Singapore isn’t a big Republic. In addition, it has natural resources which are somewhat limited. However, despite its smaller size and its limited number of natural resources, this island city-state manages to thrive. It’s becoming a global hub for fintech and it may just be the world leader in fintech at some point in the future.
In case you’re unaware, fintech is progressive financial technology and it’s definitely a niche of industry which is gaining traction everywhere. People want fintech products and services and many of these products and services come from Singapore.
Why is Singapore a Fintech Leader?
Singapore is the home to MAS, which is the Monetary Authority of Singapore. This is a bank which is central and it features a department known as the Fintech & Innovation Group. The mandate of this group is to make it easier for the financial sector to utilize technology.
The Fintech & Innovation Group is a new department and its director feels that the new department signifies MAS’ dedication to smart financial technology, now and in the future. The department’s overarching goal is to make new opportunities which will improve the lives of others.
MAS Offers Resources to Entrepreneurs
The fintech industry in Singapore is supported by the government and it’s also supported by the central bank, MAS. All of Singapore’s business regulations and legislation are geared towards supporting this type of innovation in the field of finance.
MAS is leading the way by offering a help page online, which makes it easy for entrepreneurs to check out their fintech innovations via a virtual “sandbox” which makes it simple to test ideas and to test cases for specific usage. This service is unique and it demonstrates Singapore’s commitment to helping innovators in fintech and helping regular citizens to benefit from advances in fintech.
As well, the Republic’s government leaders are putting a lot of money into rebates and grants for fintech startups. To date, via the central bank, the government has contributed two hundred and twenty-five million Singapore dollars, which equates to one hundred and fifty million dollars US, which is to be handed out over a time frame of five years. It’s earmarked only for fintech initiatives.
There is one type of grant associated with this funding which permits companies to get fifty percent back on their expenses, to a maximum of one hundred and forty thousand United States dollars. It will be refunded when concept trial proof is submitted and approved. As well as the grant option, entrepreneurs may access angel investment funds and VC funds. Also, a lot of tax incentives are available.
Schools are Focusing on Fintech
The government wants young students to develop their fintech skills early on, so it’s also partnering with junior college leaders, with a mind to ensuring that students are able to build skills and get exposed to fintech during their classes. Schools are adding coursework in fintech-related areas, including app development and software, and they are creating internships for students who have interest in fintech and ability in fintech. As well, they are setting up joint projects in this niche.