The number of fintech companies in Singapore has increased by 70% over the past year to more than 1000. About half of these companies were founded by foreigners.

According to Bloomchain.ru, Singapore has become a popular Asian fintech hub due to the efforts of the city-state’s authorities aimed at attracting foreign experts.

There were only 50 fintech companies in Singapore five years ago, but the number has jumped, with 400 emerging just in the past year, according to the Monetary Authority of Singapore (MAS).

There are some features that are common to fintech companies based in the city-state.

Firstly, fintechs in Singapore are often founded by foreigners. Singapore is popular among foreign entrepreneurs due to its developed state and corporate systems that make it easier to do business. Besides, the city has launched many business support programs, such as various business accelerators and special visa programs.

Secondly, some 80% of local fintech companies are engaged in B2B. That is in stark contrast to other Southeast Asian nations, where fintech startups focus on servicing retail consumers. The population of Singapore is just 5.7 million, while more than 100 credit institutions and many offices of multinational companies are registered in the city-state.

The Monetary Authority of Singapore announced in August that it would commit $184 million over the next three years to the development of the financial sector. It will encourage innovation technologies by supporting companies in the early stages of development of experimental solutions.

“But there are challenges, too. Despite the rapid growth in the number of Singapore-based fintech startups in recent years, there are no startups equivalent to “unicorns” among them. The size of each company's business is also relatively small. Singapore-based fintech companies raised $190 million in funds in the first half of 2020, down 58% from a year ago, according to a survey conducted by consultancy Accenture,” Bloomchain.ru writes.

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