In the dynamic landscape of FinTech, where innovation steers financial transformation, funding trends act as a compass guiding the industry’s trajectory.

KPMG unveiled its Pulse of Fintech H1, 2023 report this summer, spotlighting significant industry shifts with a focus on funding dynamics. Let’s explore the data’s implications for hiring and talent acquisition in Singapore’s thriving FinTech ecosystem in 2024.

Global Funding Trends: A 17% Dip in H1’23

The first half of 2023 witnessed a 17% decline in global FinTech funding, totaling US$52.4 billion across 2,153 deals. This recalibration in investor sentiment reflects in Singapore, where H1’23 funding dropped to US$934 million across 84 deals. The nuanced shift signifies evolving investor preferences and expectations, impacting hiring and talent strategies:

1. Selective Growth Initiatives: Companies may adopt a more strategic approach to growth, targeting key roles aligned with their trajectory.
2. Talent Agility: With funding fluctuations, maintaining agility in hiring strategies becomes crucial.

AI and Machine Learning: The Power of US$129 Million

Singapore experienced a surge of US$129 million in funding for AI-focused FinTechs in H1’23, emphasizing the city-state’s commitment to cutting-edge technologies. The implications for hiring and talent include:

1. Specialized Skill Demand: Increased funds highlight the demand for professionals skilled in AI applications within financial services.
2. Fostering Innovation: Companies can invest in research and development, attracting highly skilled Engineers and developers.

Resilience of Payments, Crypto, and AI Sectors

Despite the funding landscape’s fluctuations, the payments, crypto, and AI sectors in Singapore displayed remarkable resilience, being the top three most funded in the FinTech space. The implications for hiring and talent involve:

1. Targeted Skill Acquisition: Hiring managers may prioritize roles linked to payments infrastructure, cryptocurrency, and AI.
2. Market Competitiveness: Increased demand may lead to heightened competition for top-tier talent, requiring effective employer branding and competitive compensation.

Supply Chain and Logistics FinTech: US$8.2 Billion Breakthrough

Supply chain and logistics-focused FinTechs attracted a record US$8.2 billion in funding in H1’23, indicating the sector’s growing significance. The implications for hiring and talent include:

1. Emerging Skill Needs: Increasing demand for professionals skilled in supply chain management and logistics optimization.
2. Niche Expertise: Companies leveraging this trend must source individuals with domain expertise in both supply chain and logistics and FinTech.

In Singapore’s FinTech ecosystem, funding trends act as a dynamic force shaping the industry’s trajectory, presenting unique opportunities and challenges for hiring and talent acquisition. As the industry evolves, companies must remain agile, proactive, and innovative to navigate the ever-changing currents of the FinTech talent pool in 2024.

If you want to delve deeper into Singapore’s hiring trends and data, feel free to download our 2024 Singapore FinTech Report.