Redrawing the lines: FinTech’s growing influence on Financial Services

PwC’s Global FinTech Report 2017 – Singapore Highlights


“The innovators of today may not necessarily be the innovators of tomorrow. The question companies need to ask themselves is ‘Are we innovating effectively?’ While partnerships is one of the preferred ways to catalyse innovation, to reap its benefits, companies need to be mindful that whomever they partner with, be it a tech company or financial institution, is a good fit.”

Antony Eldridge, FinTech and Financial Services Leader, PwC Singapore
 


Singapore responses at a glance

81% of financial institutions (FIs) surveyed are concerned about losing revenue to innovators

95% of FIs surveyed will increase internal efforts to innovate

89% of all respondents expect to increase FinTech partnerships in the next 3 to 5 years
 


Key findings

FinTech in Singapore over the next 5 years

  • FinTech solutions are expected to evolve beyond low-value and high-volume transactions to address more advanced and complex needs of targeted client groups, for example the clientele in the wealth management sector
  • According to 76% of local respondents, wealth management activities are most at risks of moving to FinTech companies
  • This presents both an opportunity and a threat to Singapore’s wealth managers as clients place greater value on stronger technology propositions

Opportunities in FinTech

  • Of the opportunities related to the rise of FinTech, expanding products and services emerged as the number one opportunity by far in Singapore (60%) and globally (62%)
  • when it comes to leveraging FinTech to differentiate their business, more local industry players (45%) recognise this as an opportunity compared to their global peers (29%)

The major challenge in Singapore: Regulations

  • Regulatory uncertainty emerged as a major challenge faced by respondents from both FIs (50%) and FinTech companies (55%) when working together with one another
  • The top three regulatory barriers to innovation encountered by local industry players surveyed are: AML/KYC - 59%; data storage, privacy and protection - 56%; and new business model (crowdfunding, peer-to-peer landing) – 44%
  • To address the regulatory challenges, the Monetary Authority of Singapore (MAS) is at the forefront by working with the industry through its Regulatory Sandbox so that new technologies can be experimented while minimising risks to customers
  • Additionally, the MAS is also piloting a national KYC Utility to streamline the verification of personal details for opening accounts and conducting transactions online


Download the Singapore highlights and access our global report here.

Learn more about our FinTech practice here. For inquiries, please get in touch with Jessica Duns.
 

Contact us

Antony Eldridge
FinTech and Financial Services Leader
Tel: +65 6236 7348
Email

Andrew Taggart
FinTech Consulting Leader
Tel: +65 6236 4548
Email

Mark Jansen
FinTech Digital Trust Leader
Tel: +65 6236 7388
Email

Wong Wanyi
FinTech Director
Tel: +65 6908 8025
Email

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