MAS signs FinTech Co-operation Agreement with the central bank of the Republic of the Philippines
Above photo: Bangko Sentral ng Pilipinas (BSP) Governor, Mr. Nestor A. Espenilla, Jr. and the Monetary Authority of Singapore (MAS) Managing Director, Mr Ravi Menon at the signing of the BSP-MAS FinTech Co-operation Agreement/ Credit: MAS
The Bangko Sentral ng Pilipinas (BSP) and the Monetary Authority of Singapore (MAS) today signed a FinTech Co-operation Agreement (CA) to promote innovation in financial services in their respective markets. The BSP-MAS CA was signed at the sidelines of the 2nd Singapore FinTech Festival.
In line with other FinTech Co-operation Agreements , the CA provides a framework for co-operation and collaboration between the two authorities relating to FinTech. The authorities will be able to refer promising FinTech firms to each other, share emerging FinTech trends and developments, and facilitate work on FinTech projects together.
These projects could involve tapping on new financial technologies, like distributed ledgers, to provide innovative solutions to industry problems, such as facilitating faster cross-border payments and streamlining “know-your-client” (KYC) processes.
Mr. Nestor A. Espenilla, Jr., Governor, BSP, said, “The agreement serves as a seal of commitment between BSP and MAS to elevate financial innovation in both jurisdictions. The CA provides avenues for greater collaboration through a more defined structure and referral system for FinTech players between the innovation functions of each authority. The BSP looks forward to exciting times ahead as the CA unlocks diverse opportunities for new collaborations to prosper that maximize benefits of innovative technologies. This would ultimately pave the way for a more progressive, modern and inclusive financial system.”
Mr Ravi Menon, Managing Director, MAS, said, “MAS and the BSP are like-minded in their focus on harnessing financial technology to reduce inefficiency and benefit individuals and businesses. This Cooperation Agreement between our two agencies provides a framework for promoting financial innovation not only in our countries but can also potentially contribute to broader efforts in ASEAN.”
In his speech at the Singapore FinTech Festival on November 14, Mr. Ravi Menon, MD of MAS, had highlighted building a network of international links as one of the key strategies for Singapore’s FinTech journey.
This is the 16th FinTech co-operation agreement signed by MAS. Previously agreements have been signed with Abu Dhabi, Australia, Denmark, France, Hong Kong, India, Japan, Malaysia, Poland, South Korea, Switzerland, Thailand and the United Kingdom, the Association of Supervisors of Banks of the Americas.
Some of the co-operation agreements also include joint innovation projects. For instance, MAS and the Hong Kong Monetary Authority will jointly develop the Global Trade Connectivity Network, a cross-border platform for trade finance using distributed ledger technology. MAS and the Bank of Thailand have agreed to work together to link PayNow and PromptPay, their respective real-time, 24/7 payment systems for making payments from one bank account to another.