Fri, Jun 19, 2020 – 7:05 PM
INVESTMENT in Singapore-based monetary know-how (fintech) corporations spiked 12 months on 12 months within the first six months, on the again of a surge in offers in April and May 2020.
Fairness funding hit S$462 million within the interval to June 15, up 19 per cent in opposition to the primary half of 2019, going by business information launched on Friday.
Banking companies for small and medium-sized enterprises (SMEs) made up the largest chunk of fund-raising at S$223 million, fuelled by the funds and lending product verticals.
Retail banking the was subsequent greatest cluster for buyers, attracting S$67 million in fairness funding; know-how suppliers pulled in some S$65 million.
The info confirmed that extra investments had been made in mid-stage fintech firms – Sequence C rounds or later – than in seed and early-stage funding.
Pauline Wray, managing director of BCG FinTech Management Tower, stated the ecosystem is maturing some 5 years after the Financial Authority of Singapore (MAS) unveiled a give attention to fintech.
“Fintechs across the world have injected a new lease of life to financial services by supporting the financial industry as they provide value-added services and products to both new and existing customers,” she stated, including that insurance policies from the MAS are “now coming to fruition”.
BCG FinTech Management Tower, a analysis collaboration between Boston Consulting Group and Increase Analysis, labored with the MAS to compile and analyse the newest funding information.
MAS chief fintech officer Sopnendu Mohanty stated in an announcement: “As we come out of the coronavirus pandemic, fintech has the good alternative to make a significant affect in 2020 and past by accelerating digitalisation of economic companies.
“In spite of the challenging environment, investors’ confidence in fintechs demonstrates a deep understanding and appreciation of the long-term value fintech firms will create.”