SINGAPORE, July 13, 2025 — A new report released by Fintech Nation has flagged a critical bottleneck threatening the growth of Singapore’s fintech sector, particularly in its efforts to serve small and medium-sized enterprises (SMEs). According to the report, a staggering 85% of fintech firms have experienced either delays or outright denials in gaining access to essential banking APIs—a move that is stifling innovation, competition, and financial inclusion for SMEs.
Despite Singapore’s reputation as a fintech trailblazer in the region, the findings highlight a persistent infrastructure challenge: a lack of real-time data access and fragmented engagement between traditional financial institutions and emerging fintechs.
Access Denied: Key Findings
The report draws on perspectives from fintechs across lending, SaaS, corporate services, and digital payments. The headline findings include:
- API Access Blockage: 85% of respondents say they have faced delays or denials in accessing banking APIs, making it difficult to deliver digital-first services tailored for SMEs.
- Data Deficit: Only 10% of fintechs currently have access to real-time SME banking data, limiting their ability to offer services such as credit scoring, embedded finance, and customised lending products.
- Fragmented Engagement: Many fintechs report inconsistent and informal interactions with incumbent banks, highlighting a lack of structured collaboration models.
“A Wake-Up Call” for Inclusive Innovation
A spokesperson for Fintech Nation described the situation as a “wake-up call” for Singapore’s digital finance ambitions.
“Fintechs are playing an increasingly vital role in SME finance, yet the lack of accessible infrastructure threatens to stall progress. Singapore has the tools and ambition to lead in this space, but action is needed now to ensure inclusive growth,” the spokesperson said.
The report warns that unless these barriers are addressed, the country risks losing its competitive edge in financial innovation—especially in the context of SME finance, a sector long underserved by traditional banking.
Call for Collaborative Reform
To overcome these challenges, the report outlines several policy and infrastructure recommendations:
- API Sandboxes: Establish shared, risk-controlled environments for fintechs to test integrations with banking systems.
- Centralised API Directory: Create a national registry of banking APIs and their access protocols to streamline partnerships.
- Regulatory Clarity: Strengthen oversight to reduce subjectivity in how banks grant access, thereby fostering a more level playing field.
The findings are expected to initiate dialogue among regulators, financial institutions, and technology players on how to unlock the full potential of open finance in Singapore. As SMEs continue to form the backbone of the nation’s economy, fintech-enabled access to capital and digital services will be crucial in driving sustainable and inclusive growth.