Over 2 in 5 MSMEs reject fintechs over data privacy concerns

But over half have already adopted fintech services into their operations.

Trust and awareness are the greatest hurdles being faced by micro, small and medium enterprises (MSMEs), with 42% citing data protection as top reason for non-adoption, according to a report by the Singapore FinTech Association (SFA) and UK-based professional services firm Ernst & Young.

Despite the concerns, slightly more than half (58%) of micro enterprises have already adopted fintech services, quite lower than small or medium enterprises, while 82% are satisfied with fintech services.

High fintech adoption is mostly driven by adoption of payment solutions, meaning there is room for growth for other fintech solutions, the report noted.

In addition, partnerships between fintechs and banks can drive the development of solutions that will better meet consumer demand, especially MSMEs which lack credit and financial history.

The joint study, entitled SMEs Go FinTech Thought Leadership Report, was launched in cooperation with NTUC U SME and Networked Trade Platform (NTP) and were based on responses from 272 MSMEs in the Lion City.

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