The auxiliary financial services segment in Singapore posted an estimated CAGR of 8.5% from 2022 to 2024, outpacing the broader financial sector's 4.7% average growth, highlighting the accelerating role of payment firms and fintech in the economy. This segment—dominated by payment service providers—benefitted from higher regional consumption and stable payments activity during the period, according to Market Research Singapore.
The overall financial services sector grew at an average of 4.7% per annum from 2021 to 2024, as reported by the Monetary Authority of Singapore (MAS) in its July 2025 annual report. MAS managing director Chia Der Jiun confirmed this figure at a media conference, noting the sector remained on track to meet the Industry Transformation Map (ITM) 2025 target of 4% to 5% growth per annum over 2021 to 2025. Growth was broad-based across banking, fund management, insurance, and auxiliary activities.
Auxiliary segment CAGR (8.5%) vs overall sector average growth (4.7%) over comparable periods.
CAGR (%) (%)Source: Orionmano Industries
Outpacing Core Banking and the Broader Sector
The auxiliary segment's expansion has consistently exceeded core banking growth in recent years. In 2025, auxiliary financial services expanded by 5.0%, outpacing banking's 4.4% growth, according to FPA Financial's February 2026 market report. The banking segment's performance was driven by a 6.1% rise in loans to residents, supported by a turnaround in manufacturing lending and a pickup in consumer lending including housing loans. Loans to non-residents increased 3.4%, aided by stronger lending to the Americas.
Singapore's financial sector overall grew 6.8% in 2024, more than doubling the 3.1% expansion recorded in 2023, as reported in the MAS annual report and the Economic Survey of Singapore 2024. The finance and insurance sector accounted for approximately 14% of Singapore's GDP. Deputy Prime Minister and MAS chairman Gan Kim Yong noted that growth was broad-based across segments including banking, fund management, insurance, and activities auxiliary to financial services, which largely comprise payments firms.
The financial services sector is projected to grow at a CAGR of 4.0% from 2024 to 2029, according to Market Research Singapore. This moderated pace reflects expectations that the unusually strong growth of recent years will temper amid global uncertainties.
Structural Drivers: Payments, Regional Consumption, and Digitalisation
Payment players drove auxiliary segment growth by capitalising on higher spending across the region and stable payments activity, according to FPA Financial. Digitalisation and the growing adoption of AI tools are enhancing the sector's capabilities, supporting continued expansion.
Singapore's role as a global financial hub underpins these trends. Assets under management (AUM) crossed S$6 trillion for the first time in 2024, growing 12.2% year-on-year to S$6.07 trillion. MAS managing director Chia Der Jiun attributed this growth to both traditional and alternative sectors, including private equity, venture capital, hedge funds, real estate funds, and real estate investment trusts. Net inflows into Singapore grew 50% in 2024 from 2023, as fund-raising activities recovered amid improving investment sentiment. The number of fund management companies reached 1,298 by end-2024.
The wealth management sector experienced strong growth, with the Republic continuing to serve as a "trusted and attractive wealth management centre underpinned by high standards of regulation," according to MAS. Banks' wealth businesses are expected to grow at 5–6% CAGR through 2040, according to DBS's Singapore 2040 report, reflecting structural demand for wealth management services in Asia.
Outlook: Sustained but Moderating Growth
MAS has warned that financial sector growth is unlikely to continue at the unusually strong pace of recent years. Chia Der Jiun stated in July 2025 that "we do not expect financial sector growth to continue at the pace of the last few years," citing uncertainties over trade deals, tariffs, and potential trade conflicts. "There is still too much uncertainty. There are still a lot of things that we do not know at this point," he added.
The financial services sector is projected to grow at a CAGR of 4.0% from 2024 to 2029, according to Market Research Singapore. This represents a moderation from the 4.7% average of 2021–2024 but still outpaces expected core banking growth over the same period.
Structural forces continue to support medium-term expansion. Digitalisation and AI adoption are enhancing capabilities across payment services and wealth management. Singapore's position as Asia's leading financial centre is strengthening, with AUM having more than doubled to over S$6 trillion in eight years and the finance sector's share of GDP projected to rise to 15% by 2040, according to DBS. The wealth management segment remains a key growth driver, with banks' wealth businesses expected to grow at 5–6% CAGR through 2040, supported by strong inflows and tax incentives such as the Variable Capital Company structure.
The auxiliary segment's momentum is expected to moderate alongside the broader sector, but structural drivers like digital payments and wealth management should keep it outpacing traditional banking over the medium term.
