A new report by Fintech Nation shared on Tuesday that many fintech companies in Singapore face a big problem. About 85% of these fintechs said that traditional banks have refused or delayed giving them access to important banking APIs. This is making it hard for fintechs to create new services for small and medium-sized businesses (SMEs).
The report says that even though Singapore is a leader in fintech, there is a big problem. Banks don’t share enough data and don’t have clear ways to work with fintech companies.
This makes it harder for new ideas, competition, and funding to reach small and medium-sized businesses (SMEs).
About 85% of fintech companies said banks delayed or refused to give them access to important banking data. This stops fintechs from offering smooth digital services to SMEs.
Only 10% of fintechs get real-time banking data for SMEs, which limits their ability to provide helpful services like credit checks, embedded finance, and personalized loans.
Fintech companies also say that talks with banks are often unclear and not well organized. This shows the need for a more transparent, more open, and fair way to work together on API sharing.
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The report suggests that different groups should work together to create API testing spaces, called sandboxes, where fintechs can safely try out how their systems connect with banks.
It also recommends making a central directory that explains how to access APIs from major banks, so everyone knows the rules and processes.
Lastly, the report asks for stronger rules from regulators to make decisions fairer and support a digital finance system that works better for small and medium businesses.
“This is a wake-up call. Fintechs are playing an increasingly vital role in SME finance, yet the lack of accessible infrastructure threatens to stall progress.
“Singapore has the tools and ambition to lead in this space, but action is needed now to ensure inclusive growth,” the spokesperson of Fintech Nation said.
The report shares views from different types of fintech companies, including those in lending, corporate services, software platforms, and digital payments. It aims to start positive talks between regulators, banks, and tech companies.
Fintech Nation is a Public Benefits Corporation (PBC) that includes an investment platform, a think tank, and a community builder.
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