Market Trends of Singapore Neobanking Industry
This section covers the major market trends shaping the Singapore Neobanking Market according to our research experts:
Increasing number of partnership banks will drive the neobanking market
The growing number of collaborations between banks and organizations to establish neobanking platforms is also propelling market expansion in Singapore. These collaborations strive to provide a better client experience as well as increased safety and stability. For example, in April 2021, Google Pay co-creators announced the launch of Fi, a neobank, in collaboration with the Federal Bank to give salaried millennials an immediate savings account and debit cards. Technological improvements and a significant international internet usage increase enable financial service companies to offer consumers innovative digital offerings. Furthermore, the rise of digital wallets has fueled demand for online banking services.
Increasing internet penetration is growing demand for nebanking
The banking and financial services industries are rapidly evolving and expanding. Technology is enabling both giant banks and fintech firms to go into more specialized sectors, such as small business financing, that were formerly the territory of local banks. To stay up with the technological transformation, there has been a tremendous need for adopting and deploying AI solutions, Big Data, and Cloud Computing, among other technologies. In addition, the neobanking model provides a low-cost framework, simple accessibility, and enhanced services. Low real estate and distribution expenses, less sophisticated IT systems, and simplified operational models enhance its cost efficiency. Investors in venture capital and equity are focused on market potential and investing in neobanks.
