Trust and awareness are the biggest challenges for Fintech adoption for micro, small and medium enterprise (MSME). This was the main takeaway from the SME Go FinTech Thought Leadership Report jointly released by the Singapore FinTech Association (SFA), EY, NTUC U SME, Networked Trade Platform (NTP) and Enterprise Singapore (ESG) on Friday, 22 November.
The report aims to provide an understanding of the application of Fintech to MSMEs and to shed some light on how Fintechs – computer programmes and other technologies integrated by financial services companies to improve their services and offerings to customers – can play an even greater role in this specific group of businesses.
Other key findings from the report show that:
• Fintech adoption is relatively high, but this high adoption is mostly driven by adoption of payment solutions. This implies there is room for growth for other Fintech solutions.
• Collaboration between Fintechs and banks will drive the development of solutions that will better meet consumer demand, especially the underserved such as MSME who lack credit and financial history.
These report findings were presented at a launch event attended by around 250 guests which included representatives from Fintech companies, SMEs, EY, U SME and ESG. NTUC Deputy Secretary-General and Senior Minister of State for Trade and Industry Koh Poon Koon was the Guest-of-Honour.
In his speech, DSG Koh emphasised the importance of SMEs to Singapore’s economy, employing more than two-thirds of the workforce and contributing about half of the country’s GDP.
“Singapore’s Fintech space is growing. SMEs should leverage this vibrant ecosystem, accelerate digitalisation efforts and be open to new technology solutions that would enhance their work processes and keep them competitive locally and globally,” he said.
SFA President Chia Hock Lai reiterated this point: “SMEs are an important source of employment and economic growth and the report shows that Fintech solutions can bridge some of the gaps they face, especially in terms of pricing and responsiveness. Awareness and trust are key to drive further adoption of Fintech services by SMEs."
