Singapore Claims Top Spot as Asia's Leading Fintech Hub, Ranks Fourth Globally

26 Sep, 2023

Singapore Claims Top Spot as Asia's Leading Fintech Hub, Ranks Fourth Globally

Singapore has solidified its standing as Asia's premier fintech hub, securing the fourth position globally in the Savills FinTech index, as reported by Savills World Research. The Lion City's ascent in the rankings is attributed to its substantial level of investment inflow and its steadfast global regulatory stability.

Singapore's fintech sector attracted an impressive US$34 billion in venture capital investment from 2019 to 2022, making it a leader in the field, according to Savills. Additionally, the city-state is renowned for hosting the world's largest fintech festival, further highlighting its significance in the industry. Singapore's commitment to global regulatory stability is exemplified by the Monetary Authority of Singapore, which has established eight agreements with regulatory bodies worldwide.

The Savills 2023 Tech Cities Index evaluated cities based on several criteria, including their business environment, tech ecosystem, city appeal and well-being, talent pool, and their depth and strength across various tech subsectors such as industrial tech, life sciences and health tech, fintech, e-commerce, among others.

Globally, Singapore secured the fourth spot in the index, trailing behind New York, San Francisco, and London. New York stood out for its high demand for fintech innovation, substantial capital resources for investors, and a rich pool of talent. London, crowned Europe's leading fintech hub, boasts the largest number of fintech companies globally and witnessed the highest number of VC deals from 2019 to 2022.

San Francisco and Silicon Valley clinched the third and fifth positions, serving as tech powerhouses and home to revolutionary fintech startups like PayPal, Stripe, Credit Karma, and others.

Savills noted, "Technology has allowed cities across the world to level the playing field in the game of finance, which has led to a diversification of hubs away from historically traditional financial centers."

In contrast, Chinese cities faced challenges in climbing the rankings due to tightening government policies. Despite 87% of Chinese consumers using at least one fintech service, cities like Shenzhen, Shanghai, and Hangzhou found themselves in the middle of the index. This was primarily due to recent restrictions on the reach of tech companies imposed by the Chinese government. Additionally, fintech startups in China received lower levels of VC funding compared to global counterparts, largely due to the dominance of major companies like Ant Group and Tencent.

Conversely, cities in the United States, including Boston, Chicago, Miami, Atlanta, and Charlotte (ranking nine through thirteen), capitalized on North America's status as the world's largest economy. This positioning allowed startups in these cities to secure significant clients while keeping costs in check. Lower office rents further contributed to their competitive edge, enabling them to offer cost-effective products or invest more in product development.

Fintech businesses have also driven changes in workplace trends within the financial industry, being early adopters of flexible working arrangements. These companies emphasize collaborative workspaces in their offices, reflecting the fintech culture and start-up ethos. Operators of such spaces have organized activities and events to promote the well-being and work-life balance of fintech employees.

Ashley Swan, Executive Director of Commercial Leasing, noted, "FinTech businesses have been a boon to the flexible workspace sector and continue to occupy a significant number of desks in Singapore. The collaborative and flexible nature of the spaces speaks to the FinTech culture and their 'start-up' ethos, allowing firms to remain agile as they grow, not only in Singapore but the region. In addition, regular activities and events organized by operators lend to fintech employees’ well-being and work-life balance."