C H E Q U I N G O U T
C H E Q U I N G O U T
Mr Shadab Taiyabi , President , Singapore FinTech Association , commented : “ It is encouraging to see that ASEAN remains as a vibrant hub for FinTech innovation , with the sector demonstrating resilience and adaptability in the face of ongoing volatility . The FinTech ecosystem in Singapore continues to attract robust
ASEAN ’ s FinTech funding amount against US Federal funds rates from first quarter 2019 to third quarter 2024 funding , driven by strong regulatory support and opportunities for crossborder collaboration . Looking ahead , SFA remains committed to foster the growth of the FinTech ecosystem while creating new opportunities for FinTechs to leverage emerging technologies and strategic partnerships that will further strengthen the ecosystem .”
The next decade of innovation
With the US Federal Reserve ( Fed )’ s recent interest rate cut in September 2024 , the FinTech industry will likely receive a shot in the arm . Lower interest rates typically lead to cheaper funding , greater investor appetite from venture capital and higher valuations , ultimately improving exit opportunities . When Fed last cut interest rates in third quarter
2019 and further slashed it to a historical low during 2020 to 2021 , ASEAN ’ s FinTech funding spiked and peaked at US $ 6.36 billion in 2021 , the region ’ s highest amount in the past decade .
Beyond better macroeconomic environment , FinTechs worldwide are set to enter a new era catalysed by two advanced technologies – GenAI and quantum computing – which may potentially reshape the financial ecosystem significantly .
In 9M24 , global funding injected into the GenAI sector increased by 38 per cent yoy . GenAI can significantly enhance customer experience in the FinTech sector with innovative personalised financial advice and products , improved fraud detection and risk management .
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