The Monetary Authority of Singapore (MAS) has published an Industry Transformation Map (ITM) outlining its plan to cement the country’s status as a leading global financial center in Asia.
With technology increasingly transforming financial services, MAS believes it needs to facilitate the updating of the whole financial sector in order to stay relevant in a competitive global market. In particular, it aims to make Singapore a leading international wealth management hub, fund management and domiciliation hub, and global center for forex in Asia. In order to do this, Singapore wants to grow its financial sector by creating 3,000 financial services jobs and 1,000 fintech jobs.
Here’s how MAS plans to achieve its goals:
- Building private market funding platforms. These platforms will aim to more easily connect companies with investors to facilitate funding, and could be similar to the one launched by the London Stock Exchange Group (LSEG) in July. This will enable Asian growth companies to gain better access to a wider network of investors.
- Establish itself an Asian infrastructure financing hub. MAS intends to make it easier for Asian infrastructure projects to gain funding by using innovative new technology. In order to achieve this, members of the Singapore financial ecosystem will work with multilateral development banks, which aim to provide financing for national development.
- Introducing centralized blockchain platforms. MAS wants to transform the insurance marketplace by enabling more accurate risk decisions, as well as the creation of specialist insurance solutions to address emerging risks in the region. Centralized blockchain platforms will help facilitate this by affording firms a consistent technology infrastructure to underpin their solutions. This will make incorporating solutions with one another easier and enhance working together across sectors.
It’s wise of MAS to focus on the whole financial sector, rather than simply new developments. This top-down approach will help to transform the city-state’s entire financial services market, improving Singapore’s overall infrastructure and connectivity. Additionally, by enabling Asian growth companies to get access to a wider network of investors and helping Asian infrastructure projects to gain funding more broadly, other countries in the region should get a boost. With these steps, it seems that Singapore has recognized that technology is now an integral part of the financial sector, and that it can be used to disrupt the industry for the better.
Fintech hubs — cities where startups, talent, and funding congregate — are proliferating globally in tandem with ongoing disruption in financial services.
These hubs are all vying to become established fintech centers in their own right, and want to contribute to the broader financial services ecosystem of the future. Their success depends on a variety of factors, including access to funding and talent, as well as the approach of relevant regulators.
Sarah Kocianski, senior research analyst for BI Intelligence, Business Insider’s premium research service, has put together a report that compiles various fintech snapshots, which together highlight the global spread of fintech, and show where governments and regulatory bodies are shaping the development of national fintech industries. Each provides an overview of the fintech industry in a particular country or state in Asia or Europe, and details what is contributing to, or hindering its further development. We also include notable fintechs in each geography, and discuss what the opportunities or challenges are for that particular domestic industry.
In full, the report:
- Explores the fintech industry in six countries or states, including Singapore, and identifies individual fintech hubs.
- Highlights successful fintechs in each region.
- Outlines the challenges and opportunities each country or state faces.
- Gives insight into the future of the global fintech industry.
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