The government of Singapore continues to demonstrate support for innovative financial companies, by approving the $6 million Fin Tech Solidarity Grant.
Results of a recent survey conducted by the Singapore FinTech Association revealed that about half of the survey’s total respondents are startup companies adversely impacted by the economic regression spawned by the COVID-19 pandemic.
Through the grant, fintech companies that have been significantly affected by the fallout, can seek additional funding to use for their daily business expenses, including the payroll of undergraduate interns under their employ.
Actually, there are about 490 fintechs operating in Singapore that receive encouragement in becoming an integral part of the country’s financial industry. The Fin Tech Solidarity Grant launched by the Monetary Authority of Singapore (MAS) last May 13, 2020 is only supplementary to the much larger $125 million fintech support package released by the government last April, 2020.
Overview of the Fin Tech Solidarity Grant
Setup and funded by the MAS and the AMTD Group, whic is an investment banking firm that supports fintechs in Singapore, the $6 million additional grant is open to eligible companies that will submit their application between May 18 to December 31, 2021.
There are two types of financial assistance available:
Business Sustenance Grant – furnishes up to $20,000 that startups can utilize as payment for salaries, rent, utilities and other short-term overhead expenditures.
Business Growth Grant – hands out as much as $40,000 to startup fintech firms that can show proof of concept through a demonstration of a workable financial service plan via the API Exchange platform. The API Exchange platform helps fintechs connect and collaborate with each other on design experiments.
Some Examples of Technology-Supported Financial Services Provided by Fintechs
There are different types of innovative financial services being provided by well-established fintech firms comprising this specific sector of Singapore’s financial industry. Some examples include but are not limited to the following :
1. Peer-to-Business Lending between accredited Small to Medium Scale Enterprises (SMEs) and institutional lenders.
2. Blockchain-supported cross-border money transfers.primarily focused on servicing tourists, migrant workers, expats, regular travelers, international students and the so-called digital nomads, while visiting or residing in Southeast Asia.
3. Mobile-based social trading platform that allows stock brokerage firms in Singapore to communicate in real-time with other stock traders across the globe, in a transparent setting.
4. AI that presents models in helping individuals in Asia, Middle East and Europe make better financial decisions when developing lifestyle plans for the future.
5. Mobile money-transfer application that enables Filipino workers and migrants in Singapore and Hong Kong to quickly and economically transmit money to the Philippines; as an alternative to sending via traditional money shops and banks.
6. There are also fintechs that use data-driven technology when operating as licensed money lenders Singapore citizens turn to for emergency loans.
SG City Loan does not represent any fintech or lender, but can direct individuals looking to quickly obtain low-interest personal loans to the nearest licensed money lenders in their location.