The World Bank Group and the Monetary Authority of Singapore have signed a memorandum of cooperation, agreeing to establish and develop the ASEAN Financial Innovation Network.
The agreement will aim to facilitate broader adoption of financial technology innovation and development, and enhance economic integration within the ASEAN region.
Through the ASEAN Financial Innovation Network (AFIN), International Finance Corporation (IFC) and the Monetary Authority of Singapore (MAS) plan to establish a regional network to help financial institutions, fintech firms and regulators address issues of connectivity, local compliance and cross border compatibility.
Untapped Potential of ASEAN
AFIN will also evaluate 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.
Further to the 2016 Singapore FinTech Festival, this initiative has emerged from discussions between IFC, MAS and the ASEAN Bankers Association (ABA), and through their engagement with the broader financial and FinTech ecosystem in the region.
First Step
This memorandum is the first step in an initiative which will also foresee ABA playing an important role in helping to expand access to financial services across the region.
As well as the now firmly established fintech hub of Singapore, Thailand has also emerged as a new potential hub for financial technology startups to base themselves in as they work to penetrate the untapped ASEAN.
