MAS, IFC sign memorandum of cooperation to develop fintech innovation in Asia

Monetary Authority of Singapore (MAS) announced that it has signed a memorandum of cooperation with IFC, a member of the World Bank Group, in a move to establish and advance fintech innovation in Asia by developing the ASEAN Financial Innovation Network (AFIN).

With a focus to facilitate broader adoption of fintech innovation and development across the continent, the network will enhance economic integration within the ASEAN region. Also, through AFIN, the partners 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 plans to create an industry ‘sandbox’ in order to offer a cloud-based testing environment where, banks and fintech startups can build, develop and test digital finance and inclusion solutions.

“We believe that innovation and digital technology can play a decisive role in enhancing financial access for a wider population. MAS is pleased to partner with IFC and further its discussions with ABA to help establish an industry sandbox infrastructure that promotes real-time collaboration and financial innovation,” Sopnendu Mohanty, Chief fintech Officer, MAS, stated. “This industry sandbox will be a cloud-based marketplace for distribution of fintech solutions to financial institutions located in multiple jurisdictions. We hope that this platform could also spur discussions amongst participating regulators on cross-border policy harmonization across ASEAN.”

The signing of the memorandum took place during “Banking at a Crossroads”, IFC’s Digital Finance Partners Meeting 2017 in Singapore that saw over 150 senior-level executives from leading financial institutions, technology companies and fintech firms. The memorandum between MAS and IFC is the first step in an initiative that is expected to foresee ABA playing an important role in helping to expand access to financial services across the region.

“The initiative builds on IFC’s efforts to deepen access to finance for underserved segments of the population,” Vivek Pathak, IFC’s Director for East Asia & the Pacific, said. “AFIN will enable banks, microfinance institutions, and other financial services providers to innovate across channels, products, and processes. Such innovation can unlock opportunities to better serve their clients, address unmet needs in their markets, and achieve sustainability through lower costs and more efficient service delivery.”