February 23, 2024

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Singapore mainstreams its fintech sector

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One thing that the pandemic has shown about payments is that speed, reliability and near-universal access have never been more important. For Singapore, the first wave of non-bank financial institutions (NFIs and Fintechs), are now connected to FAST, Singapore’s real-time payment rails.

Financial tech firms believe this move signifies the growth of the local fintech industry. By giving firms access to FAST, previously the exclusive domain of banks, regulators are enabling greater competition and innovation in the payments space. Aimed ultimately to the benefit of consumers, near-universal access has never been more important in a world powered by instantaneous digital interaction.

According to them, whether it is listening to music or taking an online class, consumers are benefitting from a better experience using tech — one that is becoming faster, cheaper, more convenient and most importantly, offers a variety of choice, no matter where you are.

In contrast, they also believe that the financial services industry has largely not kept pace; while fintechs have gradually begun to fill this void by offering a variety of services that were traditionally the domain of the incumbent banks.

For the consumer, on the other hand, the benefits of this seemingly obscure change to the payments plumbing may not seem obvious. But direct participation in FAST helps non-banks level the playing field with traditional banks, increases competition and allows fintechs to offer a better, cheaper and faster service in a digital world. Beyond this, fintechs gain better control over the entire customer experience when connected directly to the national payment system, rather than having this access through a bank.

Fintechs said that this move will also curtail delays, inefficiency and high fees. A recent report from The World Bank’s Remittance Prices Worldwide showed that sending remittances costs an average of 6.75% of the amount sent — far higher than the United Nations’ goal to push this down to lower than 3%. More middlemen in the money movement process mean additional costs and delays resulting in a sub-optimal experience for the end consumer, especially for small businesses.

Financial tech firms are also looking forward to building more competitive products that make payments even faster and cheaper for citizens. They also added that for the fintech sector to thrive, policymakers need to manage risks while encouraging growth. Striking this balance between regulation and fintech innovation is not easy, especially with the rapid speed of technological change.

Accordingly, as reported by OpenGov Asia, The Monetary Authority of Singapore (MAS) pushed the commencement of the Singapore Payment Services Act (PS Act). The new PS Act will enhance the regulatory framework for payment services in the country, strengthen consumer protection and promote confidence in the use of e-payments. The PS Act adopts an activity-based licencing framework in recognition of the different kinds of activities and new developments in payment services.

Just recently, as also reported by OpenGov Asia, Enterprise Singapore (ESG), Infocomm Media Development Authority (IMDA) and the SG Digital Office (SDO) announced that 10,000 stallholders – more than half of Singapore’s stallholders – have adopted e-payments. 10,000 hawkers using e-payments, with transactions growing four times since June 2020. Transactions volume and value for January 2021 also crossed the 1.2 million and S$14 million mark respectively for the first time.

As one of the centres of innovation in the world, Singapore is well-placed to foster a more open and transparent payment ecosystem that benefits consumers. The country aims to lead the charge in encouraging constructive competition and closer collaboration in the sector.

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Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

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CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

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Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

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SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

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HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

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IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

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