Metro Manila (CNN Philippines, November 17) — Philippines and Singapore central bank officials inked Thursday an agreement to advance financial technology (FinTech) cooperation that is expected to lead to a more modern and innovative finance services in the two countries.
The Bangko Sentral ng Pilipinas (BSP) and Monetary Authority of Singapore signed the FinTech Cooperation Agreement (CA) at the sidelines of the 2nd Singapore FinTech Festival, they said in a joint statement.
Financial Technology or FinTech companies are those that provide financial services using modern software or technology. They have been gaining more and more traction as people become accustomed to digital platforms.
The agreement, which provides a framework for future FinTech collaboration between both agencies, paves the way for the adoption of newer, more modern finance services in their markets.
BSP governor Nestor Espenilla, Jr. said in the statement the agreement will foster a “more progressive, modern, and inclusive financial system.”
“The agreement serves as a seal of commitment between BSP and MAS to elevate financial innovation in both jurisdictions,” he said.
“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,” Espenilla added.
Under the agreement, both parties can refer up-and-coming FinTech firms to each other. They will also be able to share developments in the industry and collaborate in facilitating FinTech projects.
Possible projects include the adoption of more modern and secure technologies like distributed ledgers, which decentralize data among multiple parties and make it less susceptible to cyber attacks.
The central bank said such projects could be used to “provide innovative solutions” to the industry’s problems, including speeding up payments across countries, and the “know-your-client” vetting processes.
MAS Managing Director Ravi Menon, said such agreements could “potentially contribute” to broader financial innovation efforts in the Association of Southeast Asian Nations (ASEAN).
“MAS and the BSP are like-minded in their focus on harnessing financial technology to reduce inefficiency and benefit individuals and businesses,” he said.
