Fintech has been taking every country by storm. Financial institutions throughout the globe have already realized the importance of innovating. As the number of fintech patrons increases, so does the need to impose a regulatory framework. To make sure that fintech and regulations complement each other, it’s extremely important for policymakers to create guidelines that don’t run the risk of being too loose and too strict.
The need for innovation has also caught up with the banking industry of Singapore. Consumers now want something different and the need to collaborate and innovate is evident. The Monetary Authority of Singapore acknowledges this fact and has recently started an initiative for the enhancement of fintech in the country. They realized the importance of creating a regulation for fintech by proposing a sandboxed environment for pilot programs and startups within this growing industry. Provided that the regulations will facilitate innovation and not hinder it, these guidelines might prove to be a good thing for fintech.
The driving force of fintech is innovation; a concept clearly understood by the Monetary Authority of Singapore. By proposing this regulatory sandbox, it speaks volumes on how MAS is dedicated in removing anything that can impede or slow down the development of fintech. This would definitely aid Singapore in boasting the title of becoming Asia’s biggest fintech hub.
Once this proposal is approved by the Singapore government, fintech companies and startups have no reason to worry about regulatory guidelines, which gives them the freedom to experiment and create new innovations.
MAS Deputy Managing Director Jacqueline Loh told the media, “MAS aims to provide a responsive and forward-looking regulatory approach that will enable promising fintech innovations to develop and flourish. The sandbox will help reduce regulatory friction and provide a safer environment for fintech experiments. We believe this will give innovations a better chance to take root.”
This fintech initiative is not the first one to be launched in Singapore. As of April this year, SG-Innovate was created to support the country’s ambition to become Asia’s fintech hub. HSBC and Standard Chartered are also helping Singapore reach their goal by establishing innovation labs within the country.