Fin+Tech Guide 2022

FIN+ TECH G U I D E

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content page GTI Media is the world’s largest careers and graduate recruitment publisher. Founded in the UK in 1988, GTI publishes and distributes more than 100 careers and recruitment products around the globe.

Introduction to Fin+Tech Guide 2022 Fintech 101 What is Fintech?

Types of Fintech Today Fintech Quick Facts Debunking Fintech Myths How Fintech is Changing the World

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11 12 13 14 15 16 17 18 19 20

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Joining Fintech What it Takes to Enter the Fintech Industry?

Opportunities in Fintech Entering the Fintech Industry

Without a Related Degree

28 29 30

Areas of Work in Fintech Application Developer Blockchain Developer Cybersecurity Analyst Data Scientist Data Specialist Financial Analyst Legal and Compliance Project Manager Quantitative Analyst Research Manager Wealth Manager

Design & production Allysha Puteri Harfaz, A’liah binti Abdul Rahim Advertising Ron Ong, Joey Ng, The GTI Media sales team Marketing & distribution Henry Ng, Aisyah Sani Publisher Isaac Hee

Understanding the Fintech Industry Fintech in Singapore Singapore as the Centre of Fintech

Innovation in ASEAN Digital Banking in Singapore Is Cryptocurrency Worth the Risk?

A Peak at the Fintech Industry at a Global Level

Chief Editor Elliyani Mohamad Ali Editor & editorial Sarah Si, Dawn Yip

Decoding Top Fintech Buzzwords Application Programming Interface Bitcoin Blockchain Cloud Cryptocurrency Ethereum Initial Coin Offering Non-Fungible Token RegTech Two Factor Authentication

GTI Media Singapore would like to thank everyone who has contributed to the gradsingapore Fin+Tech Guide 2022!

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GTI Asia Pte Ltd (Company number: 200301978M) 2 Sims Close #05-07 Gemini@Sims Singapore 387298 T +(65) 6294 6505 F +(65) 6294 1043 www.gtimedia.asia © GTI Asia Pte Ltd, July 2022 All rights reserved. No part of this publication may be reproduced by any means including, but not limited to, photocopying or storage in a retrieval system in any form without prior written consent of GTI. The views expressed in the articles are those of the authors and their publications, and do not necessarily imply that such views are shared by GTI. Whilst every care has been taken in the compilation of this publication, the publishers cannot accept responsibility for any inaccuracies, or for consequential loss arising from such inaccuracies, or for any loss, direct or consequential, arising in connection with information in this publication.

Introduction to Fin+Tech Guide 2022 F

intech, in all its complexity, attracts a range of different reactions and perspectives depending on who you ask. Some might hype it up as the “the next big thing”, while others dismiss it as simply another (yet sophisticated) way to scam others.

Regardless of opinion, it’s hard to deny that fintech has the potential to not only transform the way people make payments, but also shake up the way businesses now operate. On the other hand, this technology also poses new risks, with fintech companies becoming prime targets for rising cases of cyber-crime.

In short, fintech is complicated, and there’s a lot to take in. That’s where we come in.

The Fin+Tech Guide 2022 aims to provide a quick explanation on what fintech is all about, debunking its myths, and understanding its role in changing the world. Despite its boons and banes, fintech is making waves in almost every industry, and it’s important that new graduates and graduating students stay on top of industry trends to remain relevant and employable.

While this guide offers a quick overview of fintech, we hope that it’ll spark an interest in our readers to further explore the sector in depth, or perhaps even consider it as a career choice in future.

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Fintech 101 Global Fintech Market Value is Expected to Reach

$309.98 Billion at a CAGR of

24.8% Through

2022

Digital and Mobile Wallets will more than double their share of POS spend from 4% in 2019 to 9% by 2023

Preferred payment options: Apple Pay, Samsung Pay and PayPal

Popular Alternative Payment Methods 2019 ECOM Transactions

by Payment Method

Bank Transfer

Credit Card 56% Digital/Mobile Wallet 18% Bank Transfer 10% Debit Card 8% Charge & Deferred Debit Card 6% Pre-paid Card 1% Cash on Delivery 1%

FINTECH 101

WHAT IS FINTECH? Introduction to Fintech

+

FINANCIAL SERVICES

TECHNOLOGY

=

FINTECH

F

intech refers to the innovation and technology that provide modern alternatives revolutionising traditional financial products, thus creating new and better services for consumers and businesses.

The Rise of Fintech

1918

The Evolution of Fintech Where it all began

The world’s 1st electronic fund transfer

1967 1990’s

Barclays set up the world’s 1st automated teller machine

NASDAQ started world’s 1st digital stock exchange

- Online banking is introduced with the rise of Internet & e-Commerce - PayPal launched as world’s 1st online payment system

2009 Introduction of Bitcoin (followed by boom of cryptocurrency)

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Fin+Tech Guide 2022

1971

2010 - Mass market penetration of smartphones - Led to Google Wallet in 2011 & Apple Pay in 2014

now - Big Techs are dominating the fintech space - Internet banking has become the top choice for consumers - More fintech products are available (such as non-fungible tokens, also known as NFTs)

FINTECH 101

Artificial Intelligence Have you ever received a call from your credit card company after making rare multiple purchases in one day? That’s artificial intelligence (AI) at work analysing a person’s buying behaviour and triggering a notification if something contradicts their usual spending pattern. In summary, the use of AI in the financial industry is to cut down and optimise processes.

In addition to fraud detection, AI in finance is also becoming more common in risk assessment (by determining if someone is eligible for a loan), financial advisory services (to analyse a person’s portfolio and share the latest financial trends) and preventing cyberattacks (by boosting the company’s security).

Crowdfunding From donating money on platforms like GoFundMe for various causes to pledging your support for upcoming programmes via Kickstarter, these are all examples of crowdfunding. Also known as peer-to-peer lending, this is the practice of raising money for a project through the contributions of many people.

