Top Financial Services Companies in Singapore

You badly need investment or retirement advice and you know your former banker-buddy-turned-plumber isn’t your best source of financial guidance. This is where you switch to a financial advisor or your local bank for professional insight.

The financial service industry entails more than just depositing money or getting your credit card approved. You’re likely to deal with financial service providers as an investor, budding homeowner, bank account holder, or high net worth individual.  But we can stop and ask what’s the financial service industry in lay terms. Let’s delve deeper.

What is the Financial Services Industry?

Financial services refer to the services offered by firms that are in the business of managing money, asset management, investing, advisory, insuring, security trading, accountancy, and lending, among others.

Similarly, financial services refer to the designing and distribution of financial instruments, products, and advisory services to individuals and organisations. These products and services revolve around the banking, insurance, investing, assets, personal finance, and wealth management institutions.

It may be wrong to think that banks, insurance agents, mortgage firm’s brokers, and the like offer unrelated services. If you take a closer look, you’ll notice the difference in theory offerings, but don’t be misled to think they’re disparate. The truth is that they offer services that make the more prominent finance service industry.

As a diverse industry, the financial service sector offers its services to governments, SME, MNCS, and non-profit outfits. In Singapore and the rest of the globe, the financial services sector makes up the most critical segment of the economy.

Financial Services Examples

• Hire Purchase Finance
• Credit cards
• Merchant Banking
• Asset Liability Management
• Wealth planning and management
• Housing Finance
• Portfolio Finance
• Underwriting
• Credit Rating
• Mutual Funds

Top Financial Services Companies in Singapore

How do you benefit from financial services as an individual? Or are you looking to capitalise on them as an established company? Before you pick specific products or advisory services, it’s good to know what financial services can do for you and your business.

• Stimulates Investment

  Financial services push for more demand for specific financial products. The finance service provider has to invest more to meet the needs of the investor. Financial services assist investors such as a merchant banker through a new issue market enabling the producer to attract capital. Equally, it can be the stock market helping the investor to mobilise additional funds.

• Promotes Savings

  Financial services, including mutual funds, encourage the saving culture. If you’re a pensioner looking to save through different options, you can choose viable investments that promise excellent returns on investment, and there’s minimum risk. Remember, authorities require financial service providers to safeguard the interests of those who save in their firms.

• Minimises Risks

  Insurance services mitigate risks facing financial service firms and producers. Various risks are covered, from declining business and natural catastrophes. Insurance acts as an investment and as a source of capital.

• Maximises Returns

  Did you know that financial services enable entrepreneurs to augment their returns? But how? These services avail credit at reasonable rates. With such credit facilities, business owners can acquire high-value assets and increase their turnover.

• Ensures Greater Yield

  You’ve probably noted the difference between yield and returns. Higher yield draws more producers into a specific market. They drive up production to meet existing demand. Financial services enable individuals and companies to earn more profit and build more wealth. The stock market offers the perfect opportunity in this regard.

• Spurs Economic Growth

  Economic growth comes about as a result of development in all sectors. The financial service sector avails funds to core sectors and ensures balanced growth. If the primary, secondary and tertiary sectors are growing progressively, it brings a positive impact to the overall economy.

Types of Financial Services for You to Consider

• Banking

  Banking includes the distribution of cash into saving accounts, lending money to customers, and so on. Some regulations dictate rules, such as 10% of the funds to be withheld in the account. Banking avails loans to customers from the interests accrued from these accounts.

• Advisory

  Financial advisory services are expert insights offered to individuals and companies. Financial advisors help with ideas in investment, business valuation, and estate planning, and wealth management, among others. The right advisor guides investors when making financially related decisions.

• Wealth Management

  Wealth management services enable people to make sound saving decisions. Providers offer excellent investment advice, robust products, and services that help investors to create, diversify, and protect their wealth.

• Mutual Funds

  Mutual funds firms offer investments that involve multiple stakeholders. The investments are not handled by investors but specified professionals. The capital investment isn’t as demanding as the overlay for stocks and bonds. They’re ideal for investors who are keen on risks.

• Insurance

  You know how insurance works; but have you stopped to think that it’s an essential finance service. It acts as a safety net that covers unseen expenses that may arise out of unexpected circumstances. Insurance covers numerous industries ranging from life insurance, health, auto, home, and others.

