A new virtual office for financial technology start-ups will open in Singapore next month.

The online hub forms part of a plan by Singapore’s government to position itself as one of Asia's top locations for financial technology firms.

Singapore's central bank (MAS) and the National Research Foundation (NRF) will launch the portal on May 3rd, helping with funding, strategy and branding.

The city-state benefits from a fintech-focused regulator which has supported start-ups with a £100m dedicated fintech fund.

This week MAS said while financial technology is upending many different aspects of the financial industry, it does not necessarily pose a challenge for traditional banks.

Instead, fintech – which involves using technology to devise new financial services and products – can be seen as a partner that will enable banks to create better products for customers.

"Fintech firms are not here to challenge you. They are here to partner you,” said MAS chief fintech officer Sopnendu Mohanty said at the Financial World: API Conference.

One technology that banks are increasingly interested in is the blockchain – a continually growing database that is distributed among users, most popularly used to keep a public record of bitcoin transactions.

"Blockchain’ became something of a 2015 buzzword, but that must not obscure the fact it has the potential to add a lot of value to the financial industry," said Ryan Cuthbertson, HSBC Securities Services' head of products, custody and clearing, in a recent note.

"In particular, the system provides a decentralised ledger, immediacy of transfers, as well as a full audit trail. It’s still at the stage where banks are working on the proof of concept, and how it can be integrated into the post-trade space."

In the UK, the sector has now grown from its disruptive roots into an industry in its own right – generating £6.6b in revenue in 2015 according to a recent report by Ernst & Young and HM Treasury.