Due to how easy it is to set up on a variety of platforms along with multiple secure payment methods, crowdfunding has notably gained much popularity. This means a crowdfunding campaign can reach a large target audience anywhere around the world, as long as they have internet access. Instead of incurring high interest rates when businesses or persons take out loans at traditional banks, they have the option to source for investments or donations online, and often without meeting benefactors in person.

Fin+Tech Guide 2022

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FINTECH 101

Cryptocurrency Cryptocurrency is a digital currency that is secured by cryptography through computer code and blockchain technology. As cryptocurrency is not issued by a central bank, the network is completely decentralised. It’s a peer-to-peer system that allows anyone in the world with an Internet connection to send and receive payments.

One well-known example of cryptocurrency is bitcoin.

Machine Learning & Trading While the concept of AI is to simulate human thinking capability, machine learning is how a device builds on its intelligence. When it comes to the finance industry, machine learning allows the forecasting of financial trends, thus allowing consumers, banks and companies to have a more informed understanding of investment and purchasing risks earlier on in the process.

Payments Digital Banking Digital banking offers the same services as brickand-mortar banks, except it operates completely online without any physical infrastructure, such as a bank branch. This means customers can control their finances from their smartphones or computers without stepping foot into a bank. The ease of accessing digital banking also means the recent COVID-19 pandemic has accelerated consumers’ use of digital banking, even for those who aren’t digitally savvy.

In 2020, the Monetary Authority of Singapore (MAS) has awarded four successful applicants with digital banking licenses, including a consortium by Grab and Singtel, as well as Sea Limited, better known as the parent company of Shopee.

Investments & Savings When it comes to investment banking, one of the biggest challenges to efficiency is compliance.

This is where fintech solutions play a part through elements such as cloud computing, automation and AI, as well as the management of customer data. Ultimately, investment techs are platforms to allow investors to research and to invest in multiple financial assets.

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Fin+Tech Guide 2022

While electronic payment has existed even before e-commerce, such as bank transfers being the then-preferred system, various online payment gateways have since revolutionised the industry with the gaining popularity of online shopping.

Additionally, mobile payment transactions done through mobile wallets, digital authentication and QR codes have also become widely accepted as Singapore heads towards achieving a cashless society.

It goes without saying that if you’ve used PayNow, online banking, or Kickstarter, you’re a fintech user. This list captures only a snapshot of the types of fintech available, so imagine how influential and game-changing fintech is to consumers and businesses on a global level.

FINTECH 101

Fintech Quick Facts Fintech in Asia Pacific

1

bn 8 17

Expected market size by 2026:

$ US

4

2

2.1bn users of digital payments in Asia

Lending & Personal Finance to be the biggest markets in 2025

Singapore & Australia

3

5

Ranked 4th globally for how fast start-ups turn into unicorns

More than

81.2%

6

Expected average annual growth rate from 2020 – 2026

TRADITIONAL BANKING Modular & personalised products Targeted at individuals with limited capital Typically more lenient requirements Focuses on creating valuable customers experience

1,400 fintechs in Singapore

VS

FINTECH Rigid products Targeted at establishments with proven track records Complicated but specific rules & regulations Focuses on security & management of financial risk

Fin+Tech Guide 2022

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FINTECH 101

Debunking Fintech Myths MYTH Fintech will oust traditional banks

1

FACT:

Both fintechs and banks have their own positive characteristics that attract specific demographics. Experts believe that neither will oust the other, at least in the near future. Instead, fintechs and traditional banks will more often than not join forces to introduce hybrid products to customers, offering the best of both worlds.

MYTH Fintech comes with a lot of risks

2

FACT:

Yes, while cybersecurity is a big challenge in the industry, the use of advanced technology is fintech’s greatest advantage. Through integration of ever-evolving technology such as risk management tools and machine learning algorithms, fintech continues to massively improve its strength in security, and this will only get better over time.

MYTH Fintech is just a bubble

3

FACT:

Critics of fintech often say that it will simply be a temporary thing whose bubble will eventually burst in time. But that hasn’t been the case. Fintech is not just surviving, but thriving since its inception. Thousands of fintech start-ups have popped up all over the world (6K in Asia Pacific in 2021) and fintech services have a very impressive adoption rate (at least 67% in Singapore).

MYTH Regulations will stifle interest in fintech

4

FACT:

While fintech is often synonymous with being unregulated, individual governments are becoming more involved with the industry. However, most governments do see the advantages fintech offers, and thus there are increasingly more partnerships between government bodies and the fintech industry. It’s to the benefit of the governments to support fintech businesses and in turn, help to provide their citizens with more quality financial products.

There’s no end to the misconceptions of fintech, especially when the industry can be quite complicated to understand for many people.

But by debunking its myths and learning the truths, the fintech industry may become a less misunderstood subject.

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Fin+Tech Guide 2022

FINTECH 101

Elimination of the middlemen Traditionally, banks have always acted as middlemen between lenders and borrowers, charging high fees for their services in the process. With fintech, there is a rise in peer-to-peer lending platforms that provide business owners with quicker access to loans without the need for intermediaries. This is especially cost-effective for small and medium-sized enterprises (SMEs) that may not have the capital to comfortably pay for a bank’s service charge.

Adoption of online payments and banking As the most “mainstream” part of fintech, more customers now manage their bank accounts online and make payments digitally.

With some financial institutions still lagging behind, ad-hoc online payment platforms are taking the opportunity to make use of this gap and meet customers’ demand for convenience and automation.

How Fintech is Changing the World Importance of cybersecurity The growth of fintech can pose a serious risk, especially for legacy financial institutions. In early 2022, in the wake of a spike in SMS-based phishing scams targeting bank customers, Singapore announced a set of additional measures to bolster the security of digital banking. Every fintech platform needs to be equipped with sophisticated cybersecurity to combat fraud attacks and unauthorised account takeovers.

More robotic process automations From sending simple emails to complicated work reports, having an automated process reduces burden on humans, which in turn cuts the time taken to complete manual tasks, ultimately making the process cheaper. As such, more companies, especially banks, have automated their telephone customer service.

