Singapore’s Fintech Activity Soars High in 2022, While Financing Level Dips Significantly

03/03/2023 12:58 • Blockchain Briefs • 77 views

It is reported that according to the recently released data, the activity level of Singapore’s financial technology industry hit a record high in 2022, but the financing level fell sharply. According to the data of FinTech Global Research, Singapore-based financial technology companies conducted a record number of transactions in 2022, totaling 232 transactions. However, from 2021 to 2022, the financing level decreased by 29% to US $2.4 billion. The average transaction size further decreased by 39% to US $10.3 million. The largest transaction was conducted by Amber Group, a digital asset infrastructure provider, which raised $300 million from the latest round of financing.

Singapore Fintech conducted 232 transactions in 2022

Analysis based on this information:

Singapore’s financial technology industry has hit a record high in 2022, with the number of transactions conducted reaching a new milestone of 232. However, this growth does come with a drawback as the financing level faced a sharp 29% decline, totaling US $2.4 billion. Additionally, the average transaction size fell by 39% to US $10.3 million. The data of FinTech Global Research conducted found Singapore-based fintechs experienced unprecedented activities, yet the decline in financing level is a concern to ponder.

The report underlines the fact that despite the decline in financing levels, the number of transactions continues to increase. This data indicates a redirection of Fintech companies’ business models to rely on other sources of funds to sustain the growth happening. With alternative funding means more closely being looked upon, it’s possible that the dip in financing will remain as companies look into other support options to sustain business growth.

Furthermore, the study also revealed that Amber Group, a digital asset infrastructure provider, conducted the largest fundraising transaction of $300 million, which accounts for 12.5% of the total financing raised by Singapore’s Fintech transactions. This news reveals that even with the decline in overall funding, individual companies are still able to secure vast amounts when necessary.

The country in itself represents a way forward for the Fintech industry and is expected to remain one of the world’s dominant players in the sector. The government has been actively providing support, financial, and otherwise, to aid the developing Fintech ecosystem. And with the number of transactions hitting a high, coupled with an estimated growth surge in the near future, Singapore’s Fintech sector is on it’s way towards a norm of sorts.

In conclusion, with the Singaporean Fintech industry experiencing a record number of transactions, there’s no doubt that the country is on track to revolutionize Fintech for the Southeast Asian community. However, it’s important to keep the sharp decline in financing levels into account to find better alternatives to keep the industry thriving. Companies need to find alternative means of financing, and if and when this is resolved, the future remains promising.

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Singapore’s Fintech Activity Soars High in 2022, While Financing Level Dips Significantly

Singapore Fintech conducted 232 transactions in 2022

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