Over the past few years, fintech has become a fast-growing industry in Singapore. Fintech was started with a business lending system; now, fintech has expanded its services from wealth management to financial advisory services. This fintech growth is advantageous for Singapore’s economic and technology sectors. Thanks to this growth, many new jobs have emerged in the technology and finance sectors.
The emergence of fintech gradually changed the financial sector in Singapore. An example is the use of HashMicro Finance ERP Software to manage finances in a company. Using HashMicro Finance ERP Software for your company is an effort to utilize fintech to make the company’s financial system more effective. With HashMicro Finance ERP Software, you can easily create and get financial reports. Here’s a discussion of what you need to know about the development of fintech in Singapore.
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What Drove the Rise of Fintech in Singapore?
Many things can develop more quickly due to advancements in technology in many sectors of life. The financial sector in Singapore, namely fintech, is not an exception. As a result of technological advancements, the expansion of fintech in Singapore has skyrocketed.
Because of its advanced infrastructure and high-speed internet, Singapore has become a global financial hub. The development of high-speed fiber networks and high mobile internet subscriptions are major drivers in Singapore’s fintech growth. In this country, the mobile or digital payment system is essential to the financial system.
Digitalizing the traditional financial business can help reduce high operational expenses, improving the efficiency of financial transactions. Finance Enterprise Resource Planning (ERP) software is an example of an application that benefits from Singapore’s well-developed internet infrastructure by streamlining and improving business processes related to money management. Finance ERP software makes it easy for your company to keep track of budgets, predict cash flows, figure out asset depreciation, and make accurate financial reports.
It is unsurprising that Singapore is home to many technology start-ups, notably in the fintech industry, given its advanced internet network infrastructure. Many fintech companies wish to establish their businesses in Singapore to access a high-quality labor force and facilitate their expansion into other countries. Therefore, you can find Singaporean digital payment systems in other nations.
What Does Singapore’s Fintech Growth Mean for Workers?
Jobs in the fintech industry are closely related to digital technology. As an industry that is growing very fast, this industry is perfect for people who have interesy in technology. A managing director of the Monetary Authority of Singapore, Ravi Menon, said that existing jobs in the fintech and financial services industry grew by 7800 between 2016 and 2017, close to the target set by the Industry Transformation Map (ITM).
Job vacancies related to technology, such as softwar4e development, cyber security, data analytics, and artificial intelligence, are fast-growing job areas in the IT field. The fintech industry contributed nearly 2000 jobs during the 2016-2017 period. Therefore, fintech in Singapore is a field of work that is in demand by many technology activists.
What are Areas of the Fintech Industry Doing Well?
Fintech began with trade financing and is now expanding into fintech business management, wealth management, and robot-advisory or financial advisor robots. In Singapore, digital and mobile payments are a rising market based on the trend of the past few years. Sopnendu Mohanty, the head of a fintech at MAS, stated that fintech is a significant possibility that will substantially impact the digitization of financial services after 2020. KPMG also reported that most customers believe mobile phones will “very likely” replace traditional payment cards.
Which Fintech Job Roles are in High Demand?
Because technology is developing very fast, it allows a variety of new jobs. Work-related to computers or mobile phones—such as creating application interfaces—is very important because it requires user experience (UX) and a user journey in the development process. On the other hand, planning for business development or digital products also needs to be done because this is related to trends currently popular in the market, so digital project managers and digital product managers are in high demand.
Data analytics is also a high-demand job because when fintech companies are developing, company owners must focus on improving their capabilities. Producing a good payment system requires application developers or programmers who are experts in algorithm programming; full-stack developers working with data, servers, and systems engineering are in high demand in the fintech industry.
Cybercrime is now increasingly prevalent, along with the growth of fintech. Cybercrime attacks on financial platforms have created a growing demand for professional cybersecurity specialists. Tasks such as ensuring the security of financial services and transactions remain in a secure environment are included in IT security and vulnerability management. Based on the 2021 Fintech Security Report released by authID, which involved leaders of fintech companies and banks, reported that 84% of respondents hoped to increase investment in IT security, including identity authentication, in the following year.
Is the Role of Fintech a Threat to Existing Jobs in the Current Financial Services Sector?
The technology in fintech does not mean to replace humans, in this case, the jobs that exist in the traditional financial sector, such as banks. The existing fintech technology makes the customer experience better and financial transactions more effective. Even so, the fintech industry can change existing jobs in the traditional financial sector. These changes include retraining, transferring staff, and reorganization to ensure operational costs become more efficient.
Now, several banks or other traditional financial sectors have started to adopt fintech as a solution to streamline financial and operational activities. On the other hand, employees of banks or other traditional financial sectors will soon find their skills irrelevant to technological developments. The effect of changing bank operations from traditional to fintech can be seen in HSBC closing most of its branch offices in Asia. HSBC said that 90% of customer contacts have gone through digital channels such as cell phones or the internet, the emergence of the Covid-19 pandemic has also supported digital payments and reduced the use of cash.
In the future, the threat of job loss in the traditional financial sector will spur workers to improve and re-sharpen their skills to get jobs that align with the times. According to eightfold.ai, banks have three opportunities to reduce the skills gap with fintech companies, including (1) improving/sharpening skills, (2) adapting roles to future needs, and (3) recruiting potential employees.
The increasingly massive use of fintech makes it easier for various sectors in life. Available fintech services include digital payment systems, wealth management, and robots acting as financial advisors. These conveniences are driven by the internet network infrastructure and mobile internet use, spread evenly in Singapore. Both fintech and the traditional financial system can exist and work together to streamline the current financial system.
You can also take advantage of fintech by using HashMicro Finance ERP Software to manage your company’s finances. HashMicro Finance ERP Software is specifically designed to assist your company in streamlining various financial system management. Get the HashMicro Finance ERP Software pricing scheme and try the free demo now!