Proliferation of online shopping

It’s no secret that e-commerce is becoming a more popular option over brick-and-mortar stores for consumers. With online stores having lower overhead costs, more companies are placing more focus to grow their e-commerce businesses rather than setting up traditional stores. The proliferation of fintech adoption also means that the consumer shopping trend has followed suit, and has now permanently shifted.

In time, the impacts of fintech will be even more prevalent and far-reaching.

Fin+Tech Guide 2022

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Decoding Top Fintech Buzzwords Blockchain

lockchain Two Factor Authentication Non-Fungible Application Token Programming Crypt cUrrencY

Bit coin

Ethereum

Regular Technology

Interface Cloud Cloud Cloud Cloud Cloud

Decoding Top Fintech Buzzwords

Application Programming Interface Sign Up

Welcome Sign Up

Login Email

Welcome Email

user@emailaddress.com

Name

Login. . . . . . . . .

Password

Email

user@emailaddress.com

Password

.........

Email

Date of Brith

Name

Password

Date of Brith

Log in

Sign Up! Password

Don’t have an account? Sign up

Log in

Sign Up!

Don’t have an account? Sign up

A

pplication Programming Interface (API) is a software intermediary that enables two applications to communicate with each other. For example, you might be familiar with the concept of signing into websites or apps using your existing social media accounts, such as Facebook, Google or even LinkedIn. However, your data isn’t actually accessible to them – rather, the API helps to authenticate the user with each login.

APIs allow for sharing of sensitive data and exposing practical business functionality between applications and devices. Due to this benefit, API is essential to everyday life, and can be found when users visit e-commerce websites, browse a social media app and even when they play a mobile game.

Types of Financial Services How API is implemented Payments in e-Commerce

Allows customers to make purchases through online platforms by connecting credit card companies with the e-commerce platform

Banking

Banking apps usually connect with 3rd party APIs to provide services, like credit score updates

Accounting

Integrate accounting capabilities with other key business processes to improve efficiency, like connecting expense submissions with payable function

Financial Market Data

Offer digital services that stream real-time financial and investment data from various sources

Pros

Cons

Shortened time to market

Traditional banking systems not prepared for API integration

API Reduced development costs

Existing security concerns

More resources to focus on innovation instead of repetitive development tasks

Some APIs are limited in performance and function Fin+Tech Guide 2022

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Decoding Top Fintech Buzzwords

B

itcoin is a cryptocurrency. It’s digital cash that allows for secure peer-to-peer transactions on the Internet without the need for a bank, government or any institutions. This is different from services like PayPal, which relies on traditional systems such as existing debit or credit accounts to transfer funds, even though it’s based on a digital platform.

Today, Bitcoin is the world’s most popular cryptocurrency.

That being said, there’s actually a limited number of Bitcoins, with an estimated 21 million Bitcoins programmed into the coin’s code.

As such, it’s projected that the last Bitcoin may be mined in 2140.

How does Bitcoin work?

Mining

1

When generating a request to transfer a Bitcoin value to another device, a Bitcoin client software is required in order to create a

3 4

During the mining stage, transactions are gathered in data blocks and randomly assigned a header Miners compete to match the block’s header with a nonce (an arbitrary number used only once) to get a hash (a short alphanumeric code)

- virtual wallet (which creates a set of keys, a private and public key) - private key (used as proof of ownership of a blockchain address and to spend funds) - public key (transactions are sent to this key)

2

The request appears on the Bitcoin network, where “miners” will pick it up to process the transaction

5 6

Each hash accepted by the Bitcoin network is rewarded with Bitcoins The hash values are then added next to the header, creating a blockchain

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Fin+Tech Guide 2022

3 pieces of Bitcoin trivia

Transactions

Who created Bitcoin?

Satoshi Nakamoto is the identity associated with the creation of bitcoin.

That being said, no one really knows, not even if they worked alone or with several others.

1st Commercial Transaction with Bitcoins?

In 2010, Laszlo Hanyecz paid 10,000 BTC for two Papa John’s pizzas, which cost about $41.

Which country uses Bitcoin as legal currency?

In 2021, El Salvador officially made Bitcoin a legal currency in the country.

Decoding Top Fintech Buzzwords

Blockchain

B

lockchain is a decentralised database that allows users to securely transfer currency and information within seconds. Put simply, it’s a digital, public ledger. As the name suggests, blockchain is a set of blocks or groups of transactions that are chained together and distributed when requested.

Blockchain transactions are secured by cryptography and open to the public. Every block is an important part of the sequence and cannot be changed without the block being invalid.

How blockchain works

1

Jane wants to send money to John.

2 3

6 The block is added to a chain, creating a permanent record.

To maintain privacy, addresses are typically different for each transaction. Each address is linked to a public key and a private key.

The transaction is represented online as a block; this is how the term blockchain came about.

4 The block gets distributed across a network.

The network (with the help of “miners”) verifies that 5 the transaction is valid.

7 Jane makes her payment to the given address. She signs the transaction with the private key of her own address and adds her public key to the transaction.

Jane’s transaction is now complete.

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Fin+Tech Guide 2022

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Decoding Top Fintech Buzzwords

C

loud computing is a service where the provider rents out resources digitally. This can range from ad-hoc data storage (such as Google Drive and Dropbox) to comprehensive computing solutions (such as Amazon Web Services).

About 22% of all applications within fintech are running on the cloud, with this figure continuing to grow at a steady pace.

3

1 Self-service applications There’s an increasing need for individuals and companies alike to be able to access and manage their finances remotely. This is where cloud-based self-service applications come in to meet this demand at a relatively rapid pace.

Data management The cloud allows users to gather and store large amounts of data in a secure manner. Data can be accessed at any time without the need for IT specialists (but correct credentials are still required).

2

Enhanced security services With the right measures, cloud technology is reasonably secure and comparable to traditional IT infrastructure setups.

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Fin+Tech Guide 2022

4 Scalability and flexibility Fintechs are generally required to grow with their platforms. They need to scale easily, which is where cloud comes in handy. Using a traditional banking structure can be expensive and time-consuming to scale up.

