SINGAPORE (July 1): Startups, as well as banks, are working on the next generation of banking and financial technology and there is now a proliferation of incubators, accelerators, ‘boot camps’ and ‘labs’ in the city state.

Is it time to join the fintech frenzy? Here are 5 reasons why you should.

1) The banks are in on it!

All three local banks – DBS, OCBC, and UOB – have their own initiatives to nurture or partner with fintech startups.

At UOB, for instance, there are collaborations with venture capitalists and private equity firms to support startups.

There is also a partnership with Infocomm Investments to set up The FinLab, an accelerator that is helping nine teams develop business ideas that focus on payments, wealth management, big data analytics, lending and blockchain technologies.

2) Other financial services institutions too want in

In May, Allianz launched its Asia Lab in Singapore, which will work with start-ups, enterprises and institutions to develop market concepts and prototypes in the areas of connected healthcare, mobility and smart city-living.

3) Even Singapore’s central bank is jumping on the fintech bandwagon

In addition, the Monetary Authority of Singapore is organising a fintech festival in November that will give awards for the most innovative fintech solutions and feature a “hackcelerator” offering teams $20,000 in cash, mentorship and development infrastructure.

4) Investments galore

According to consulting firm Accenture, in 2015, there was a 75% increase in investments in fintech globally. In Asia-Pacific alone, investments quadrupled over 2014. In 1Q2016, investments jumped 500% from the same period the year before, to US$2.6 billion ($3.5 billion).

5) Banking is at a “tipping point”

Citigroup researchers say customers’ relationships with banks and their finances have changed fundamentally with the advent of the internet and smartphones. At the same time, investment in financial technology outside of banks has risen exponentially over the past decade.

Consumer banking is at a “tipping point”, Citigroup says. The disruption would result in risks to revenue and job losses.

From crowdfunding to mobile payment platforms and peer-to-peer lending, it seems start-ups are slowly but surely eating the bankers’ lunch.

Find out if banks looking to co-opt fintech start-ups in order to keep them from competing, in our Enterprise cover story, “Fintech frenzy”, in The Edge Singapore (week of July 4 – 10), available at newsstands now