Singapore reigns at the top of Southeast Asia’s high finance banking industry. It is one of the key factors which boosted the country’s economy.
Furthermore, Singapore is also recognised as one of the 14 countries with the safest banks in the world. And, three of the ASEAN region’s largest banking institutions, namely: DBS Bank, OCBC Bank, and United Overseas Banks, operate in this country. The total assets of these banks sum up to approximately 1 trillion USD [Global From Asia].
This means that Singapore has a promising banking industry which makes it more attractive to investors.
Trends in Singapore’s Finance and Banking Industry
Singapore has a reputation for having a secure and updated banking system. It is one of the primary reasons why many entrepreneurs are confident in putting their trust in Singaporean institutions.
Ever at the forefront of finance, the country’s financial authorities regularly release guidelines to keep up with the latest issues facing the industry [ZD Net]. The latest was the Monetary Authority of Singapore’s (MAS) update on e-payment user protection which was released on April 25. 2019.
Under the new rule, banks are expected to notify clients on all banking transactions which will help clients to monitor unauthorised e-Payment transactions [MAS].
The MAS is even making preparations for future industry-disrupting technologies. That is why when a new financial trend emerges, you can be sure that the country’s top banking authorities are paying attention to it.
Here are the top trends in Singapore’s banking industry.
First Cross-Border Crypto Exchange
No one can deny that cryptocurrency has disrupted the investment and banking institutions. Since Bitcoin gained significant popularity, similar digital currencies emerged across different platforms. This billion-dollar market, however, is highly volatile [Forbes].
Its value is based on fluctuating market demand. In addition, few notable banking institutions accept this currency as a form of payment. As a result, many view cryptocurrency as a high-risk investment.
Despite this, Singapore’s banking authorities still see the potential in this market. That is why the MAS and the Bank of Canada conducted the first cross-border cryptocurrency exchange with Canada. This technology could introduce a faster and safer system to trade digital currencies.
Foreign Exchange Trading Engine
According to Asian Banking and Finance, the Standard Chartered Bank (StanChart) is planning to launch a foreign exchange e-trading and pricing engine in Singapore by Q1 2020. Once implemented, this technology will be capable of handling FX e-trading of 130 currencies and more than 5,000 currency pairs. It will offer commodities e-trading for precious and base metals.
In addition, this new platform also has a consistent pricing model to meet its Asia-based client’s hedging requirements. It is expected that this system will allow for a more streamlined trading process for high finance markets.
Unified Mobile Payment System
When it comes to capital ventures, FinTech start-ups can reach previously inaccessible customers while banks have the infrastructure and licences to operate. Payment processing remains a challenge for companies.
This explains Singapore’s financial ecosystem. The Singapore Quick Response Code (SGQR) seeks to create a unified mobile payment system between banks and start-ups [Asean Today]. This will make the collaboration between the two institutions more streamlined, and promote the growth of start-ups to move beyond payment processing and into P2P lending and insurance.
Seek Corporate Service Advisory Solutions in Singapore
Singapore’s success can be attributed to its stable banking institutions and eagerness to adapt to new market trends, making it the ideal place for entrepreneurs and investors to venture into.
It can be challenging to navigate the country’s comprehensive financial guidelines if you are not updated with the latest financial trends. Thus, it would be ideal to seek sound advisory solutions from a trusted corporate service provider.
DesFran has a team of financial experts who can help you understand the current financial trends in the country. They can also provide solutions in terms of foreign bank account setups, start-up ventures, and investment opportunities.
Take part in Singapore’s financial industry by contacting DesFran today.
References
What makes the Singapore economy tick, guidemesingapore.com
The Banking Industry and the Major Players in Singapore, guidemesingapore.com
MAS, Bank of Canada use blockchain for the first time in the trial for cheaper, faster and safer cross-border payments, straitstimes.com
