Financial technology companies in Singapore are looking to employ more individuals even as, according to the Nikkei Asian Review, the wider banking and insurance industry is becoming progressively cautious owing to a slowdown in regional economies.
A study published previously this week by the Singapore FinTech Association and PwC reveals that 94% of fintech firms are expected to grow their workers over the next 12 months, with 28% expected to become double in three years.
“Survey participants were very hopeful about the prospects for the fintech business in Singapore, with more than 75% claiming that sector development would accelerate with more possibilities accessible,” SFA and PwC said in a study relying on input from 93 managers and business experts.
The bullishness among fintech firms contrasts with the dark mood among banks and other financial firms, where a slowdown in operations such as investment banking compensate powerful demand for employees with digital or wealth management knowledge.
“Employing banking activity stays conservative, most of which are substitute functions,” said Lim Chai Leng, Randstad Singapore’s director of banking and financial services.
In the second half, Singapore’s economy rose just 0.1% a year, the slowest rate since the beginning of the global financial crisis in 2009, harmed by contractions in industries such as manufacturing and wholesale and retail. However, the economic industry buckled the trend over the three-month era with an on-year growth of 5.2%.
The financial sector represents about 13% of the gross domestic product of the city-state and employs nearly 200,000 people or 5.3% of the workforce. According to SFA and PWC, with between 6,500 and 10,000 individuals on payrolls, the local fintech industry, which straddles finance and infocomms, is much lower.
Nevertheless, according to investment agency InvestHK, the Singapore fintech industry, which includes 600 to 900 businesses, is bigger than the one in Hong Kong, where the amount is just over 550.
Outside fintech, demand for employees appears to be greatest in fields like wealth management owing to powerful development in the amount of high-net-worth individuals in Asia. For example, Citi Private Bank informed Nikkei Markets that it was producing fresh hires, and from 2017 its headcount in Singapore increased by 10%.
“We expect a steady requirement for property relationship executives and banking insurance executives within the front office room,” Randstad’s Lim said