Characteristics and Features of Financial Services

The following characteristics and features earmark financial services:

• Customer-Specific

  How can a financial service provider create an offering if they didn’t know the needs of their potential customer? Impossible, right? Financial service firms must research their target market before they settle on a product or service strategy. If they can’t keep abreast of their customer clusters, they can’t create offerings that best meet the needs of their customers.

• Intangibility

  We live in a competitive global environment. It’s a fact. However, financial service providers in Singapore and all over the world need to establish a robust brand. For these firms to enjoy customer confidence, they need to concentrate on innovation and product quality.

• Concurrent

  The production of financial services and their supply has to go hand in hand. The discovery and innovation of these services and their distribution happen simultaneously.

• Perishable

  Financial services cannot be stored. They’re perishable. They’re supplied according to customer demands. Their providers need to retain a balance between demand and supply.

• Market Dynamism

  Financial services must exhibit dynamism. They have to keep evolving. You well know that there are constant shifts in the socio-economic environment. Disposable income, living standards, and status quo keep changing. Financial service providers need to visualize market expectations to produce relevant products and services.

How to Choose a Financial Planner in Singapore

So, your investment plans have been flopping since you keep sourcing for advice from the wrong corners. Well, all isn’t lost. You’re likely to get your projects off the ground if you know how to appoint a professional you can entrust your money decisions to.

In Singapore, the Financial Planning Association of Singapore (FPAS) emphasises on the following numerous steps that ensure you have a certified financial planner in your corner.

1.  Look for an Accredited Planner

Essentially, a financial planner isn’t a stockbroker, insurance agent, or a banker. Planners are all-rounders who rely on a business planning process to assess and craft the right strategy for your investment needs. Don’t forget to check their accreditation and proof of certification.

2.  Identify What You Need

Why are you looking for a financial planner? Do you have debt, cash flow, tax, or estate planning issues? Are you looking for a small start-up planner? Identify what you need before you take any other step.

3.  Ask for Referrals/Recommendations

To get the best CFP expert, ask your associates, your accountant, or attorney, to point you in the right direction. A planner with reliable referrals and a reputation will lead you to your investment nirvana.

4.  Don’t Hire the First Planner You Find

Financial planners won’t charge you for the initial consultation. At least a majority offer this free. This is your best chance to ask pertinent questions. Make sure you have questions that reveal how the planner interacts with clients, their pricing policy, terms, and conditions, not to mention their competency.

Of all, weigh your instincts. If it feels right and you think the rapport in between will end up successfully, you can hire the planner while following industry advice and resources.

Technology Trends in the Financial Services in 2020

Think about technology and its impact on various socio-economic spheres. Then, narrow that down to the financial services sector. Of course, there are emerging technologies that keep changing the processes and procedures in this sector. Read the list below to understand the trends shaping the financial service sector:

• Big Data

  The financial services and banking industry are investing big in big data and analytics. The volume of data from credit cards, ATM transactions, credit scores, and deposits is mind-numbing. Institutions are taking up big data analytics to deduce key indicators from such data to stay ahead. Analytic solutions can help providers in areas such as risk management, market optimisation, sales, and market trend identification.

• Cloud Computing

  Cloud computing allows financial institutors to leverage IT capabilities on demand. It helps cut costs and secure online transactions, transfers, and digital wallet transactions.

• Artificial Intelligence

  Can artificial intelligence impact financial institutions and their services? Significantly so. Institutions such as the banking industry are leveraging chatbots and service robots to improve customer service. Other institutions are using AI to track fraud and facilitate 24-hour banking services.

• Robotic Process Automation

  Robotic process automation (RPA) saves costs, labour, and minimises errors. Institutions are using technology to boost user experience. It employs bots to handle repetitive and labour intensive tasks. With RPA, institutions can employ bots to cater to low profile client queries while customer agents focus on high priority tasks.

• Blockchain

  Forget cryptocurrency and Bitcoin. Blockchain is the new sheriff in the financial sector arena. Its use of distributed and immutable ledgers has made it possible for institutions to run operations transparently, securely, and inexpensively. Financial service companies are quickly considering this technology and its potential to change the face of the industry across banking, insurance investments, and so on.

Blockchain Benefits for the Financial Services Industry

Have you noticed that institutions, including the financial services industry, are ditching legacy systems for refined technologies like blockchain? So, what does blockchain hold in store for the financial service sector?