Decoding Top Fintech Buzzwords

cryptocurrency Characteristics of Cryptocurrency Irreversible Once confirmed, a transaction cannot be reversed. There’s no safety net whatsoever.

C

ryptocurrency, also known as crypto, is a tradeable and decentralised digital asset. It’s a unit of currency that uses encrypted data strings. Cryptocurrencies are created using cryptographic techniques that enable people to buy, sell or trade them securely.

Recently, more than 19,000 different cryptocurrencies are traded publicly, with the most notable type being Bitcoin. The total value of all existing cryptocurrencies in May 2022 was about US$1.7trn, having fallen substantially from an all-time high of more than US$2.9trn late in 2021.

Private & Confidential None of the transactions or accounts in cryptocurrency are connected to real-world identities. Transactions are processed through addresses (usually made up of random chains of around 30 characters).

Global & Instant Transactions are processed nearly immediately and are confirmed in mere minutes, regardless of the physical location.

Secure Only the owner of the private key can send cryptocurrency through a public key cryptography system.

Open to all Anyone can use cryptocurrency. Through a single piece software that can be freely downloaded, anyone can send and receive Bitcoins.

Fin+Tech Guide 2022

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Decoding Top Fintech Buzzwords

E

thereum is an open source, decentralised blockchain-based platform that has smart contract functionality (i.e. code that is stored on blockchain for others to interact with). Ethereum is used primarily to support the second-largest crypto, Ether.

It runs the Ethereum Virtual Machine, a supercomputer that combines the computing power of all of the nodes in the network. This computing power is used to run the smart contracts on the blockchain by charging a very small transaction fee in exchange for the computational power used. This fee is called ‘gas’ and is paid in Ether. This exchange is why Ether isn’t really seen as a crypto. Rather, it operates as the oil to run the network.

Ethereum

vs

Bitcoin

Transactions on Ethereum network may include executable code

Data affixed to Bitcoin network is generally only for keeping notes

Will be using proof of stake system by 2022 (will make Ethereum more scalable, secure and sustainable)

Uses the usual proof of work system (a consensus protocol for all information recorded on the blockchains)

Intended as a platform to facilitate smart contracts via Ether Generally compared to digital silver as it’s the 2nd largest cryptocurrency by market cap

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Fin+Tech Guide 2022

Considered currencies

an

alternative

to

national

As the 1st cryptocurrency, Bitcoin is usually compared to digital gold

Decoding Top Fintech Buzzwords

Initial Coin Offering

S

imilar to an initial public offering, an initial coin offering (ICO) is crypto’s equivalent for a company looking to raise money to create a new coin, app or service. Investors can buy into an ICO to receive a new crypto token issued by the company. This token may be related to the product or service that the company is offering, or it may just represent a stake in the company or project.

How ICO works

Investors

Cryptocurrency

Investors receive and hold project tokens Project offers tokens in the ICO

Total raised during ICO

Funding for project

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Decoding Top Fintech Buzzwords

NonFungible Token

A

nything that can be converted into a digital form, from drawings, videos or even a social media post, can be minted a non-fungible token (NFT) and traded online. Backed by blockchain technology, it gives users complete ownership of a digital asset. Unlike cryptocurrency where one Bitcoin always has the same value as another bitcoin, being non-fungible means the value of one NFT is not equal to another.

NFT Pros

Cons Cons Unstable & decentralised Value of NFT is dependent on market demand and not regulated by any banks or central authority, making it extremely volatile

Unique Only has one owner at a time

Verifiable Blockchain technology can prove an individual ownership

Emerging technology The public has yet to adequately understand how NFTs work

Transferable Can be traded freely

Complex Building decentralised applications for NFTs can be difficult and time-consuming

++

NFT

Secure Ensures fraud protection

NFT

NTF NFT

++

NFT

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Fin+Tech Guide 2022

Decoding Top Fintech Buzzwords

Regulatory Technology

A

ccording to MAS, regulatory technology (RegTech) is the use of technology to enhance risk management and regulatory compliance in financial institutions. Simply put, this refers to any technology that ensures that companies comply with their regulatory requirements. Through modern technologies, such as cloud computing, AI, big data and others, RegTech minimises the risk of human error by automating the processes.

Short-term

Long-term

Simplifies and standardises the compliance processes, leading to reduced costs

When the financial health of institutions is protected, market stability may increase

Sustainable and scalable solutions

Having excellent governance leads to good reputation

Uses advanced data analytics to access regulatory information

Easy and efficient regulatory reporting to authorities

Adopts easily to short-notice regulatory requirements

Allows for forecasting analysis

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Decoding Top Fintech Buzzwords

Two-Factor Authentication

A

lso known as 2FA, it’s a security system that requires two specific types of identification to access something online, such as your bank account. Typically, when you sign into your account, you need to manually key in a password or pin number. However, with 2FA activated, you’ll also have to follow-up with a secondary form of identification. This can range from a one-time password sent to your smartphone, to using facial recognition or fingerprints. This adds an additional layer of security that prevents unauthorised users from accessing your account with just your password or pin.

How 2FA works

User

Username

1234

Phone 123-456-7890

AUTHENTICATED ****

REGISTER

1

2

User logs into their account using their username and primary password

20

3

A one-time password (OTP) is sent the user’s mobile phone

User keys in the OTP as the 2nd form of authentication before granted access to their account

Pros

Cons

Enhances security by making it more difficult for unauthorised access

Longer login time

Protects networks from hacking attacks

Requires 3rd party software/ hardware to implement 2FA

Has a multitude of 2FA systems to choose from

Requires ongoing maintenance

Fin+Tech Guide 2022

Understanding the Fintech Industry 2bn

US$50bn 500+ is invested each year in FinTechs

2/3

of financial transactions are now made online

US$50m is sufficient to create a new digital bank

unbanked people could be addressed through mobile

new FinTechs are created every year

40%

of existing banking roles will be disrupted by machine learning

30%

increase in operating profits could be gained by banks

20bn

smart things may become the next banking ‘customers’

