The central bank of the Philippines and the banking regulator of Singapore signed an agreement to work closely on the development of fintech in their respective markets.
Bangko Sentral ng Pilipinas (BSP) and the Monetary Authority of Singapore (MAS) signed the agreement at the annual fintech festival in the city-state, according to a joint press release.
Under the framework of the contract, the two authorities will be able to refer fintech companies to each other, share emerging financial technology trends and develop joint fintech projects.
The authorities envisage programs to develop distributed ledgers, for faster cross-border payments and to streamline know-your-client processes.
Part of a Broader ASEAN Effort
The pact «provides a framework for promoting financial innovation not only in our countries but can also potentially contribute to broader efforts in ASEAN,» said Ravi Menon, the managing director of MAS, according to the statement.
The cooperation agreement fits nicely with a further treaty signed by the MAS also today. IFC, a member of the World Bank Group, MAS and the ASEAN Bankers Association (ABA) introduced a fintech sandbox as part of the ASEAN Financial Innovation Network. The network aims to support financial services innovation and inclusion in less developed markets within the ASEAN region, the participants of the deal said in a separate statement.
Encourage Policy Harmonization
The network will provide a platform for collaboration between ASEAN banks, microfinance institutions, non-banking financial institutions and regional fintechs.
«The platform will facilitate development and experimentation of innovative digital financial products and services,» the statement said.
The deal is also seen as a way to encourage a harmonization of policy among ASEAN member states, making the region more conducive for business and investment.
Companies such as Unionbank of the Philippines, Yoma Bank and Wave Money in Myanmar, VP Bank in Vietnam, City Bank in Bangladesh and Commonwealth Bank Indonesia have shown an interest in participating in a pilot phase as part of the fintech sandbox.
