The Monetary Authority of Singapore (MAS) and Abu Dhabi Global Market (ADGM) have signed a “Cooperation Agreement” (CA) to encourage closer cooperation on the development Fintech. The agreement seeks to foster entrepreneurship and support innovation in financial services in both Singapore and Abu Dhabi. The new partnership was said to be the result of meaningful exchanges between the Fintech teams of MAS and the Financial Services Regulatory Authority (FSRA) of ADGM. Both Singapore and Abu Dhabi desire a robust Fintech ecosystem that supports innovation in the financial service sector.
The CA was signed by Sopnendu Mohanty, Chief Fintech Officer of MAS and Richard Teng, Chief Executive Officer, FSRA of ADGM.
The agreement will establish a strategic framework for both regulators to assist start-ups and innovators to better understand the regulatory regime in each jurisdiction and provide support through the application and authorisation process. Both agencies will also undertake and explore joint innovation projects on the application of key technologies including digital and mobile payments, blockchain and distributed ledgers, big data, flexible platforms (API), and other new technologies.
“The cooperation that is forged with ADGM marks another step towards strengthening links between regulators, and fostering synergies in promoting innovation and developing capabilities through international co-operation,” stated Mohanty. “The Agreement will open up new avenues and create opportunities for Fintech firms in Singapore and Abu Dhabi looking to expand into each other’s markets. We look forward to greater knowledge exchange and deeper financial cooperation with the FSRA that will nurture a vibrant FinTech global ecosystem.”
Teng said they were delighted to embark on the partnership with MAS to advance innovation and the use of technology to promote growth in the financial sector and protect the best interests of investors in our jurisdictions.
“Asia and the MENA regions have immense growth potential and a large underserved financial sector. We hope that through closer collaboration with like-minded FinTech hubs, we are able to leverage the strengths and expertise of our markets to more efficiently address the immediate needs of the industry in respective regions and anticipate the demands of the future,” said Teng.
In 2015, MAS formed the Financial Technology & Innovation Group (FTIG) within MAS to drive its Smart Financial Centre initiatives. Singapore has decided Fintech innovation is of strategic importance to their economy and has positioned the country as a global Fintech hub. Singapore has formed multiple bilateral agreements with other countries to encourage Fintech growth.