Singapore's lucrative FinTech sector is set to grow, according to a new report from ACCA (the Association of Chartered Certified Accountants).
While FinTech's impact on finance and banking is proving to be revolutionary, rivals around the world struggle with regulatory challenges and political upheaval.
Singapore is positioned at the heart of global growth due to regulatory issues in the U.S. and Europe, as well as the potential disruption caused to London by the Brexit vote.
Singapore's flourishing FinTech sector may benefit as other markets face challenges that are providing some push-back to the fast growth of Fintech in earlier years.
"While Silicon Valley offers the U.S. banking industry a significant head-start in adopting new technologies, progress has been slowed through legislative and licensing hold-ups. Meanwhile, the potential for UK banks to lose their pass-porting rights following the vote to leave the European Union poses real uncertainty about the future of FinTech in London," said Joseph Alfred, Head of Policy & Technical, ACCA Singapore. "Singapore, on the other hand, is benefitting from a supportive regulatory framework and extremely high digital capacity, which means there is a potential for her to become the regional hub for Asia-Pacific and beyond."
The FinTech bridge
The FinTech bridge, or the co-operation deal signed earlier this year between the Monetary Authority of Singapore (MAS) and the UK's Financial Conduct Authority (FCA) can bring benefits to Singapore finance.
The report advises accounting entities in Singapore to consider harnessing the momentum of growth in the Fintech sector to expand accountancy services to support finance and banking sector.
This is logical as the plethora of rules facing FinTech companies presents an opportunity for finance professionals who can help with the specificities of compliance, audit and tax.
Professional accountants who understand the pulse of the moment are adapting to and seeing opportunities for expansion in FinTech.
"Understanding the intricacies of global best practices and adapting them for varying national contexts can set aspiring FinTech hubs on a course for success, and highly skilled accountants will be vital to that process," Ng Boon Yew, executive chairman, Raffles Campus and Chairman, ACCA Accountancy Futures Academy.
Sign up for CIO Asia eNewsletters.