Strategic Priorities for Maximising Impact in Singapore's Fintech Sector

A Report by CYS Global Remit FinTech Development Unit    

2025 marks a defining moment for Singapore’s fintech industry, shifting from a volume-driven approach to a focus on value creation. While investments hit a record US$1.3 billion in 2024, the market is now witnessing fewer, larger deals—reflecting a growing emphasis on meaningful, sustainable innovation rather than mere disruption. 

Applying the 80/20 Rule in Singapore’s Fintech Landscape 

In such a dynamic environment, applying the 80/20 rule—prioritizing the few actions that generate the most impact—can help companies maintain a competitive edge. With the market expected to reach US$42.77 billion in 2025 and grow at a CAGR of 10.24% to US$69.64 billion by 2030, strategic focus is more critical than ever. 

Three key areas stand out for their high-impact potential: 

• Artificial Intelligence Integration 

• Blockchain for Real-World Applications 

• Strategic Alignment with Government Initiatives 

Artificial Intelligence: The Bedrock of Future Fintech 

AI is rapidly transforming Singapore’s fintech landscape. Investment in AI-related fintech surged from US$24 million to US$160 million within just six months—a clear sign of AI’s disruptive power. 

For fintech players, the opportunity is clear: embed AI into core operations to: 

• Enhance Compliance: Leverage AI-powered RegTech to streamline KYC, AML, and other regulatory processes. 

• Strengthen Fraud Detection: Deploy advanced algorithms to identify suspicious activities and prevent financial crimes. 

• Elevate Customer Experience: Provide personalized services through mobile banking apps. Banks like OCBC project AI will support 10 million daily decisions by 2025 across risk, customer service, and sales. 

Partnering with AI startups and academic institutions can accelerate these efforts, boosting efficiency, customer satisfaction, and regulatory adherence—key pillars of sustainable growth. 

Blockchain: From Vision to Practical Solutions 

In late 2024, blockchain investment in Singapore increased by 20%. Notable examples like Partior secured US$80 million to facilitate international bank payments. 

Now, the focus shifts to developing blockchain solutions that address real business needs: 

• Digital Asset Management: Creating secure platforms for the rising tokenization movement. 

• Cross-Border Payments: Systems like Project Nexus respond to regional remittance needs for SMEs and consumers across ASEAN. 

• Smart Contracts: Automating financial processes to reduce manual effort and increase transparency. 

Collaborating with traditional banks and ensuring MAS compliance will be vital. Practical blockchain solutions build trust, foster partnerships, and position firms at the forefront of financial innovation. 

Aligning with Government Priorities: The Singapore Advantage 

Singapore’s government, particularly through MAS and its 2025 Budget, is heavily investing in AI, green finance, digital payments, and cybersecurity. Fintech firms that align their strategies with these national priorities stand to benefit the most. 

Effective approaches include: 

• Participating in MAS innovation sandboxes 

• Partnering with public agencies on flagship initiatives 

• Accessing government grants and support programs 

Green finance, including ESG analytics, blockchain-based carbon credits, and sustainability reporting, is gaining prominence. Leading banks like DBS, OCBC, and UOB are actively championing these areas. Strategic alignment with government initiatives not only accelerates innovation but also ensures compliance amid complex regulatory landscapes. 

The 80/20 Principle: Focused Efforts, Maximum Results 

By concentrating on AI integration, practical blockchain applications, and government collaboration, Singapore’s fintech companies can unlock their highest potential. These priorities represent the vital 20% of actions that will yield 80% of the results. 

Those who act decisively and strategically now will position themselves as leaders in Singapore’s fintech evolution—shifting from volume to value and building a sustainable, innovative future.