The central banks of Phillippines and Singapore have signed a collaborative deal focused on advancing innovation in the area of financial services or FinTech.
The central banks of the Phillippines and Singapore have signed a collaborative deal focused on advancing innovation in the area of financial services or FinTech.
The agreement was signed by the Monetary Authority of Singapore (MAS) and the Banhko Sentral ng Philipinas (BSP) at the sidelines of the 2nd Singapore FinTech Festival that was held in Singapore from November 13 to November 17 2017, as the official announcement said.
MAS is Singapore`s central bank and financial regulator that claims to promote sustained, non-inflationary economic growth. BSP stands for the central bank of the Republic of the Philippines, and the country`s independent central monetary authority that is responsible for maintaining price stability through sensible monetary policies that are conducive to a balanced and sustainable growth economy.
“MAS and the BSP are like-minded in their focus on harnessing financial technology to reduce inefficiency and benefit individuals and businesses“, according to Mr Ravi Menon, Managing Director, MAS.
As stated in the press release, the CA makes it possible for FinTech companies to refer each other, share emerging trends and development, as well as facilitate work on industry projects that are to be executed by both countries. These projects may possibly involve using new financial technologies like distributed ledgers that may assist in facilitating faster and more convenient cross-border payments and streamlining “know-your-client” (KYC) processes.
Menon added that the Cooperation Agreement (CA) between the two agencies provides a framework that strives to promote financial innovation in the two countries, as well as in the whole region. Mr. Nestor A. Espanilla, Jr., Governor, BSP, commented that the agreement would lead to greater collaboration through a more defined structure and referral system for industry players. He stated that this would also contribute to creating a more inclusive financial system, as the press release made clear.
It is to be seen how this financial technology agreement will affect the local ecosystem, and whether it would give the two countries even stronger competitive advantage on the global market.