The financial technology (FinTech) industry is starting to take over like no one could have predicted, completely reshaping and remolding the world of the financial markets in a way that is both exciting and unpredictable.
Financial technology has been around for quite a while now, ever since the very first financial computers and algorithms were designed to help major institutional investors better understand different movements in the market and how to best leverage the capital that they had available.
Today, however, in a crowded global market that hasn’t ever existed before – with new game changing technologies diving into the world of business and finance like never before – we are looking at an explosion in FinTech solutions that simply never existed previously.
According to the Monetary Authority of Singapore (MAS), Singapore banks stand to save over 10% when taking advantage of all that FinTech has to offer – but they can also be burnt by FinTech solutions if they aren’t adapted appropriately, too.
According to information coming out of the MAS, nearly 41% of Singapore banks have balances that are abandoning traditional channels, embracing everything that the FinTech community has to offer, and rolling out new FinTech solutions left and right.
The Monetary Authority of Singapore also believes that the rest of Asia could see huge advantages and major savings by moving more towards FinTech technology. Asia in general could see savings of 25% or more, and if crypto currency and digital payment processors really start to take off in the next five years or so FinTech payments could save anywhere between 20% and 50% of household consumption costs moving forward.
Interestingly enough, the average Singapore consumer is also moving towards FinTech solutions at an almost breakneck pace. 56% of those with traditional bank accounts in Singapore have already stated that they are at the very least interested in moving more towards a digital bank solution, and 41% of the banking community has already moved some of their money over to digital banks and FinTech solutions.
We live in the middle of one of the most disruptive times in human history right now.
New technology is changing the very fabric of our financial and business community in ways no one could have expected or anticipated, and just as soon as someone gets a handle on these new changes, even more new technology comes in and disrupts things even further.
Some in Singapore (and around the rest of the world, for that matter) worry that the FinTech community is going to start disrupting banks in a major way, even eroding the kind of bank income produced through traditional means and eventually weakening major banks. This could cause some serious instability in the financial sector, the kind of instability we saw all the way back in 2004/2005 as the financial world crumbled all over the planet.
It’s going to be interesting to see how things shake out going forward, that’s for sure. If we know one thing, however, it’s that the FinTech community and FinTech solutions aren’t going anywhere anytime soon.
About the Author
Morris Edwards is a content writer at CompanyRegistrationinSingapore.com.sg, he writes different topics like Ways to Save Money for Your Business, 10 Great Low-Cost Small Business Ideas, How to Get Started With Online Business: 5 Great Ideas and all topics related to Doing Business in Singapore. If you want to learn more about Company Registration in Singapore visit our website.
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