Although investment recalibration has been observed at a global level, the fintech industry in Singapore is still doing very well. The amount of investment in fintech reached $1.3 billion in 2024, which was the lowest figure recorded in the world for at least seven years, but at the same time, it showed that Singapore was a compelling choice as a center for innovation. AI and blockchain technologies are at the root of the development of this industry.
The funding of the AI-powered fintech sector jumped drastically from $24 million in the first quarter of 2024 to $160 million by the year-end which was a significant increase. They are partly taking part in the digitalization of payments, the creation of Reg-tech and business automation in Singapore.
Investments in blockchain also increased by 22% in the second part of 2024 mainly due to the digital transfer of assets and the improvement of the financial infrastructure. The fact that the government has a good regulatory environment in place has attracted a lot of people to the country, and therefore, it has become a key player in the developing sectors.
The government’s Budget 2025 initiatives are about embedding AI in an extensive manner across businesses, while also keeping ethics in check. These moves are likely to further boost fintech growth in Singapore and make it an even stronger insular financial market.