US$5.6bn was raised by blockchain startups through ICOs in 2017

Understanding the Fintech Industry

Fintech in Singapore A Gist of

2021

2022 Forecast

A Snapshot of Fintech in Singapore SG Fintech hits 5-year high at 191 deals transacted

37% increase in deals transacted compared to 2020

Total transaction value in SG surged by 59% year-on-year at US$3.94bn

Record levels of investment in cryptocurrency and blockchain with US$1.48bn transacted across 82 deals

Majority of the cryptocurrency and blockchain deals for Singapore in 2021 went towards software and underlying infrastructure, rather than services

Successful launch of SG PayNow and Thailand’s PromptPay cross-border payment system

Standard Chartered signed a 10-year strategic partnership with Atome Financial, the operator of one of the largest BNPL platforms in Asia

The market’s largest segment will be Digital Payments with a total transaction value of US$18.05bn

PayNow will introduce latest cross-border partnerships (i.e. India’s UPI and Malaysia’s DuitNow)

Debut of digital full banking services for Sea Ltd and a consortium owned by Grab Holdings and Singtel

The Future By 2024, e-wallets are expected to overtake credit cards and account for 27% of all online purchase transactions

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Fin+Tech Guide 2022

DBS will be launching cryptocurrency trading for all its retail investors5 years

Buy Now, Pay Later is expected to be the fastestgrowing payment type globally over the next 5 years

Understanding the Fintech Industry

Singapore as the

Centre of Fintech Innovation in ASEAN

I

n its bid to become a smart nation in the future, Singapore was already a hotbed of innovation for a variety of sectors, particularly the science, technology, engineering and mathematics sector (STEM). In addition, it was also deemed a popular spot on the map for countless financial MNCs and technology and innovation companies.

Then fintech companies came knocking. To cater to their needs, MAS created FinTech Innovation Labs, an initiative to nurture robust ecosystems of innovation in the financial services sector, and the FinTech Regulatory Sandbox in 2016 to give these companies a safe environment that helps them control risk.

Now, with a 52% market share in Southeast Asia, Singapore has become both the fintech capital of ASEAN, as well as the centre of fintech innovation in the region.

2019 Great growth While interest in fintech here started late, it soon escalated quickly, with local consumers quickly picking up the trend. Additionally, not only have homegrown fintech firms started emerging, foreign fintech companies have also moved into the country to take advantage of the business environment.

With this, Singapore prides itself as a hotbed of innovation opportunities.

2020

Compared with less than 100 fintech firms in 2016, that number in Singapore has since jumped to 600 at present. Moreover, both banks and insurance companies are currently in various stages of digital transformation, with more than 30 of them having innovation labs in Singapore. Fintech investments quadrupled to US$453m in the first half of 2019, placing Singapore just behind China and India in the Asia Pacific region.

The pandemic

Steady adoption, innovation, growth and funding meant that when the global pandemic hit Singapore’s sunny shores in early 2020, the local fintech industry remained remarkably resilient in the face of falling investments.

The MAS also unveiled a $125m package in support of the fintech industry in April 2020, and initiated a further MAS-SFAAMTD FinTech Solidarity Grant of S$6m in grants for local fintech companies in May 2020.

2021 Further innovation

and beyond

Though fintech was originally heralded as the solution to gaps found in financial services, innovation in Singapore will ensure that solutions will become more specialised.

For example, green fintech is currently being developed, targeting sustainability in the field of fintech. This project was first launched by the MAS in 2019 with the Green Finance Action Plan.

Fin+Tech Guide 2022

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Understanding the Fintech Industry

The COVID-19 pandemic has acted as a catalyst for fintech adoption in Singapore, driving demand for digital banking capabilities.

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A Quick Snapshot

PayNow, Singapore’s peer-to-peer (P2P) fund transfer service running on the Fast And Secure Transfers (FAST) instant interbank payment rail, saw individual registrations rise by 1.6 million in 2020, bringing the total of registrations to 4.9 million. Meanwhile, PayNow Corporate registrations doubled to about 240,000.

The Breakdown

Between June and August 2020, customer sign-ups for DBS Bank’s Digibank mobile app rose by 216% year-over-year (YoY). Digibank counts 3.5 million customers. Meanwhile, Oversea-Chinese Banking Corporation (OCBC) has seen similar growth, reporting that the number of new SME accounts opened online grew 2.4 times in Q1 2020 compared to the previous year. United Overseas Bank (UOB) also saw a 406% YoY increase in the online purchase of its investment products in Q1 2020.

Coming Up

Singapore is preparing for the launch of its first virtual-only banks. The Grab-Singtel consortium, SeaMoney, Ant Group and the Greenland Financial Holdings-led consortium are all working towards becoming operational in 2022. Additionally, there will be more cross-border payments, such as PayNow being connected to India’s Unified Payments Interface (UPI) real-time payment system.

The Challenges

A survey by PwC shows that 99% of Singapore customers will keep their current primary bank accounts even after opening a digital bank account, and 67% will continue to use their existing account as their primary bank. Fully digital banks are currently not likely to displace customers’ primary bank.

Fin+Tech Guide 2022

Understanding the Fintech Industry

Is

cryptocurrency Worth the Risk?

I

n May 2022, cryptocurrency nursed large losses, with bitcoin pinned below US$30,000 and set for a record losing streak as the collapse of TerraUSD, a so-called stablecoin, rocked through the markets.

Stablecoins are digital tokens pegged to the value of traditional assets, such as the US dollar. However, prior to the downfall, TerraUSD de-pegged from the US dollar. From a 1:1 peg with the US dollar, the cryptocurrency subsequently fell to as low as nine US cents. One investor lost as much as US$2.3m in the crash. With such an unpredictable market, is dabbling in cryptocurrency worth the risks?

What are cryptocurrency risks?

1

2

Bubble risk

The values of cryptocurrency are highly unpredictable and speculative

Investors to suffer significant losses if the bubbles burst

3

No backing Without any backing from banks, governments or tangible assets, accountability is practically non-existent

But why is it still a popular investment?

