Covid-19 Responsible for Driving Digital Investments Up
Since the Covid-19 pandemic, the rise in digital investments saw Singapore experiencing the largest rise in digital investments among financial institutions.
The boost in investment rose because of the need brought about by Covid-19. This was an attempt by the banks to help boost their online offerings. The pandemic has accelerated the need for new technology integration and innovation.
This rise in digital investments meant that Singapore experienced its largest digital banking investment increase out of any market. The banks increased their overall budgets and investment by 84 percent. This was the highest global rise.
This was a move by the banks to adapt to the challenges that Covid-19 brought about. Technology adoption became the third-biggest driver. This was followed by cost-cutting measures and business growth.
However, there are barriers that remain, hindering the progress of innovation. One example of such a challenge was that key decision-makers were unable to adapt to the new way of thinking. They were still “stuck” in the old way of doing things because this has been the norm for so long.
Other challenges include tight industry regulations and the cost of such development. Since the introduction of the SGFinDex in December last year, businesses now depend on open banking as an important component. By introducing initiatives such as banking-as-a-service, Singapore is now beginning to lay the foundation for open finance. This paves the way for even greater innovation and competitive services among banks.
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No challenge is enough to thwart Singapore from marching forward, not even the Covid-19. No matter what the challenge, Singapore is ready to adapt and change as needed. This is why Singapore has always thrived as a business hub and why entrepreneurs around the world want to start a Singapore company.
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