Singapore is widely recognised for its burgeoning FinTech hub along with London and New York. Its central bank and the finanical regulatory authority, the Monetary Authority of Singapore (MAS) has been playing a vital role in bringing the nation to this stage.
Today, it has signed a Memorandum of Understanding (MOU) with the Association of Supervisors of Banks of the Americas (ASBA) to boost FinTech ties between Singapore and the Americas. This MoU provides a framework for FinTech cooperation between Singapore and 36 ASBA member countries. ASBA comprises public and private financial institutions in the United States, Latin America, the Caribbean, and Spain.
Rudy Araujo, Secretary General, ASBA, in a statement, said, FinTechs will progressively change the region’s financial ecosystem. He believes this change will occur in an environment characterized by an ample competition, transparency, sound risk management, and client-centeredness. Rudy added,
Thus, by uniting efforts with the MAS, we expect to support the development of a regulatory and supervisory framework that while supporting financial stability, nurtures innovation, and promotes market transparency and proper conduct.
Under the aforementioned framework, both the entities will be seen exploring potential joint innovation projects on technologies including blockchain and big data. In addition, they will work towards facilitating discussions on issues of mutual interest, such as emerging FinTech trends and other pertinent issues on innovative financial services. Sopnendu Mohanty, Chief FinTech Officer, MAS, in a statement, said,
FinTech is fundamentally about ideas and enterprise flowing between cities. It requires bringing together a range of stakeholders. This MOU embodies MAS’ and ASBA’s resolve in accelerating the growth of FinTech in the respective regions, through increased collaboration and exchanges between our respective FinTech ecosystems.
MAS had recently set up a regulatory sandbox framework for the testing of fintech innovations in a more free, secure, and controlled environment. It has committed $162.5 million over the next five years to attract FinTech firms to set up their innovation labs in Singapore. Just a day before, the authority had released a public consultation paper on proposals to facilitate the provision of robo-advisory services in the nation.