Singapore isn't just keeping pace in the global financial race—it's surging ahead, with its financial services sector now powering a record 13.9% of the nation's GDP and cementing its status as a top-three financial hub worldwide.
Key Takeaways
- In 2023, Singapore's financial services sector contributed 13.9% to the nation's GDP, up from 13.2% in 2022
- The financial and insurance sector grew by 7.9% year-on-year in Q1 2024, driven by wholesale banking and fund management activities
- Total financial sector output reached SGD 102.4 billion in 2023, a 6.5% increase from SGD 96.2 billion in 2022
- Total banking assets stood at SGD 2.3 trillion as of Q4 2023, with domestic banks holding 42%
- Singapore banks' non-performing loans ratio was 1.3% in 2023, below the regional average of 2.1%
- Local banks recorded a 9.2% return on equity in 2023, driven by net interest margin expansion to 1.95%
- Singapore's assets under management in wealth management reached SGD 4.0 trillion in 2023, a 14% YoY growth
- Private banking AUM surpassed SGD 1 trillion in 2023, with 50% from UHNWIs
- Number of family offices doubled to 1,400 in 2023, managing SGD 380 billion AUM
- General insurance gross premiums written totalled SGD 5.2 billion in 2023, up 5.1% YoY
- Life insurance new business premiums reached SGD 8.9 billion in 2023, a 4.2% increase
- Insurance penetration rate stood at 14.5% of GDP in 2023, above OECD average
- Fintech firms in Singapore numbered 1,500 as of 2024, with 400% growth since 2016
- Digital payment transactions reached 2.5 billion in 2023, up 25% YoY via PayNow
- Blockchain and DLT firms secured SGD 1.2 billion in funding in 2023
Singapore's financial sector grew strongly in 2023, cementing its top global position.
Banking Sector
- Total banking assets stood at SGD 2.3 trillion as of Q4 2023, with domestic banks holding 42%
- Singapore banks' non-performing loans ratio was 1.3% in 2023, below the regional average of 2.1%
- Local banks recorded a 9.2% return on equity in 2023, driven by net interest margin expansion to 1.95%
- Cross-border payments processed through Singapore banks exceeded SGD 15 trillion in 2023
- Number of digital banks licensed reached 5 by end-2023, with deposits growing 150% YoY
- Wholesale banking revenues grew 11% to SGD 25 billion in 2023, led by trade finance
- Singapore's banks issued SGD 120 billion in green bonds in 2023, a 25% increase from 2022
- Total loans and advances by banks reached SGD 950 billion in Q4 2023, up 4.8% YoY
- Retail banking deposits hit SGD 450 billion in 2023, with 60% in fixed deposits
- Corporate lending portfolio grew to SGD 600 billion, with SMEs accounting for 15%
- Offshore loans by Singapore banks totalled SGD 700 billion in 2023, 75% of total loans
- Net interest income for banks rose 15% to SGD 18 billion in 2023
- UOB's total assets grew to SGD 458 billion in 2023, with 10% loan growth
- Trade finance volume handled by banks was SGD 1.2 trillion in 2023
- SME lending by banks increased 8% to SGD 90 billion in 2023
- Capital adequacy ratio for Singapore banks averaged 19.2% in 2023
- Banks' liquidity coverage ratio averaged 140% in 2023, well above minimum
- Project Nexus linked ASEAN payments, processing 1 million txns daily by 2023 end
- Mortgages outstanding grew 3.5% to SGD 220 billion in 2023
- Credit card spending hit SGD 25 billion, up 12% in 2023
- Islamic banking assets reached SGD 6.5 billion in 2023
- Custody assets under administration totalled SGD 3.5 trillion in 2023
Banking Sector Interpretation
Singapore's banking system is a colossus of cautious ambition, where staggering cross-border flows coexist with fortress-like balance sheets, all while digital upstarts begin to nibble at the edges of a very well-fed giant.
