Smart Nation Singapore continues to forge ahead in the financial technology industry, especially with the news announced last month that challenger bank Fidor has invested in five polytechnics so that students and lecturers are trained on developing fintech applications, using Fidor’s API sandbox and fidorOS digital banking platform. This is a significant step for Singapore’s financial sector and fintech alike as students will be able to develop digital banking services and will inevitably go on to apply these skills when working in traditional banking or other areas.
Supported by the MAS, Fidor Bank’s S$800,000 ($600,000) investment will launch a fintech education curriculum at Ngee Ann Polytechnic that will require an additional S$160,000 ($120,000) to run and soon, boost the city state as a fintech hub in the Asia Pacific region. Access to the Fidor sandbox will also mean that the 500 students in the program will have the ability to test out applications they have created using the fidorOS platform. Some students will also have the opportunity to take on an internship at a Fidor headquarters where schemes like these are also taking place, like in Munich with the School of Infocomm.
Ngee Ann Polytechnic’s Principal Clarence Ti is ‘excited about what our students can learn and experience through the inclusion of Fidor’s API banking programme into our curriculum. The Fidor partnership will provide real-life practice for them and hone their skills and knowledge in digital banking to prepare them for the future marketplace. Chief Fintech Officer of the MAS Sopendu Mohanty added that ‘fintech celebrates the spirit of collaboration, and the polytechnics’ partnership with Fidor will no doubt further develop the fintech ecosystem in Singapore through knowledge sharing MAS looks forward to a high level of interest for this programme, and the benefits it will provide to the tertiary institutions,’ Mohanty said.
Founder of Fidor Bank and CEO of Fidor Group Matthias Kröner, highlighted that they ‘share the same vision as the government of Singapore, to bring innovation, create an exceptional customer journey, and collaborate with more fintech companies, in addition to sharing our knowledge with students that will be the talents of tomorrow’s financial sector. We are excited to be able to take part in Singapore’s Smart Nation initiative through API technology education,’ Kröner said. Singapore also being the location for the challenger bank’s new APAC office solidifies the city state’s position as a fintech hub also.
Kröner went on to say in conversation that ‘at Fidor, we believe that this journey starts at the education level and through our initiative, we will be contributing to strengthening Singapore’s local technology and finance skills among its emerging workforce. The partnership demonstrates Fidor’s full commitment in sharing its knowledge and support with the fintech world - by supporting students who will be tomorrow’s fintech leaders and entrepreneurs.’
With fintech in Asia rapidly forming and adapting the way consumers bank with the rate of mobile adoption, financial technology is necessary - traditional banks will either try to partner with or acquire to stay ahead of the game. Challengers like Fidor are an extra step ahead and targeting the education system will provide students with the skills needed to work in the digital era. In addition to this, support from the MAS will ensure that there is a future for fintech even in the distant future.
‘This means that fintech platforms can focus their efforts purely on building and testing their concepts, while having the opportunity to reach the minimum viable product (MVP) stage as early as possible before they need to start worrying about complying with local regulations. This makes Singapore the perfect market for fast tracking innovation and strengthening its leading position in the region - and if thinking about the longer term, fintech companies are also benefiting from its advantageous geographical location that enables to tap into large markets across the APAC region,’ Kröner said.
Again, mobile connectivity and the fast adoption rate has and will see more consumers from unbanked and underbanked populations in the East looking for convenience when it comes to banking through mobile-only solutions. Kröner explained that ‘fintech challengers have already realized the opportunity ahead and are trying to gain a small piece of the pie as well as local governments in countries such as India and Myanmar which are also trying to boost their economy by making banking licenses more accessible to attract foreign investments.’
‘Competitive threats could emerge from the West too, with established fintech challengers now turning a keen eye towards Asia. The East is experiencing faster growth than the West ever did and it will be interesting to see which fintechs will dominate the region, and to which extent new regulations, initiatives will emerge to oversee this new banking landscape. As a challenger bank, the real opportunity that Fidor Bank can bring to this region is the ability to run a full fledged digital bank that constantly keeps innovating, and this on a cost base that makes banking affordable to all.’
