Yahoo Finance Singapore ranks fourth on Savills’ FinTech Index after New York, London and San Francisco
Singapore’s high ranking comes as the city-state has established itself as Asia’s fintech hub (Picture: Albert Chua/The Edge Singapore)
SINGAPORE (EDGEPROP) - Singapore ranks among the world’s biggest fintech destinations, according to a report by Savills World Research. In its latest edition of Tech Cities — an annual research report that monitors leading cities in different tech sectors — released in May, Singapore is placed fourth in Savills’ FinTech Index after New York, London and San Franciso. The index ranks each city across various components, including the business environment, tech environment and talent pool.
Singapore’s high ranking comes as the city-state has established itself as Asia’s fintech hub. Savills highlights that the country annually hosts the Singapore FinTech Festival, which is the largest of its kind globally. It also recorded US$34 billion ($53 billion) in fintech-related venture capital investments between 2019 and 2022. In addition, Singapore’s fintech sector is bolstered by regulatory stability, with Savills pointing out that the Monetary Authority of Singapore has signed fintech cooperation agreements with central banks across the world. “As a regional financial centre as well as a hub for technology, Singapore has rightly earned its fourth-place position within our FinTech Index,” says Charlotte Rushton, an analyst at Savills Worlds Research.
New York’s top position in the index is attributable to its position as home to the world’s largest stock exchange. “With its intense demand for fintech innovation and the vast capital base investors have in one place, the city performs particularly well for its tech environment and deep talent pool,” Savills states.
London ranks second in the index, in addition to being the top European city on the list. The UK is home to the largest number of fintech companies in the world and saw the highest number of venture capital fintech deals between 2019 and 2022, Savills says. Citing data from Oxford Economics, the consultancy also notes that Singapore, New York and London account for almost 10% of the financial sector’s contribution to global GDP, underscoring the cities’ incumbent advantage in the fintech space.
Meanwhile, San Francisco and Silicon Valley rank third and fifth in the index, respectively. Home to innovative companies such as payment platforms PayPal and Stripe along with personal finance company Credit Karma, the cities are a testament to how tech hubs have used fintech to disrupt the financial industry.
The report highlights that elsewhere in Asia, despite a high penetration of fintech services in China, three Chinese cities — Shenzhen, Shanghai and Hangzhou — rank lower in the index. Savills attributes this to the recent tightening of Chinese government policy on the reach of tech companies, as well as lower venture capital funding among start-ups.
Savills notes that the fintech sector continues to impact not just the finance industry, but also workplace trends. In Singapore, fintech companies have been a boon, particularly to the flexible workspace sector, says Ashley Swan, Savills Singapore’s executive director for commercial leasing. “The collaborative and flexible nature of the spaces speaks to the fintech culture and their ‘start-up’ ethos, allowing firms to remain agile as they grow,” he adds.
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