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FinTech (Financial Technology)
The finance industry in Singapore is experiencing changes and transformation today the way it never has before in history. With that comes growing demand for more B2B and B2C solutions and the need to provide better, more innovative solutions is growing at a rapid pace.
What is FinTech?
Financial technology, termed “FinTech” for short, is quite simple financial services which incorporate the use of innovative technology. Some examples of FinTech being used include internet money transfer services which are commonly offered by banking institutions, alternative payment channels and even financial services offered by start-ups at a lower cost through the internet.
As long as a service makes use of both finance and technology, it can be referred to as FinTech, and it doesn’t matter of the service is more technology-oriented or finance services-oriented. If it uses both in its operations, it’s a FinTech.
Why is FinTech So Important?
One reason why FinTech is of growing importance is because we cannot avoid it. It affects almost all areas of financial services, which includes everything from payment, transfer, trading, insurance, risk management, borrowing, lending and even fund raising. This on top of the fact that new technologies have made it increasingly easier to deal with financial matters more efficiently at a much lower cost.
Singapore is becoming more and more invested in transforming its financial sector, and it is doing so by supporting and encouraging SMEs and entrepreneurs who are FinTech start-ups.
Singapore is committed to creative collaboration and innovation, and Singapore understands that transformation in the FinTech sector won’t just benefit firms, but it could potentially enhance and strengthen the country’s entire economy. It is certainly clear that Singapore plans to maintain its status as a global financial centre, a fact confirmed by how much traction crowdfunding services and invoice financing services for SMEs have gained.
While it may still be a relatively new concept in Asia, crowdfunding in Singapore has really taken off and entrepreneurs are quickly getting on board with this method which helps them raise the capital they need from external providers. With more than 800 crowdfunding platforms available worldwide, it has become a useful tool which SMEs can leverage on to help them secure the seed money they need for business expansion and development. Continue to Read
Invoice financing is another rising option for many businesses and SMEs because of the advantages that this solution offers to help overcome the issue of outstanding invoices. Unpaid or late payment invoices can have a significant impact on the cash flow of a business, and thus, invoice financing is the solution that SMEs need to help overcome this challenge. Continue to Read
Equity enable investors to purchase equity from the company. This allows investors to either enjoy dividend payments from the company, or cash their investment out from an eventual exit.The Monetary Authority of Singapore released new regulations sometime last year regarding equity crowdfunding platforms in Singapore, and new rulings have made it easier for companies to seek funding and for investors to make investments Continue to Read