94% fintech firms in Singapore planning to expand workforce: Report
A report by the Singapore FinTech Association and consultancy PwC reveals that Singapore's financial technology firms are looking to hire more people even as the banking and insurance industry turns increasingly cautious due to a slowdown in regional economies.
The report states that 94% of fintech companies are planning to expand their workforce over the next 12 months, with 28% expecting to double headcount in three years.
The report which is based on inputs from 93 executives and professionals working in the industry further adds, “Survey respondents were very optimistic about the outlook for the fintech industry in Singapore, with over 75% stating they believed industry growth would accelerate with more opportunities available.”
Singapore's economy grew just 0.1% on year in the second quarter-its the slowest pace since the end of the global financial crisis in 2009, hurt by contractions in sectors such as manufacturing and wholesale and retail. However, the financial sector showed a positive growth an on-year expansion of 5.2% during the three-month period.
The financial sector accounts for about 13% of the city-state's gross domestic product and employs close to 200,000 people or roughly 5.3% of the workforce. The local fintech sector has between 6,500 and 10,000 people on payrolls, according to SFA and PWC. Numerous initiatives taken to promote the development of fintech firms in the Lion City have led to a flourishing fintech scene with companies of all sizes, ranging from the quintessential startup firm to large financial institutions, as per the report. These include names such as remittance company InstaRem and peer-to-peer lending platform Validus.
Interestingly, the positive sentiment in the fintech sector is in contrast with the more subdued mood among banks and other financial firms, where strong demand for staff with digital or wealth management experience has been offset by a slowdown in activities such as investment banking.