MAS ties up with Abu Dhabi to nurture Fintech ecosystem

14 March 2017   Category: News, Asia, Singapore, United Arab   By Asia Asset Management

Singapore’s central bank has entered into a partnership with Abu Dhabi Global Market (ADGM) – a global financial centre in the United Arad Emirates – to develop financial technology (fintech) ecosystems and support financial innovation.

The Monetary Authority of Singapore (MAS) and the Financial Services Regulatory Authority (FSRA) of ADGM have signed a cooperation agreement that establishes a strategic framework for both regulators to help start-ups and innovators to better understand the regulatory regime in each jurisdiction, and provide support through the application and authorisation process, MAS says in a statement.

The regulators will also jointly undertake and explore projects on the application of key technologies, including digital and mobile payments, blockchain and distributed ledgers, big data, flexible platforms, and other new technologies.

The Asia and the Middle East and North Africa (MENA) region “has immense growth potential and a large underserved financial sector,” Richard Teng, chief executive officer, FSRA of ADGM, says in the statement.

“The cooperation that is forged with ADGM marks another step towards strengthening links between regulators, and fostering synergies in promoting innovation and developing capabilities through international cooperation,” says Sopnendu Mohanty, chief fintech officer at MAS.

“The agreement will open up new avenues and create opportunities for fintech firms in Singapore and Abu Dhabi looking to expand into each other’s markets,” he adds.

MAS formed a Financial Technology & Innovation Group in August 2015 to drive Singapore’s smart financial centre initiatives, underscoring the city state’s ambition to be a fintech hub. The group is responsible for formulating regulatory policies and developing strategies to facilitate the use of technology and innovation.

Meanwhile, the FSRA launched a regulatory laboratory last November, under which businesses can develop and test innovative solutions in a controlled environment, while supporting FSRA in the development of risk-appropriate and effective regulations for fintech innovation.