Financial inclusion should be measure of success for fintech

THE buzz at this year's Singapore Fintech Festival, the world's biggest, shows that financial technology has come of age. Even Indian Prime Minister Narendra Modi made time to address a big gathering of attendees and make a strong pitch for fintech investment in India.

Funding for Singapore fintechs has never been better; a report by UOB shows that in the first 10 months of this year, firms here have already attracted 25 per cent more funding than for the whole of last year. Indeed, fintech seems to be creating buzz at the moment among venture capitalists (VCs) globally. As Mr Modi said in a jocular vein during his speech, to increase VC funding by 10 per cent, you need to say you are a platform. He added that if you want 20 per cent more, you say you are a fintech start-up, and if you want "investors to empty their pockets", say you are using blockchain.

While new solutions like contactless payment, QR codes and peer-to-peer payments that are being launched in Singapore are welcome and necessary, the Republic is already well served by the traditional financial sector. The real measure of long-term success for Singapore-based fintechs will be how they are able to help bring about financial inclusion for that vast segment of people who have been left behind as Asia rapidly develops.