Investors poured a record $735 million into financial-technology ventures in Singapore in the first nine months of this year, according to research from Accenture, which analysed data from CB Insights, Pitchbook and Tracxn.
That’s up 69% from the same period a year earlier and exceeds the $642 million raised in all of 2018, the study found. Investments in payments startups and those in lending made up the bulk of fintech fundraising, accounting for 34% and 20% of the total, respectively. Insurance technology deals comprised 17%.
The trend underscores growing opportunities in the sector as fintech ventures and traditional financial firms look for ways to collaborate as Singapore prepares to issue new digital banking licenses.
The central bank said in June it plans to issue as many as five new digital bank licenses to non-banks to strengthen competition in financial services. The UK and Hong Kong are among major economies that have allowed virtual banks, creating a new generation of rivals for traditional lenders.
© 2019 Bloomberg L.P.