Singapore's Wealthtech industry maintains robust growth, displaying signs of consolidation in the year 2021.
In the bustling city-state of Singapore, the fintech industry is flourishing, with over 1,000 companies calling it home. The wealthtech subsegment, in particular, is experiencing significant growth due to increased investment, acquisition deals, and a growing demand for automated financial advisory services.
One of the key players in this scene is 360F, a wealth advisory distribution and applications provider that leverages AI for product recommendations in life protection and wealth management. The company, along with several other Singaporean firms, was featured in last year's Wealthtech100, an annual list recognizing the world's top 100 most innovative wealthtech companies.
The partnership between UOB Asset Management (UOBMA) and telco firm Singtel is another notable development. The duo is set to launch a robo-advisory service in Singapore in the first half of 2021, with plans to integrate it into Singtel's Dash mobile wallet. This move is expected to further bolster Singapore's position as a hub for digital wealth management.
The intermingling of bigtech platforms and fintech is a trend that KPMG expects to continue growing, as companies work to extend their reach and value. This is evident in the case of Singapore, which is already home to several renowned crypto exchanges, including Binance and Huobi. The new legislation is expected to attract further global crypto platform operators, further fuelling the growth of the sector.
Singapore's fintech industry is also attracting international players. For instance, iCapital Network, an alternative investing startup originally from the US, plans to open a new office in Singapore in H1 2021. Similarly, the founder of Expersoft Systems, Michael Bauer, announced his plans to open a new office in Singapore in 2021.
Expersoft Systems, a B2B2C wealthtech provider headquartered in Zug, is eyeing the Singaporean market, citing huge potential in the field of independent asset managers and multi-family offices. The company has recently gone live with the cloud-based AM-One Asia platform, a SaaS solution providing PM1 applications, outsourced cloud hosting, and back office support services.
Another local success story is StashAway, a digital wealth manager based in Singapore. The company rolled out its platform in the United Arab Emirates (UAE) in November 2020, becoming the first digital wealth manager to get an asset management license from the Dubai Financial Services Authority (DFSA) with retail endorsement. StashAway also secured a S$22.3 million (US$16 million) investment during its Series C in July.
Syfe, another digital wealth manager based in Singapore, recently closed a whopping SG$25.2 million (US$18.6 million) Series A funding round led by fintech-focused venture capital (VC) fund Valar Ventures.
Kristal.ai, an AI-powered robo advisory platform, also based in Singapore, announced a US$6 million Series A from Chiratae Ventures and Desai Family Office in January. The company plans to use the proceeds to expand further into the Asia Pacific (APAC) and the Middle East.
In the world of forex trading, Tradesocio provides a SaaS solution offering brokers a cloud-based social trading platform for information about business opportunities.
The growth of the wealthtech sector in Singapore is also reflected in the statistics. According to Statista, as of 2020, AUM in Singapore for the robo-advisors segment stood at US$1.06 billion. It's projected to grow by an annual rate of 25.3% to reach US$2.62 billion by 2024. Users in this segment are expected to increase from about 104,900 in 2020 to 192,500 by 2024, an increase of over 83%.
Lastly, the implementation of the Payments Service Act in Singapore in H1'20 includes regulatory requirements and a licensing programme for cryptocurrency exchanges, further solidifying Singapore's position as a global hub for digital assets, including cryptocurrencies. DBS, a Southeast Asian bank, is currently working on launching an exchange for digital assets, including cryptocurrencies.
In conclusion, Singapore's wealthtech landscape is a vibrant and dynamic space, attracting both local and international players. With its conducive regulatory environment, growing demand for automated financial advisory services, and a thriving fintech ecosystem, Singapore is poised to remain a global leader in the wealthtech sector.
