Is it getting crowded in Singapore’s fintech sector?

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Hello reader,

Eleven years ago, the Singapore government released a whitepaper that projected population growth in the country. The original figure was set at 6.9 million people.

People got up in arms about it, seeing as Singapore was already feeling crowded at the time. The government quickly clarified that 6.9 million was not a target per se, but more of a “planning parameter.”

The response from the populace, however, was a clear display of what many Singaporeans were unhappy about. Jostling with other people on public transport at peak hours was highly annoying, not to mention having to compete for other resources, so the frustration was understandable.

Being a small country, space is an issue that Singapore has always grappled with. However, it’s not just physical space that’s a challenge. The city-state’s business landscape can also fall prey to this conundrum, as evidenced by the local fintech sector.

Today’s premium story looks at the dozens of fintech players operating in small, small Singapore.

Today we look at:

• Fintech firms trying to make their mark in the city-state
• Vidio’s plan to double its paid subscribers
• Other newsy highlights such as Microsoft’s US$2.2 billion investment in Malaysia and BYD’s new electric vehicle plant in Indonesia

Premium summary

We’re gonna need a bigger market

Image credit: Timmy Loen

Just based on the chart in today’s premium story, there are roughly 200 active fintech firms in Singapore. Yes, I counted, although I might be a little off (and the list we’ve got isn’t exhaustive). Singapore may be known as one of the top financial centers in the world, but isn’t this number a bit too much?

Let’s see how the country’s crowded fintech scene is shaking out.

• Way down we go: Funding for local fintech startups was steadily increasing from 2014 to 2022, but there was a significant dip last year, dropping from US$2.3 billion in 2022 to US$1.5 billion in 2023.
• Big boys in banking: Most of the biggest funding rounds in 2023 consisted of strategic investments from parent firms into their respective digital banks. This includes Ant Group’s US$188 million injection into Anext Bank and Sea Group’s US$172.5 million investment into Maribank.
• Hype now, slow later: The BNPL space, on the other hand, has been slowing down a fair bit. ShopBack recently discontinued its PayLater service in Singapore, while another local firm, Pace, filed for liquidation.

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