The two countries should seriously consider combining forces.
Two of the world’s leading fintech hubs are based in Asia. We’re talking, of course, about Singapore and Hong Kong. The other major players include London, New York and Silicon Valley.
Analysts say rather than be rivals, Singapore and Hong Kong should become formidable partners in the fintech race. The two countries have much in common, and increased cooperation and collaboration in terms of technology, governance and market expansion will only serve to benefit them.
Like Two Peas In A Pod
Here’s a look at how similar these two countries are:
1. Vibrant City Culture
It comes as no surprise the leading fintech hubs in the world are melting-pot cities where technology is part of the social DNA.
Both Singapore and Hong Kong are known to have a vibrant city culture. But uniquely to them is the fact they are a blend of both Western and Asian ideas and sensibilities, which means they appeal to a wider demographic.
2. English-Speaking Population
Compared to the other cities in Asia, these two cities are relatively strong in the usage of English as it is one of their official languages.
Which means doing business is easier with the use of the world’s lingua franca. It’s not surprising then these two are often neck to neck in the ranking of the top cities in Asia to do business in.
3. Active Government Participation / Healthy Fintech Ecosystem
Both countries see their governments putting in tremendous efforts to facilitate the growth of fintech.
Their monetary authorities (MAS and HKMA respectively) have set aside budget to support fintech startups and accelerator programs, whilst engaging with banks and other financial institutions to create a healthy fintech ecosystem.
4. Gateways To Bigger Market
Hong Kong is a gateway to China, a country that is known to be hard for foreign companies to break into without prior experience. Which is why a number of businesses start off in Hong Kong, and if they find success, it’d be relatively easier to ease into the Chinese market.
Singapore is a gateway to ASEAN countries, being a trusted member country herself.
Fintech Companies That Are Taking Advantage
While it may be a while before Singapore and Hong Kong decide to form a partnership, a number of fintech companies are already taking advantage by having operations in both countries.
Local fintech companies Bambu and Paypal, are preparing to expand into Hong Kong markets. Bambu, specializing in financial robo-advisory, teamed up with Hong Kong-based fintech accelerator SuperCharger. PolicyPal, an insurtech startup, is in talks with a few potential Hong Kong partners.
Dinar Dirham, a gold and forex investment platform, is founded in Hong Kong but has successfully expanded and launched offices in Singapore and Kuala Lumpur.
Moving Forward…
The two countries should seriously consider combining forces. Fintech hubs like London, New York and Silicon Valley have a greater access to a pool of talent, expertise and resources from the rest of Europe and America, respectively.
By becoming a tag team, not only will Singapore and Hong Kong be able to attract talent and expertise from other parts of Asia, but also secure a larger Asian market share which can be harder for Western countries to break in.