- Transformative technology that could revolutionise a number of industries - Cannot be printed or seized, so cryptocurrency may also provide a safe store of value

Volatile market

4

Unregulated exchange platform If these platforms collapse or cease to exist, investors may lose entire investments held on these platforms

5

Hacking risk Cyber-attacks on cryptocurrency and digital wallets are becoming increasingly common

Fin+Tech Guide 2022

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Understanding the Fintech Industry

A Peek at the

Fintech Industry at a Global Level

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hile 2020 was a rough year for most industries, the fintech industry in particular was able to weather through it relatively well, even with a few hits to investments. With a continued demand for low-cost fintech products and solutions, it ensured that the industry still continued with steady growth globally.

Still, as the global market continues to mature, an emerging trend is that major fintech players are now looking to develop and create advanced financial technologies to stay relevant and competitive. Another popular strategy is mergers and acquisitions. Here are some of these other global trends.

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Fintech will begin focusing more on consolidation and further development

Continued projected growth Fintech is presently the largest industry in the growth phase on a global level

Most stakeholders and investors will begin moving from seed funding to observing which companies will become truly profitable

The industry is expected to reach market value of US$324bn by 2026

Big mergers and acquisitions have already begun

It’s driven by the digital payment sector and infrastructure-based technology

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Maturation Technologies that initially jumpstarted the innovation process in fintech – such as machine learning and AI – are maturing There’s a need for new areas to innovate in Example: Predictive financial analytics in traditional financial institutions

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Consolidation

Expect failures

4

occasional

high-profile

Financial cycle Investor funds are now reaching the end of their lives Bigger companies are preparing for end of cycle and market crashes Major fintech companies have begun to release initial public offerings (IPOs) and acquire smaller companies

Global economy Recession in the wake of the COVID-19 pandemic means less funding for younger companies Bigger companies already in the industry still have room for further growth and expansion Demand can be traced to the drastic uptick of mobile app and website use habits and trends rooted in global lockdowns

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Joining Fintech

Collaborative and innovative environment Outlet for those seeking a creative challenge Tremendous career growth

Professional progression

Grow your skill sets

Attractive employment packages

Joining Fintech

What it Takes to Enter the

FINTECH INDUSTRY in Singapore

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t present, digital transformation is leading the charge in Singapore’s fintech industry. Translated, this means that most jobs available in the industry will be more digitally led, such as revolving around AI, machine learning and other relevant skills like coding.

Logical and critical thinking skills With the drive to continue improving mobile applications for consumers as well as products for financial institutions, these skill sets are in high demand.

Examples of logic-based skills include coding and programming, and an ability to identify and find solutions for pain points in products are good instances of critical thinking skills.

Legal knowledge or background One of the main reasons why legal knowledge is so sought-after is the introduction of new regulations regularly rolled out to protect both consumers and companies alike. A lesser known, but as vital, reason for this demand is cybersecurity. As cybercrime becomes more sophisticated, as do the programmes and firewalls designed to keep them at bay, or at least ensure that damage is kept to the minimum. As such, a strong background in legal matters is needed to pinpoint evidence of foul play, especially as records can be tricky to handle digitally.

Mobile application development skills Fintech is presently widespread among the younger generation, with the older generations being its next targets. However, due to a generally lower rate of techsavviness, getting older groups to adopt fintech can be a challenge. As such, graduates who are fluent not only in mobile app development, but also have a knack for user experience are often in high demand.

Skills in data mining, data science and statistics With fintech applications come big data, which can be mined for consumer data, which in turn can later be used in both user experience and product design. To read and interpret the data, though, graduates with backgrounds in data science and statistics are needed.

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Joining Fintech

Opportunities in Fintech

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f you’re passionate about technology, then joining the fintech industry may be well-suited for you, especially if you want access to and work with newer technologies.

According to MyCareersFuture, while the local fintech growth started in trade financing, presently, much of today’s growth has shifted towards fintech business management, wealth management, investment management and robo-advisory (i.e. robo-advisors that provide financial advice or investment management online with moderate or minimal human intervention). As such, there are plenty of job opportunities in this fast-growing industry.

IT security

- With almost 30% YOY increase in the average number of security breaches in organisations, the demand for specialist cybersecurity professionals is steadily increasing

Opportunity

As such, the corporate world is on the hunt for candidates to take up roles ensuring that their financial services and transactions take place in a secure environment.

Front-end developers & designers

- As the industry involves a lot of interfacing with computers and mobile apps, the front-end of apps is critical to ensure that it’s both user-friendly and accessible to the masses

Opportunity

Roles such as UX designer, user interface (UI) designer, digital project manager and digital product manager are in high demand to ensure maximised front-end usability.

Programmers

- Programming skills are crucial when it comes to building new apps, creating forecasting models, developing trading algorithms, and tools for customers - Typically, the highest salary earners in fintech are developers

Opportunity

Graduates with in-demand skills, such as specialising in algorithmic programming, and candidates with past experiences such as in full-stack development (working with data, servers and systems engineering) can easily enter the fintech industry.

Data analysts

- Data analytics is crucial in driving valuable insights and predicting customer behaviour

Opportunity

Candidates with knowledge in data analysis are highly sought-after, as fintech companies continue to focus on enhancing their offerings and capabilities.

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Joining Fintech

Entering the

FINTECH INDUSTRY Without a Related Degree

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aving a degree in IT, finance or business is usually required in order to enter the fintech industry. But what if you don’t have one, but still want to join this industry anyway?

In short, while it might be a little harder, it’s not impossible for you to do so. After all, knowledge can be learnt on the job, but having the right traits or attitude, such as being passionate, motivated and committed, is an asset that can make you seem valuable to a fintech employer.

So don’t think along the well-trodden route of financial modelling and analysis, but instead bank on the other skills and competencies companies need to succeed that you can offer. Here are the ways you can show prospective employers you’re a good asset to them.

Take up related courses

You can consider taking intensive courses on fintech, which are offered on platforms like Coursera and the Centre for Finance, Technology and Entrepreneurship (CFTE).

