MAS and IFC to advance FinTech innovations in Asia

SINGAPORE — The Monetary Authority of Singapore (MAS) and the IFC, a member of the World Bank Group, will work together to facilitate broader adoption of financial technology (FinTech) innovation and development within the region. In a joint announcement on Tuesday (May 23), the two institutions announced the establishment of the ASEAN (Association for South East Asian Nations) Financial Innovation Network (AFIN) aimed to enhance economic integration within the ASEAN region.

“We believe that innovation and digital technology can play a decisive role in enhancing financial access for a wider population,” said Mr Sopnendu Mohanty, chief FinTech officer, MAS. Collaboration between Singapore’s central bank, IFC and the ASEAN Bankers Association have helped establish a cloud-based marketplace for distribution of FinTech solutions to financial institutions located in multiple jurisdictions “to spur cross-border policy harmonisation across ASEAN,” he said.

Through AFIN, MAS and IFC plan to establish a regional network to help financial institutions, FinTech firms and regulators address issues of connectivity, local compliance and cross-border compatibility. AFIN will also evaluation options to create an industry “sandbox” to provide a cloud-based testing environment through which banks and FinTech players can develop, test and refine digital finance and inclusion solutions.

“The initiative builds on IFC’s efforts to deepen access to finance for underserved segments of the population,” said Mr Vivek Pathak, IFC’s director for East Asia and the Pacific. “In today’s world it is feasible to reach these segments of the population at a fraction of the cost and at a speed that was not feasible earlier. New business models resulting from digital transformation of financial services and FinTech adoption in the region can create new markets that will lead to a higher level of prosperity.”

The signing took place during the IFC’s Digital Finance Partners Meeting in Singapore, which brought together over 150 senior-level executives from leading financial institutions, technology companies and FinTech firms from around the globe.