Singapore SMEs embrace fintech, but banks still matter

KAREN JOY BACUDO

Finance Editor

Aspire has published survey findings showing that 80% of Singapore small and medium-sized businesses use a fintech provider in some capacity, but only 30% have fully switched from traditional banks.

The data, based on a YouGov survey of 128 business decision-makers in Singapore, found that half of respondents use fintech services alongside a traditional bank, while a further 17% have not switched but are interested in doing so.

The figures point to broad adoption of fintech tools among smaller businesses, while also suggesting that traditional banks remain embedded in day-to-day financial operations. Among businesses that have not fully switched, 36% said they were very confident that a fintech provider could fully replace a traditional bank for their business banking needs, while 49% were somewhat confident. Another 14% were neutral, and only a small minority expressed low confidence.

Andrea Baronchelli, Co-Founder and Chief Executive Officer of Aspire, said the results reflected a major market shift.

“When we started Aspire, fintechs were barely in the consideration set for businesses,” said Andrea Baronchelli, Co-Founder and Chief Executive Officer of Aspire. “So to see 80% of businesses now using fintech in some capacity shows how far the industry has come. But we’re still in the early stages of that shift. As business banking and financial software converge, there is a much bigger opportunity to bring more of their financial operations into one place.”

Use of fintech services remains concentrated in core finance functions. The survey found that 61% of respondents use fintechs for business accounts and payments, 53% for credit and financing, 52% for accounting integrations, and 51% for payroll through their main platform.

Switching barriers

For businesses that have yet to make a full move, the main obstacles were practical rather than financial. Some 27% said they had no strong reason to change providers because their current service was good enough.

Operational disruption and data security were the most commonly cited concerns during a transition, with 30% of respondents naming each. This suggests that moving providers remains a central issue even where interest in fintech is already established.

By contrast, 33% said easier onboarding would make them consider switching providers, and the same proportion cited better customer support.

Lower fees were not the main reason for considering a move. AI integration and features were cited by 32% of respondents, matching the share who selected faster transactions. Better foreign exchange rates were named by 28%.

Human support

The survey also examined how businesses want customer support delivered as more providers add automated tools and AI-based features.

Nearly 80% of respondents said they wanted at least an equal level of human involvement in support. Within that group, 10% preferred human support only, 30% preferred mostly human support with some automation, and 39% wanted an equal mix of both. A further 21% preferred a mostly automated model with human backup.

The results suggest that interest in automation does not eliminate demand for direct staff support when businesses face more complex issues or need reassurance during a transition.

Baronchelli said companies were seeking both efficiency and personal support from their financial providers.

“Businesses are asking for more automation and strong human support at the same time,” he said. “Those expectations aren’t necessarily at odds. Automation can take friction out of routine financial work, while people remain important when a business needs judgment, reassurance or help solving something more complex.”

The study covered business decision-makers at companies with fewer than 250 employees in Singapore who had responsibility for, or influence over, financial and business banking decisions. Aspire serves more than 50,000 businesses across more than 30 markets.