The Singapore Fintech Association (SFA), a cross-industry non-profit initiative that’s focused on supporting collaboration between all market participants and stakeholders in the financial technology industry, has introduced a digital self-assessment framework to improve working relationships between companies.
According to the association, the framework should expedite partnerships between Fintechs and traditional financial service providers, while promoting a sustainable outsourcing relationship.
The SFA confirmed that it would remain focused on helping companies follow relevant regulatory guidelines. The association said it will set up the Fintech Service Provider (FSP) Compliance Readiness Framework, which should make it easier for firms to move to digital platforms.
The compliance framework will come with a self-assessment toolkit that will help Fintech companies determine whether their operations comply with relevant regulatory guidelines and policies.
Approximately 80% of Fintechs in Singapore provide technology solutions to local service providers, which indicates that there needs to be an efficient way to ensure that companies are complying with relevant laws, the SFA said.
The compliance framework has reportedly been developed with assistance from Big Four auditor PricewaterhouseCoopers (PwC). The framework was announced as part of the support package introduced by the Monetary Authority of Singapore (MAS) in April 2020.
The support package has been introduced to provide financial relief to local businesses that may be struggling due to COVID-19.
Wong Wanyi, fintech leader at PwC Singapore, stated:
“Over the last few years, technology risk management is a key area that financial institutions look at when working with fintech. However, many existing frameworks for technology evaluation are suited towards more mature service providers. This new self-assessment framework will provide an early indicator of where the fintechs’ control environment stand when it comes to technology risk.”
As reported in April 2020, the Singapore Fintech Associationa and Razer Fintech announced that they’d be offering $100,000 to $1.5 million to eligible local Fintech companies.
Last month, the Monetary Authority of Singapore, Singapore Fintech Association and AMTD introduced a grant program to support Fintechs.