These courses typically impart valuable skills vital for a career in fintech, much like financial modelling.

Quick tip

Although these courses can be quite expensive, they don’t require a long-term commitment, and can be completed anywhere between 10 weeks to a couple of months.

However, due to the intensity of the course, you’ll likely want to have a solid understanding of financial concepts in order to best benefit from the course.

Pick up a related internship or volunteer work

Even though landing an internship of your choice might be tough in these times, it’s still one of the best ways you can work towards a full-time job in fintech. A number of fintech employers draw new hires from the ranks of their interns, so if you manage to score an internship, leave the best impression you can to better your chance of being converted.

Quick tip

If you’re considering volunteer work at a nongovernmental organisation (NGO), register for finance roles. While you may not be allowed to handle everything on the job, by helping out with the financial aspects of running an NGO, or shadowing a professional there, you’ll definitely pick up a thing or two!

Gun for non-technical roles

Roles in fintech aren’t just limited to IT and finance roles. You can also apply for non technical and non-financial roles in the industry, such as project management and relationship management.

Quick tip

If none of these roles appeal to you, there are jobs in the legal and compliance side, as the industry continues to grapple with new regulations. Roles are also up for grabs in sales and marketing, as well.

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Fin+Tech Guide 2022

Areas of Work 58%

Innovation ability

Solid technological background

39%

Top Roles around Fintech

42% 15% 9%

Big Data Cloud Computing Information Security

45% Strong business sense

Areas of Work

Applications designer

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ost application software are written for unique operating systems, such as Windows, iOS and Android. As such application developers are versed in at least one of these systems, and create a variety of apps based on them – from graphics software, office suites and apps on your mobile phone.

The resulting literal millions of apps on the market today, from banking and budgeting apps to music and videostreaming apps, help people perform specific and daily tasks, consume content, link up with brands and network with others.

While app developers can normally be found in small- to medium-sized enterprises (SMEs) to MNCs, they can also be found freelancing for clients. In

these roles, they may be found working with other software experts, data scientists and graphic artists to create and develop apps.

Responsibilities The main responsibility of an app developer is to create and programme apps to meet public need, starting with developing prototypes all the way to the final product. In order to meet client or employer demand, they’ll need to be able to code within given timeframes, which also includes testing for and fixing bugs before the launch date. These developers also create updates and patches for existing apps in the market as well. Moreover, some app developers create handbooks and documents that detail an app’s design and code, which

can be used among other developers as well.

Skills Needed Ability to work in teams Analytical skills Attention to detail Communication and interpersonal skills Creativity Strong understanding of coding languages

blockchain developer

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n top of creating secure blockchain systems, blockchain developers are also responsible for developing application features and interfaces, as well as ensuring that these platforms are maintained for both the system and clients. Moreover, with the rising rate and complexity of cybercrime, they also need a solid understanding of cybersecurity to guard against hacking attemptings.

As the industry has been rapidly growing, demand for blockchain experts is soaring. In 2020, it was considered the most in-demand skill by employers!

document blockchain development processes. As all these responsibilities rely on technology, it’s crucial that blockchain developers keep with trends, as well.

computer science

Skills Needed

Understanding of platform interoperability

Communication and

Working knowledge of

interpersonal skills

cryptography

Knowledge of blockchain security, architecture,

While creating application features and interfaces, blockchain developers also need to determine blockchain functionality and technology needs.

While doing so, they also need to

protocols and platforms

Fin+Tech Guide 2022

thinking skills Strong understanding of

Responsibilities

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Problem-solving and critical

Knowledge of data structure

Areas of Work

cyber security analyst

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s technology grows more sophisticated, so have the means of cybercrime, with hackers on the rise utilising more advanced techniques to get to sensitive data. As a result, the demand for cyber security analysts has rapidly increased as well.

Most companies look for applicants with degrees in information technology (IT), or related fields. However, this can be bypassed by gaining experience through entry-level roles and certifications.

Responsibilities The main role of cyber security analysts is to safeguard a company’s network and computer systems from cyberattacks.

Part of this effort includes deploying

cyber security solutions (such as spam protection and firewalls), generating and compiling safety reports for review, as well as continuously developing more efficient security practices. Some analysts may even conduct cyberattack simulations in order to find gaps in existing security measures, and work towards improving them.

Other responsibilities include keeping up with IT trends, developing contingency plans, reporting security breaches, managing and updating software and security features, reviewing suspicious activity and implementing protection and security measures and controls.

Skills Needed Able to understand hackers’ mindsets Penetration testing Project management Strong knowledge of operating systems Strong knowledge of programming languages Understanding of computer networks

data scientist

D

ata scientists are often referred to as the infantry of the data analytics industry, placed at the forefront of companies – analysing, processing and compiling data for the company’s usage, which in turn is utilised for future action plans. As a result, those looking to take on this role requires knowledge in a variety of disciplines, such as computer science and statistics.

Although the role can be quite general, due to the wide range of skills associated with data science, some companies prefer some skills over others.

Demand for data scientists is still on the rise, due in large part to government support. In 2017, the Singapore government set aside more than S$80m under the SMEs Go Digital

Programme to help local businesses with more advanced needs, such as data analytics and AI, thus boosting the job market.

Responsibilities While focus on big data isn’t standardised across all industries, it plays a vital role in fintech. As such, one of the most important responsibilities of a data scientist is knowing how to read and find patterns in data, in order for their companies to anticipate consumer needs.

This has to be done in the most efficient way possible, as data often comes in messy and unsegmented datasets, and needs to be organised into usable information for companies to act upon.

Skills Needed Data analysis Data visualisation Experience in handling datasets Knowledge of how to interpret big data Strong understanding of tools used on big data

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Areas of Work

Data Specialist

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lthough data specialists are almost exclusively found in IT departments in large companies, they’re becoming a common sight in smaller fintech enterprises too. This is typically attributed to their expertise in analysing data for company use, as well as storing and retrieving it for company use.

Another crucial responsibility for data specialists is to regularly perform data integrity and quality audits, as well as submit reports on them.

