It is undeniable that the fintech industry is growing at a high speed. Digital technology is, of course, the main reason this massive growth happened in the past few years. Among many countries that are trying to develop in this specific industry, there are some countries that are leading the competition. According to The Institute of Chartered Accountants in England and Wales (ICAEW) and the Institute of Singapore Chartered Accountants (ISCA), London and Singapore are the two countries that are best in fintech.
1. Fintech Hub Elements
Innovators, investors, and regulators need to be able to interact well in order to make fintech effective. Network building and learning from one another are the important aspects that must be able to be done in the growing fintech industry. It is clear that it is important for the development of fintech solutions to be concentrated in specific hubs where the five key elements of markets, talent, capital, progressive regulation, and strong government support can work together.
All of these elements are present in London and Singapore. They are the countries with well-organized financial services sectors that can provide strong foundations for fintech.
2. Regional Strategies
Aside from the five core elements that are essential, fintech strategies may vary in different countries. Businesses, regulators, as well as governments, must be able to adapt their strategies according to the needs of their respective countries.
Singapore and London are the countries that grasp this importance and take it into consideration. For example, Singapore pays great attention to startups and established sectors, acting as a gateway to a wider market in Southeast Asia. Meanwhile in London, the focus is about disrupting incumbents and raising focus on scaling up fintech businesses.
3. Singapore Market Overview
Singapore may be a small country located in Southeast Asia. it has a low population but great potential due to its strategic location. The country has been thriving as global commerce, finance, and transport hub. According to the Global Financial Centres Index (GFCI) in March 2018, Singapore sits in fourth place in the charts of the most competitive financial sector in the world.
While Singapore is undoubtedly one of the most developed countries in Southeast Asia with outstanding infrastructure, economic strength, and strategic location, the country still is in its early stage of development, however rapidly. In not more than two short years, Singapore FinTech Association has become one of the largest associations in the fintech industry, having over 300 corporate members and international partnerships in at least 30 countries around the globe.
Singapore has per capita GDP of approximately $57.714 along with high speed internet connection, high quality human resources, and of course state of the art infrastructure, making it the country with crucial factors to grow a strong fintech sector. Moreover, Singapore is best known as a country with strong policies and regulations as well as effective tax incentives. All these advantages are great leverage to a strong fintech industry development, which is why it is really not a surprise that this Southeast Asian country is currently leading in the fintech industry.