Economic Contribution and Growth
- In 2023, Singapore's financial services sector contributed 13.9% to the nation's GDP, up from 13.2% in 2022
- The financial and insurance sector grew by 7.9% year-on-year in Q1 2024, driven by wholesale banking and fund management activities
- Total financial sector output reached SGD 102.4 billion in 2023, a 6.5% increase from SGD 96.2 billion in 2022
- Singapore's financial centre ranked 1st in Asia and 3rd globally in the 2024 Global Financial Centres Index
- The sector's value-added grew by 8.1% in 2023, accounting for over 14% of total GDP
- Foreign exchange turnover in Singapore hit USD 1.0 trillion daily average in April 2022, maintaining its position as the third largest globally
- In 2023, Singapore hosted 1,300 fintech firms, contributing to a 10% growth in digital finance output
- The sector employed 244,200 people in 2023, representing 13.7% of total employment
- Financial services exports reached SGD 180 billion in 2023, a 12% YoY increase
- Singapore's AUM in fund management grew to SGD 5.4 trillion as of end-2023, up 12% from 2022
- Total assets under management in digital asset firms reached SGD 5 billion in 2023
- Singapore's financial sector FDI inflows hit SGD 15.7 billion in 2023
- The sector's productivity grew 5.2% in 2023, above national average of 3.8%
- Singapore's ranking as top sustainable finance hub, with SGD 300 billion green loans in 2023
- Financial services added SGD 28 billion to GDP in Q3 2023 alone
- Sector's R&D spending increased 15% to SGD 1.2 billion in 2023
- Total equity market capitalisation reached SGD 900 billion in 2023
- Debt securities outstanding totalled SGD 1.1 trillion as of 2023
Economic Contribution and Growth Interpretation
While Singapore's bankers may work with dizzying sums of digital money and green bonds, their most tangible output is proving to be an ever-larger slice of the national pie, served with a side of global ambition and a growing army of employees.
Fintech and Payments
- Fintech firms in Singapore numbered 1,500 as of 2024, with 400% growth since 2016
- Digital payment transactions reached 2.5 billion in 2023, up 25% YoY via PayNow
- Blockchain and DLT firms secured SGD 1.2 billion in funding in 2023
- 98% of Singapore consumers used digital wallets in 2023, highest in Asia
- Project Orchid CBDC trials processed over 100,000 wholesale transactions in 2023
- Regtech solutions adopted by 85% of financial institutions in 2023
- Cross-border real-time payments via PayNow linked to 8 countries, handling SGD 10 billion in 2023
- Insurtech startups raised SGD 250 million in 2023, focusing on AI claims
- Embedded finance transactions via fintech hit SGD 50 billion in 2023
- Open banking APIs usage reached 500 million calls in 2023
- DeFi platforms licensed in Singapore managed SGD 3 billion TVL in 2023
- QR payment adoption at 95% of merchants in 2023
- AI in fraud detection prevented SGD 1.5 billion losses for banks in 2023
- P2P lending platforms disbursed SGD 800 million to 50,000 borrowers in 2023
- Tokenised asset market cap reached SGD 10 billion on Singapore exchanges 2023
- NEOP (New digital payment token framework) licensed 20 firms by end-2023
- Venture capital funding for Singapore fintech totalled USD 1.9 billion in 2023
- Buy Now Pay Later transaction volume SGD 2 billion in 2023
- Stablecoin reserves held by Singapore firms SGD 4 billion in 2023
- API banking frameworks adopted by 90% of banks in 2023
- Remittance inflows via fintech SGD 15 billion to Singapore in 2023
- NFT marketplace volume on Singapore platforms SGD 500 million 2023
- Cloud computing spend by financial firms SGD 2.5 billion in 2023
- Quantum computing pilots by banks numbered 10 in 2023
Fintech and Payments Interpretation
Singapore's financial landscape has become a dazzling, high-velocity digital bazaar where wallets are obsolete, payments are borderless, and every transaction, from a coffee to a billion-dollar tokenized asset, hums on a foundation of relentless innovation and remarkably prudent regulation.
