How to set up a Fintech company in Singapore


Financial technology, or FinTech, is described as the technology used in the financial services industry. FinTech stands for financial technology innovation in financial services and financial products. PayPal is one of the first FinTech companies to utilize technology in money transfers, and it has effectively decreased the prices and time of international money transfers. 

With advanced mobile technology, big data, and analytics, the growing FinTech application has cut across many different business sectors in the financial service industry, ranging from lending to investment management to payments. FinTech is, in reality, changing the way financial service providers engage with their consumers by placing technology at the center of their offerings. Here are some FinTech examples: 

  • Artificial intelligence (AI) is a study of user data that can monitor and comprehend users’ behavioral patterns in order to anticipate future decisions. 
  • Bitcoin and Ether are two examples of cryptocurrencies. 
  • Insurtech is a term used to describe how technology has been used to improve the efficiency of the insurance business. 
  • Android Pay, for example, is a mobile payment application. 
  • Platforms that provide investment advice based on financial algorithms are known as robot-advisers. 

Singapore’s FinTech 

FinTech is one of Singapore’s flourishing industries, with significant backing and development in recent years. The Monetary Authority of Singapore (“MAS”), Singapore’s central bank, has announced a slew of incentives for FinTech firms, including investments of up to S$225 million (US$158 million) by the end of 2020 and the establishment of a FinTech Innovation Lab. 

The innovation center may be used by FinTech firms for office space, testing, and cooperation. Furthermore, the country’s financial industry (banks and financial service providers) embraces FinTech as supporting enablers that may assist improve financial service efficiency and accountability. 

The Singaporean government created the FinTech Office in May 2016 with the goal of assisting local and international FinTech firms in setting up shops in Singapore. The Monetary Authority of Singapore (MAS), the Economic Development Board, the Infocomm Media Development Authority, and Enterprise Singapore make up the FinTech Office, which is a virtual organization made up of several distinct government agencies. 

The FinTech Office serves as a one-stop-shop for FinTech businesses, advising them on government grants and programs and assisting them in staying in line with regulatory regulations. 

In Singapore, how is FinTech regulated? 

The business concept and activities of the FinTech sector are regulated. In other words, depending on your company incorporation Singapore strategy and activities, you may choose which laws apply to you. 

The following is a list of legislation that may be relevant: 

  • Banking Act – applies to companies that offer financial services via the internet, such as accepting money transactions. 
  • The Finance Companies Act applies to any company that takes fixed and savings deposits, as well as credit facilities. 
  • The Financial Advisers Act applies to any company that provides financial advice, organizes life insurance, or promotes collective investment plans. 
  • Insurance Act – applies to companies that use insurance; 
  • Moneylenders Act – applies to moneylending businesses; Money-Changing and Remittance Businesses Act – applies to businesses that exchange foreign currency and/or manage outbound payments. 
  • The Payment Systems (Oversight) Act applies to companies that provide stored value or prepaid wallet services. 
  • The Securities and Futures Act – which applies to businesses that, among other things, trade certain instruments, deal in securities, or manage funds in excess of a certain amount; the MAS’s anti-money laundering and terrorism financing standards; and the Personal Data Protection Act – which applies to businesses that collect, use, and/or disclose personal data of individuals in their operations. 

Incorporation of a FinTech corporation 

Unlike the complicated company incorporation Singapore procedure in the conventional banking sector, ACRA BizFile Singapore makes FinTech business registration simple and painless. The procedure of forming a FinTech company is identical to that of other businesses, and the cost of forming a company in Singapore is comparable. You must register your company incorporation Singapore entity with the Accounting and Corporate Regulatory Authority (“ACRA”), which you may do online using the BizFile+ website. 

The Monetary Authority of Singapore has issued FinTech regulatory sandbox guidelines 

The MAS released its FinTech Regulatory Sandbox Guidelines in November 2016 to promote the development and testing of new FinTech products in a controlled environment. The regulatory sandbox exempts FinTech businesses from some legal and regulatory obligations. They can test their innovative FinTech products and services in a production environment where the regulator agrees to relax certain regulatory requirements. Your company incorporation Singapore entity will leave the sandbox at the conclusion of the sandbox term, at which point it will be able to offer its financial service on a wider scale.

Bottom line

As a consequence of the Covid-19 outbreak, Singapore enterprises of all sizes had been tested, many had to modify their regular new company set up practices significantly. Many business owners have experienced a decrease in their company due to their current strategies. As a result of the downturn in the economy and the changing client expectations, they left the business. Those that remained nimble and altered their approach to the conditions might survive and even expand.

A firm that is ready to adapt its approach for new company set up administration may now be stronger and better than ever from the other hand. The world’s new digital approach is adopted by the leading new company set up processing firms. Innovative technologies may be used in the new company set up in Singapore.

By implementing an application that enables staff to enter their information about time and attendance, company incorporation Singapore operators may enhance the whole process and decrease mistakes. A mobile app for employees can also be included in the new company setup process in Singapore. This application may perform things like enabling employees to check and approve statements.

1 0
Article Tags:

Leave a Reply

Your email address will not be published.