According to a report published on Thursday, investment in Singapore fintech companies is increasing. The report was published by consulting company Accenture. The totaled investment is close to half a billion dollars. That investment is only in the first half of this year.
The same report shows investors have pumped $453 million into fin-tech firms. The firms operating in the small, Southeast Asian city-state during the first six months of the year. The amount of that investment is nearly a four-fold increase in the same period in 2018.
From that investment, around 28% of the money went to insurance technology companies. Meanwhile, another 27% went to payment companies. Another 25% of the totaled investment, around $113 million was invested in lending firms.
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Other than that, a small number of firms also raised a sizeable proportion of that cash. One of them is a cloud technology company, Deskera. The company raised $100 million in May. Besides Deskera, GoBear, an insurance technology provider also contributes to the Increasing investment in Singapore fin-tech. GoBear raised an investment of $80 million.
Big Investment in Small Country
By the figures presented in Accenture’s report mean that Singapore is now the third-largest hub for financial technology in the Asia-Pacific region. The rank is based on the number of funds raised.
The countries that can raise a bigger amount than Singapore is only China and India. Meanwhile, both countries have more than a billion people each. Therefore, Singapore is the only small country in the region that can gain that huge amount of investment.
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Many predict that the increasing investment in both value and the number of deals can bring a better environment for Singapore fin-tech. Other than that, the expert also expects that the development of Singapore’s financial technology will be massive.
This steady flow of funds shows investors’ confidence in the industry’s future growth potential. Moreover, the forthcoming virtual banking licenses will help create more opportunities for fin-tech start-ups.