Insurance Sector
- General insurance gross premiums written totalled SGD 5.2 billion in 2023, up 5.1% YoY
- Life insurance new business premiums reached SGD 8.9 billion in 2023, a 4.2% increase
- Insurance penetration rate stood at 14.5% of GDP in 2023, above OECD average
- Number of licensed insurers grew to 242 in 2023, with 60% foreign-owned
- Health and accident insurance accounted for 42% of general premiums at SGD 2.2 billion in 2023
- Motor insurance claims ratio was 68.3% in 2023, down from 72% in 2022
- Bancassurance channel contributed 55% of life insurance sales in 2023
- Cyber insurance premiums grew 30% to SGD 150 million in 2023 amid rising threats
- Total insurance density per capita was SGD 3,800 in 2023
- Reinsurance ceded by Singapore insurers was SGD 2.1 billion in 2023
- Life insurance policies in force totalled 18 million in 2023
- Property and casualty insurance market size was SGD 4.8 billion in premiums 2023
- Insurance density for life insurance was SGD 1,600 per capita in 2023
- Digital insurance sales channel grew to 35% of premiums in 2023
- Workers' compensation premiums totalled SGD 450 million in 2023
- Combined ratio for general insurers was 92.5% in 2023, indicating profitability
- Marine hull insurance premiums SGD 650 million in 2023
- Takaful insurance products grew 20% to SGD 1 billion in 2023
- Solvency ratio for life insurers averaged 250% in 2023
- Microinsurance policies issued 500,000 covering low-income in 2023
- Catastrophe bond issuance SGD 500 million via Singapore in 2023
- Travel insurance premiums rebounded 40% to SGD 300 million post-COVID 2023
- Parametric insurance payouts totalled SGD 100 million for climate risks 2023
Insurance Sector Interpretation
Singapore's insurance market is proving robust and remarkably balanced, growing healthily across life and general sectors while deftly navigating everything from rising cyber threats and climate risks to ensuring coverage for the most vulnerable.
Wealth and Asset Management
- Singapore's assets under management in wealth management reached SGD 4.0 trillion in 2023, a 14% YoY growth
- Private banking AUM surpassed SGD 1 trillion in 2023, with 50% from UHNWIs
- Number of family offices doubled to 1,400 in 2023, managing SGD 380 billion AUM
- Sustainable investment AUM grew 22% to SGD 1.2 trillion in 2023
- Fund managers in Singapore managed 4,500 funds with average fee of 0.85% in 2023
- Cross-border AUM accounted for 82% of total SGD 5.4 trillion in 2023
- Wealth management headcount reached 42,000 professionals in 2023, up 8%
- Average client assets per RM stood at SGD 45 million in private banking in 2023
- ESG-focused funds AUM hit SGD 200 billion, 18% of total in 2023
- Singapore ranked 1st globally for family office friendliness in 2023 survey
- Wealth tech adoption reached 70% among private banks in 2023
- Number of licensed fund managers was 1,200 in 2023, managing 11,000 funds
- Alternative investments AUM grew 18% to SGD 800 billion in 2023
- HNWIs in Singapore numbered 300,000 in 2023, up 7%
- Robo-advisory AUM hit SGD 2 billion, serving 200,000 clients in 2023
- Private equity funds domiciled in Singapore raised SGD 15 billion in 2023
- UHNWIs assets grew 12% to SGD 1.5 trillion managed in Singapore 2023
- ETFs listed on SGX numbered 50 with AUM SGD 10 billion in 2023
- Venture capital AUM in Singapore hit SGD 20 billion in 2023
- Impact investing mandates totalled SGD 50 billion in 2023
- Wealth advisors certifications issued 5,000 in 2023
- Real estate funds AUM SGD 150 billion, 12% growth in 2023
- Offshore fund launches totalled 250 in 2023
- Pension funds managed SGD 300 billion externally in 2023
Wealth and Asset Management Interpretation
Singapore isn't just a piggy bank; it's a meticulously curated, globally fueled, tech-savvy, and increasingly green vault where the ultra-rich park their treasure, family offices have become the new neighborhood watch, and everyone from robo-advisors to private equity maestros is getting a slice of the four-trillion-dollar pie.
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