In the dynamic realm of FinTech, where innovation drives financial transformation, funding trends serve as a compass guiding the industry’s course.

 

KPMG released its Pulse of Fintech H1, 2023 report this summer, highlighting the significant shifts the industry is experiencing, with funding dynamics in the spotlight. Let’s delve into the data to uncover its implications for hiring and talent acquisition in Singapore’s thriving FinTech ecosystem.

Global funding trends: A 17% dip in h1’23

In the first half of 2023, the global FinTech arena experienced a 17% decline in funding, with investments totalling US$52.4 billion across 2,153 deals. This drop signals a recalibration in investor sentiment and strategic allocations. Closer to home, Singapore mirrored this trend, with H1’23 funding plummeting to US$934 million across 84 deals from its H2’22 highs. This nuanced shift casts a light on the evolving landscape of investor preferences and expectations. The implications for hiring and talent are:

Selective Growth Initiatives

As funding levels recalibrate, FinTech companies may adopt a more strategic approach to growth. This means that hiring initiatives could become more targeted, focusing on key roles that align with the company’s growth trajectory and value proposition.

Talent Agility

With funding fluctuations, companies must maintain agility in their hiring strategies. Building a versatile workforce capable of adapting to changing demands becomes paramount.

AI and machine learning: The power of US$129 million 

Singapore’s prowess in artificial intelligence and machine learning is unmistakable, with H1’23 witnessing a surge of US$129 million in funding for AI-focused FinTechs. This figure underscores the city-state’s commitment to harnessing cutting-edge technologies, particularly in Cybersecurity, Insurtech, and Wealthtech domains. The implications for hiring and talent are:

Specialized skill demand

The influx of funds into AI and machine learning highlights the growing demand for professionals skilled in these areas. Companies will need to seek and attract talents who possess expertise in AI applications within financial services. Storm2’s data and research exemplify this shift in in-demand skills.

Fostering innovation

With increasing funds in AI and ML, companies have the capacity to invest in research and development, fostering innovation and drawing talent seeking to push the boundaries of what’s possible. Bringing in highly skilled Engineers, Senior developers and Software Engineers will be a priority for the next 12+ months.

Resilience of payments, crypto, and AI sectors

Despite the fluctuating funding landscape, some FinTech subsectors have displayed remarkable resilience. Payments, crypto, and AI sectors in Singapore have demonstrated their ability to weather uncertainties, showcasing the sustained demand for their services and solutions. In Singapore, these verticals were the top three most funded in the FinTech space. The implications for hiring and talent are:

Targeted skill acquisition

Given the resilience of these sectors, hiring managers may prioritize roles linked to payments infrastructure, cryptocurrency, and AI. This could include roles in software development, blockchain expertise, and AI-driven product development.

Market competitiveness

With sustained demand, companies operating in these sectors may face increased competition for top-tier talent. Effective employer branding and competitive compensation packages have become essential to attract the best candidates.

Supply chain and logistics FinTech: US$8.2 billion breakthrough 

Supply chain and logistics-focused FinTechs celebrated a breakthrough in H1’23, attracting a staggering US$8.2 billion in funding, surpassing previous records. This influx signals the growing significance of this sector in reshaping business operations. The implications for hiring and talent are:

Emerging skill needs

The surge in funding for supply chain and logistics FinTechs translates to increasing demand for professionals skilled in supply chain management, logistics optimization, and innovative tech solutions.

Niche expertise

Companies seeking to leverage this trend must source individuals with domain expertise in supply chain and logistics while also possessing a solid understanding of FinTech.

In the landscape of Singapore’s FinTech ecosystem, funding trends serve as a dynamic force that shapes the industry’s trajectory, each funding trend unveils unique opportunities and challenges for hiring and talent acquisition. As the industry continues to evolve, companies must remain agile, proactive, and innovative to navigate the ever-changing currents of the FinTech talent pool. If you want to know more about Singapore hiring trends and data, download our APAC FinTech Report.