Knowledge of data analytics and computer science Solid communication and

Skills Needed

Responsibilities

Able to read, interpret and

As data normally comes in multiple formats, data specialists typically create digital conversion programmes that are used when storing and retrieving data on secure databases. Furthermore, they also maintain these programmes, uphold their security and troubleshoot any storage issues when needed.

ensure data is accurate Able to work independently

interpersonal skills Strong understanding of data storage and retrieval systems Understanding of computer system

Analytical and problem-solving skills

Financial Analyst

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here are a variety of financial analysts in fintech, from those in investment banking to equity research. However, regardless of the path you take in this role, it’s important to know that you’ll need a degree in either economics, finance or mathematics.

As financial analysts are also in charge of the financial planning and analysis of an organisation, they need to be able to determine and pinpoint how to best use resources to realise business goals. They typically produce regular financial reports with data, and work with the entire finance team to assess and evaluate business performance. From there, they develop financial strategies.

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Responsibilities Financial analysts generally gather data, both current and past, for analysis.

From there, they identify trends, develop strategies and generate reports to be presented to stakeholders.

Other responsibilities include developing financial models and forecasts to create long-term plans targeting long-term plans for company growth. On occasion, they also use the trends and forecasts developed to explore opportunities their company can pursue for profit.

Skills Needed Ability to explain financial concepts clearly and simply Analytical skills Communication and interpersonal skills Organisational skills Problem-solving skills

Areas of Work

Legal and Compliance

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s technology continues to advance, so do legal and compliance laws, especially as issues become more complex as companies grow. As a result, roles in this department are highly emphasised, especially as there is room for much growth in the fintech sector.

It’s crucial for companies to maintain compliance, lest they receive punishment via fines, censure or even potential jail time, and even with all there, they also stand to sustain damage to their reputation as well. As such, it’s up to legal and compliance officers to ensure that they’re well-versed in all of the current regulations and understand what applies to their company.

Moreover, as compliance requirements often differ by country and regions, evaluating legal compliance, especially for MNCs can be challenging.

Responsibilities Legal and compliance encompass a great many things, from protecting employees to hiring and benefits.

It also covers the way a product or service can be marketed and sold.

Thus, practitioners need to ensure their companies are compliant with regulatory and government bodies, as well as ethical standards and laws.

To do this, legal and compliance employees need to keep up-to-date with regulations involving business IT, technology advancements and developments.

Skills Needed Communication and interpersonal skills Creativity Critical thinking Integrity Problem-solving skills Solid organisational skills Strong understanding of regulatory guidelines and policies

Project Manager

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roject management can be complex – project managers are typically responsible for the dayto-day management of projects and tasks, from its initiation to completion.

Moreover, they are usually involved in all six core aspects of the project – finance, quality, risk, resources, scheduling and scope, as well as having to work towards the desired goals within a budget and set time frame.

for advice on how to solve a recurring issue or get answers to a new question.

Because they can also anticipate such problems and quickly dispense with advice, they’re occasionally moraleboosters as well.

As they always take responsibility for projects and monitor them from start to finish, project managers also serve as communication points for stakeholders.

Skills Needed Able to work in a team Accountability Adaptable and flexible Attention to detail Excellent communication

Responsibilities

skills, both written and verbal

Due to the diversity of their work, no one day is the same for project managers.

Problems are ever-changing, and teammates usually consult them first

IT skills Leadership skills Solid interpersonal skills

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Areas of Work

Quantitative Analyst

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inancial securities are becoming increasingly complex, and demand is growing for specialists who understand the models that price the securities in-depth, and are able to generate profits and reduce risks from them.

Due to the challenging nature of their work – having to blend finance, maths and programming skills seamlessly – quantitative analysts can command high salaries. On the flip side, they also tend to require a lot of hours. As a result, there will be little work-life balance.

Responsibilities Quantitative analysts, or “quants”, are considered the rocket scientists of the financial world. They apply statistical and mathematical methods and models to financial and risk management problems, and can even be found developing complex models that firms use for decision-making for investments!

On top of these responsibilities, quants also identify profitable trades and create pricing strategies for their companies.

Skills Needed Advanced computer programming skills Data mining and analysis Solid financial background Strong knowledge of mathematics and statistics Strong numeracy skills

Research Manager

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lthough the specific duties of a research manager can vary from assignment to assignment, they’re always in charge of a few things. Namely, they oversee the planning, organisation, coordination and execution of research projects. In other words, research managers are the ones who put together research teams, manage budgets, supervise progress and present findings to stakeholders.

Responsibilities As research projects often have to adhere closely to timelines, it falls to research managers to periodically track the project’s progress and report to management and stakeholders.

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Moreover, research findings have to be presented to them as well in an easily understandable manner.

On occasion, they may also be the ones to draft proposals for research projects that have been assigned to them, while identifying potential areas of research and pitching those ideas to management as well. And ultimately, regardless of the type of company and what they’re working on, they’re responsible for selecting the research methodology and techniques to be utilised for a project.

Skills Needed An eye for detail Able to quickly pinpoint challenges Analytical skills Excellent interpersonal skills Excellent report writing skills Negotiation skills Problem-solving skills Solid communication skills, both oral and written

Areas of Work

Wealth Management

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ith fintech now present in nearly all aspects of daily life, it’s not surprising that high-net-worth individuals are taking advantage of the convenience. Because this area of work involves a holistic approach to all parts of an individual’s financial life, a client usually only requires one single wealth manager to coordinate their financial needs, including asset management.

Responsibilities Wealth managers can typically be found providing high-net-worth individuals with professional services in investment advice.

They also have other responsibilities, including offering financial advice, banking, accounting and tax services, retirement planning, and legal or estate planning.

Other duties wealth managers engage in are managing investments, and even buying and selling stocks on the market on a client’s behalf.

Good presentation skills Negotiation skills Problem-solving skills

Skills Needed An eye for detail

Solid knowledge of wealth management Strong mathematical skills

Able to explain complex concepts simply Analytical skills Excellent communication and interpersonal skills

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Fin+Tech Guide 2022

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