockchain, and quantum computing.
According to A survey of more than 160 Singaporean fintech companies conducted by PwC Singapore and the Singapore Fintech Association (SFA) found that 43% of respondents prioritize emerging technologies to ensure competitiveness in an increasingly digital world. The answer was yes. This is not just a trend, the report says, but represents a fundamental shift in how fintech companies are rethinking their services and their role in the global economy.
In particular, the adoption of generative AI (genAI) is progressing rapidly. SFA and Accenture’s 2024 Singapore Tech Talent Report reveal 89% of financial institutions are considering or implementing GenAI, and 65% are actively using it. This is a 27% increase from 2023.
Singapore continues to lead in fintech funding
2024, Singapore continuation Leading FinTech funding throughout ASEAN. In the first nine months of this year, Singaporean fintech companies raised US$745 million, accounting for 53% of Southeast Asia’s fintech funding and 62% of deals.
This amount is slightly down from US$767 million. safe This shows the resilience of Singapore’s fintech industry despite global funding challenges.
Major funding rounds in 2024 include:
- GXS – USD 280 million (2 rounds)
- Anext Bank – USD 148 million
- Partition’s US$60 million Series B.
- SDAX’s USD 50 million Series B;
- NIUM’s US$50 million Series E. and
- Signum’s US$40 million Series B.
Singapore is home to six of Southeast Asia’s 17 fintech unicorns. These unicorns were created by Advance Intelligence Group (cherished (US$ 2 billion), Volttech (US$ 1.5 billion), Amber Group (US$ 1.5 billion),3 billion USD), Coda Payments (US$2.5 billion), Matrixport (1.05 billion USD) and NIUM (US$1.4 billion).
Featured image credit: Editorial source freepic
