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SINGAPORE: The Monetary Authority of Singapore (MAS) will launch a public consultation on Wednesday, November 14 to gather feedback on the proposal for creating a "sandbox" that will give financial institutions and non-state actors faster access to the market. his so-called sandboxes.
This, along with the decision to set aside $ 35 million to help smaller financial players tap regulatory technology (RegTech), was announced by Education Minister Ong Ye Kung at the Fintech Festival. from Singapore.
MAS has been among the first to adopt "regulatory sandboxes" where companies that offer innovative financial technology ideas (fintech) can test them in a confined and regulated environment with real customers before publicly publishing them. .
Describing this as a learning experience to date for the financial regulator and the companies involved, Mr Ong said the MAS would develop this approach by creating the "express sandbox".
These will be "sandboxes" in which it will be easier to enter within 21 days, said Mr. Ong, who is also a member of the MAS board of directors.
With predefined limits, he added that they will be designated for activities where the risks are low or already well understood by the market and regulatory authorities.
"We can make the system more flexible to allow tests and experiments to proceed more quickly."
Continuing by explaining why Singapore does not adopt a laissez-faire approach, Mr. Ong said there may be various concerns in urban areas and that regulation could help to "harmonize" them.
In the same vein, he cited electronic payment as an example.
In a laissez-faire regime, electronic payments can grow so quickly that they invade the entire financial system and bypass traditional financial services. Despite its convenience, this can cause concern, Ong said.
On the one hand, there is the problem of interoperability, because different electronic or mobile wallets tend to be closed-loop systems, which do not "talk" to each other.
Over time, this really stifles competition.
As a result, Singapore "has decided very consciously to take a little more time" in electronic payment, said Mr Ong.
At present, the country system is "unique", the difference being in its back-end infrastructure called FAST (Fast and Secure Transfer) transaction system.
Launched in 2014, FAST is the underlying PayNow network – the service that has paved the way for instant money transfers via mobile phone numbers or NRIC numbers.
MAS is also considering opening FAST to non-bank players and has launched a national QR code called SGQR in September.
"An electronic payment system with a back-end system and a QR code, but with many intermediary players," said Ong.
"We have been slow to implement this architecture because the payment is fundamental. We all use payments and we use them in all sectors of the economy. We must do things well. "
He added, "By ensuring open architecture and interoperability, we encourage competition and, over time, foster innovation. Therefore, laissez-faire does not mean innovation in our context. "
MAS encourages financial institutions to use RegTech as a way to overcome regulatory difficulties, such as the submission of data requested by the central bank of Singapore.
On a previous announcement to make all data machine readable and eliminate duplicate applications, Ong said DSS will allocate $ 35 million to help small banks and insurers exploit the technology.
For this, more details will be announced in the coming months.
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