Why Singapore is a Great Location for Financial Services Startups
When it comes to launching a financial services startup, location matters. You need a place that offers a strong financial ecosystem, forward-thinking regulators, access to capital, and a supportive business environment. Singapore ticks all those boxes and more.
Often referred to as Asia’s financial hub, Singapore has long been a favourite destination for global banks, fintech companies, and wealth management firms. But in recent years, it has also emerged as a top launchpad for startups in the financial services space. Whether you’re working on payments, regtech, insurtech, digital banking, or blockchain-based financial products — Singapore offers the right mix of resources, networks, and incentives to help you succeed.
In this article, we’ll explore why Singapore is such a strategic location for financial services startups and how generous government grants can help turn your financial innovation into a thriving business.
1. World-Class Financial Ecosystem
Singapore has one of the most robust and well-established financial ecosystems in the world. It is home to hundreds of banks, investment firms, insurance companies, private equity and venture capital firms. This makes it an ideal location for startups that need strong financial infrastructure and potential industry partners.
As a financial services startup, having access to this network means more than just credibility. It opens doors to strategic partnerships, funding opportunities, and pilot programmes with established players. Many traditional financial institutions in Singapore are now embracing innovation and working with fintech startups to future-proof their operations.
2. Pro-Business and Innovation-First Government
One of the biggest advantages of setting up in Singapore is the government’s strong support for innovation. The Monetary Authority of Singapore (MAS), the country’s central bank and financial regulator, is known for its collaborative and progressive approach toward fintech and financial innovation.
MAS has developed a regulatory framework that balances innovation with stability, allowing startups to test new products and services without unnecessary red tape. Through its regulatory sandbox programme, startups can trial their offerings in a controlled environment, gaining valuable market feedback while still adhering to consumer protection standards.
Additionally, MAS organises events like the Singapore FinTech Festival, which is one of the largest of its kind in the world. This brings together startups, financial institutions, investors, and regulators from across the globe, providing immense exposure and networking opportunities for financial services startups.
3. Extensive Government Grants and Funding Schemes
Singapore doesn’t just encourage innovation — it invests in it. Financial services startups can tap into a wide range of government grants and co-funding schemes that reduce financial barriers and make it easier to get started.
Here are some of the most relevant grants:
- Startup SG Tech: Helps early-stage tech startups fund the development of proprietary technology with commercial potential. This is particularly useful for regtech, blockchain, and AI-driven financial solutions.
- Startup SG Equity: The government co-invests with independent investors into innovative startups. If your financial services startup gets VC backing, the government may match the investment, reducing risk for your investors and helping you raise capital more easily.
- Financial Sector Technology and Innovation (FSTI) Scheme: Administered by MAS, this scheme funds initiatives that foster a culture of innovation in the financial sector. It supports everything from proof-of-concept projects to larger innovation labs and consortiums.
- Enterprise Development Grant (EDG): Offers support to startups building internal capabilities, improving productivity, or expanding overseas. Financial services startups developing new digital products or entering new markets can get a significant portion of project costs subsidised.
These grants provide crucial runway for experimentation, product development, and market entry — especially in a competitive space like financial services.
4. Strategic Location in the Heart of Asia
Singapore’s geographic location makes it a gateway to the fast-growing economies of Southeast Asia and beyond. With direct access to markets like Indonesia, Vietnam, Thailand, and the Philippines — all of which are rapidly digitalising and adopting financial technology — Singapore is perfectly positioned for regional expansion.
For financial services startups, this is a huge advantage. You can test your product in a mature, regulated environment like Singapore and then scale to emerging markets with larger populations and growing demand for financial inclusion, digital payments, and wealth management.
Additionally, Singapore has favourable trade agreements and double taxation treaties with many countries, making cross-border business more efficient and profitable.
5. Talent and Tech Capabilities
Finance and technology both demand talent, and Singapore delivers on both fronts. With a well-educated, tech-savvy workforce, as well as easy access to global talent through its Employment Pass and Tech.Pass schemes, startups can build high-performing teams with relative ease.
The government also supports manpower development through various wage support and training grants. For instance:
- Career Conversion Programmes (CCP): Help startups hire and reskill mid-career professionals into tech and finance roles.
- Jobs Growth Incentive (JGI): Offers salary support to companies hiring locals during growth phases.
- SkillsFuture Enterprise Credit (SFEC): Encourages businesses to invest in workforce training by subsidising upskilling costs.
With access to both local and international talent, Singapore allows financial services startups to scale operations quickly and efficiently.
6. Clear and Credible Regulatory Environment
In the financial sector, trust and compliance are everything. Singapore offers a stable, transparent, and internationally respected regulatory environment, which gives your business a solid foundation to build from.
Startups that are compliant with MAS regulations are seen as credible partners and solution providers, not just in Singapore, but globally. Whether you’re in payments, lending, insurtech, or wealthtech, building under Singapore’s regulatory framework adds immense brand value and trustworthiness.
Moreover, MAS has shown openness to emerging technologies like blockchain, AI, and DeFi, ensuring that regulations evolve alongside innovation instead of hindering it.
7. Vibrant Startup and Investor Ecosystem
Singapore is home to hundreds of accelerators, incubators, VCs, angel investors, and corporate venture arms focused on fintech and financial services. Many banks and insurance companies have also set up their own innovation labs or venture arms to explore partnerships with startups.
Organisations like SGInnovate, Plug and Play, 500 Global, and Fintech Nation offer structured support, mentorship, and access to funding. Government-linked platforms also run startup competitions, grant calls, and matchmaking events, helping startups gain traction and validation.
The presence of this ecosystem means that no startup grows alone. From the idea stage to Series A and beyond, you’re surrounded by opportunities to learn, grow, and collaborate.
8. High Digital and Financial Literacy
Singapore boasts one of the highest digital and financial literacy rates in the region. The population is highly connected, open to adopting new technologies, and used to digital banking and cashless payments. This makes Singapore an excellent test market for new financial products before rolling them out to other regions.
The tech-savvy population also means you get rapid feedback on product usability, security features, and user experience. Whether you’re building a robo-advisor, peer-to-peer lending platform, or AI-powered regtech tool — you can refine your solution faster in a responsive market like Singapore.
Final Thoughts
The financial services industry is undergoing massive transformation, and startups are leading the charge. Whether you’re building the next generation of digital banks, creating inclusive lending platforms, or tackling compliance with AI, you need the right environment to grow.
Singapore offers everything a financial services startup could ask for — world-class infrastructure, forward-looking regulation, access to funding, deep talent pools, and a vibrant ecosystem of partners and supporters. And with strong government grants helping to ease the financial burden and accelerate innovation, there’s never been a better time to launch your financial services startup in the Lion City.
So if you’re looking for a place where your startup can thrive — not just survive — Singapore might just be the smartest move you’ll ever make.