• Transparency and Reduced Errors

  Blockchain is the best remedy for identified problems. But the bigger picture is blockchain facilitating clarity and real-time tracing of transactions. It makes reconciliation almost effortless. No doubt, it makes compliance and regulatory reporting easier.

• Decentralised System

  Blockchain technology shares ledgers to a multiplicity of nodes. So, there’s no need to involve a third party patron when storing or processing information. This makes financial data hacking impossible. Furthermore, with no third-party control, blockchain transactions are cheaper.

• Secure

  Blockchain technology is exceptionally secure. The encryption in use permits individuals with a unique code to access.

• Improved Record Keeping

  In Singapore and the rest of the globe, the financial service industry has custody of financial records and data. If blockchain is employed, it can record such data immutably and reduce fraud. Dispute resolution becomes easy and so does document referencing.

• Trade Finance Benefits

  Blockchain solutions automate transactions. Smart contracts help automate workflow and intense calculations. Institutions thus require less workforce and largely avoid errors.

Benefits of IT Automation for Financial Institutions

In Singapore, you don’t have to crane your neck too high to realise that financial service institutions are taking up technology progressively. IT automation enables financial services providers to leverage efficiency, reduce operational risks, and reduce costs.

• Control and Governance

  Financial service firms need to manage sensitive client and business data diligently. There is also the problem of centralised management and oversight. If there’s high personnel turnover, data access issues arise. With automation, these providers enjoy better data control.

• Increased Efficiency

  Through automation, financial service providers can innovate, inject process efficiency, and reduce costs. With end-to-end IT benefits, providers deliver competent and dependable services.

• Improved Underwriting

  Automated underwriting improves the entire insurance procedure. Insurance agencies that have automated their systems enjoy better workflow, customer relations, and better service quality. You can be sure that they enjoy quick decision making and improved return on investment (ROI).

• Reduced Paperwork

  With automation comes the reduced need for paperwork. Whether it’s in the banking or underwriting sector, automating processes ensures data and processes are streamlined. A service provider who invests in the cloud is sure to stay ahead of the competition while reducing overheads.

• Easy Collaboration

  Relying on manual and labour-intensive processes in the financial service sector hampers innovation and service quality. The industry comprises many moving parts that affect the much-needed simplicity in collaboration. Automation simplifies complex bureaucracy in the financial service industry.

Cloud Benefits for the Financial Services Industry

Are you already conversant with the cloud? If you’re not, you have a long curve ahead to manoeuvre. But isn’t it evident that your business can reap big benefits by investing in the cloud? If so, don’t you think the cloud has immense benefits for the finance service sector in Singapore and beyond? Let’s take a look at some of its benefits.

• Business Agility

  Cloud computing injects agility into any business. The financial service sector is on that list. Business mobility is one aspect that the cloud renders to financial institutions. Providers free up time and staff can access data from any device remotely. The IT personnel doesn’t have to bother with infrastructure, software updates, and other day-to-day issues.

• Leverage Infrastructure as a Service

  The cloud offers infrastructure as a Service (IaaS). It helps to reduce deployment, testing, and expending in-house capabilities. IaaS gives service providers the platform to test new apps and products. Institutions can capitalise on the AWS capabilities to run credit risk simulations. Don’t forget, there are superior computing and processing capabilities that help providers reduce hour-long transactions into minute-long procedures. It boosts profitability and faster decision making.

• Scalable Computing

  Financial service providers have considerable data to organise. The cloud lets these firms host their CRM in the cloud. Providers, including Microsoft Azure or AWS, enable service providers to host general data in the cloud. They free up their internal servers, and they can store case sensitive data that they don’t want to share in the cloud.

• Low-Cost Storage

  Financial institutions have huge data volumes to manage. They’re obligated to hold tax, credit, investment, or other financial data for long periods. You cannot afford to choke your internal servers with huge data volumes. The wise way out is to invest in scalable server and storage services.

Key Takeaways

1. Financial services make up an essential part of any country’s economy
2. Financial services comprise a wide range of activities, including banking, insurance, investments, mortgaging, and others.
3. Financial service providers and their experts offer financial services. Financial products are the tangible goods, accounts, and investments they offer.
4. Large conglomerates lead in the sector though smaller entities and credit providers are equally active in the industry.