Based on the FinTech’s state of play 2.0 survey results, the top three sectors of FinTech by count of companies are: Payments, Web3,RegTech.The count of Web3 companies has grown significantly from just 5% of the Singapore FinTech ecosystem in 2022 to 16% in 2024.
Number of Web3, InsurTech and ESGTech companies continues to grow while other sectors expand at a slower pace.
- Regulatory clarity acting as a catalyst for Web3 sector
- Changing customers’ needs encourage growth in the InsurTech sector
- Disclosure and reporting requirements attract ESGTech solutions
Adoption of emerging technology as key
Survey respondents told us that emerging technology adoption has become the dominant priority for fintech firms. 43% of them placed AI adoption, blockchain and other emerging technologies as their main priority. This is driven by the promises of enhanced efficiency of operations, as well as the need to maintain profit margins in a highly competitive environment.
Market expansion through offering new products and entering into new market stands as the next priority for 29% of survey respondents.
Sustainable payment solutions (that involve moving towards the use of green technologies such as biodegradable cards and digital wallet solutions) and financial inclusion, as well as talent acquisition and retention jointly compromise the priority for 14% of the respondents. This is driven by the firm’s need to constantly maintain their competitive advantage over both peers and the established financial institution players.
The fintech market continues to innovate itself to meet the evolving demands and expectations driven by geopolitical events and economic reopening. Digital payments, artificial intelligence (AI), digital assets, and the future of quantum computing have become some of the most important trends.