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Taking stock of Singapore’s FinTech landscape, 2024

FinTech’s state of play 2.0
FinTech’s state of play 2.0: Understanding Singapore’s FinTech landscape 2024
  • October 29, 2024
This report is jointly published by PwC Singapore and Singapore FinTech Association (SFA).
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Discover the pulse of Singapore’s FinTech ecosystem

In 2022, Singapore’s FinTech industry experienced remarkable growth, driven by substantial funding and the transformative impact of the COVID-19 pandemic. Today, an updated analysis of this dynamic sector reveals key insights drawn from over 160 FinTech firms and exclusive interviews with industry leaders.

Key insights

Decade of development

  • 55% of FinTech companies in Singapore are concentrated in Payments, Web3, and RegTech, indicating a strong emphasis on digital transactions, blockchain technologies, and regulatory technologies.
  • The average FinTech company is 5.5 years old, showing a relatively young but maturing industry.

Sectoral growth

While the overall FinTech industry is expanding, different sub-sectors are growing at varying rates. Web3 companies have seen substantial growth, likely due to advancements and regulatory support in blockchain and digital assets. Conversely, the lending sector has experienced a slowdown, which could be due to market saturation or regulatory challenges.

Outlook

The number of new FinTech companies may stabilise, but existing firms are expected to continue growing. This growth will occur both organically, by expanding their customer base, and inorganically, through mergers and acquisitions. The payments sector, being the most mature, is likely to drive this expansion.

Prominent sectors to watch

Payments

Leading the industry with the highest number of companies.

RegTech

Essential for compliance and security.

Web3

Rapidly expanding from 5% of the ecosystem in 2022 to 16% in 2024, driven by regulatory clarity from the Monetary Authority of Singapore (MAS).

InsurTech and ESGTech

Both sectors are experiencing steady growth, fueled by digital disruption in insurance and increased focus on environmental, social, and governance (ESG) solutions.

The FinTech landscape is evolving, with significant growth in Web3, InsurTech, and ESGTech sectors. Other key finding include:

  • 78% of firms have recalibrated their business models in the past three years, introducing new products and services or changing their target business models.
  • Funding has declined in 2023 and 2024, but mergers and acquisitions have increased, particularly in the payments sector.
  • Companies are focusing on profitability, cost efficiency, and market expansion.

Future trends

The FinTech market is continuously reinventing itself to meet the demands of geopolitical events and economic shifts. Survey results shown that 80% of respondents are optimistic about the future growth of FinTech in Singapore. Some key trends identified includes:

Digital payments continue to innovate and expand, remaining a cornerstone of the FinTech ecosystem. As the most mature sector, it is expected to lead the industry’s growth. Companies are focusing on enhancing user experience, increasing transaction security, and integrating emerging technologies like blockchain.

Beyond investment, AI is a tool for operational efficiency. The Singapore Government’s National AI Strategy (NAIS 2.0) supports this growth by fostering AI development and integration across various sectors. FinTech companies are leveraging AI to improve customer service, detect fraud, and optimise financial operations.

Digital assets are gaining prominence as a significant trend within the FinTech space. The growth of Web3 companies, which has increased from 5% to 16% of the ecosystem from 2022 to 2024, highlights the rising importance of digital assets. Regulatory clarity from the Monetary Authority of Singapore (MAS) has been a key driver in this sector’s expansion.

Quantum computing is poised to revolutionize the FinTech industry despite the cybersecurity challenges it presents. This technology is driving the development of quantum-resistant encryption algorithms, which are essential for securing financial transactions in the future. Quantum computing’s superior processing power also enhances AI’s analytical capabilities, opening new avenues for innovation in FinTech.

Mapping Singapore’s 2024 FinTech industry

Mapping Singapore’s 2024 FinTech industry

Understanding Singapore’s FinTech landscape 2024

FinTech’s state of play 2.0

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About the survey

This survey recorded over 160+ responses from a diverse mix of FinTech firms offering various products and solutions. Categories and subcategories were developed with input from the Singapore FinTech Association. Additionally, insights were gathered from industry experts such as Ms. Sharon Lourdes, Co-Founder and CEO of Headquarters, and Mr. Chuang Shin Wee, Co-Founder and CEO of Pand.ai, focusing on emerging trends in Artificial Intelligence (AI) and Quantum Computing (QC). More details can be found in the full report.

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Contact us

Wong Wanyi

Wong Wanyi

FinTech Leader, PwC Singapore

Tel: +65 9842 2060

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