The Monetary Authority of Singapore (MAS) and the Magyar Nemzeti Bank (MNB) have entered into a co-operation Agreement (CA) in order to collaborate on various Fintech initiatives that will enhance Singapore and Hungary’s economy.
The CA aims to establish a framework for Fintech collaboration between both nations. It will make use of a referral mechanism to help Fintechs access each other’s financial markets. MAS and MNB have also agreed to exchange views and ideas on how to work with emerging markets and take advantage of the latest Fintech developments. Additionally, both countries will be helping each other by creating appropriate regulations for Fintech projects.
Sopnendu Mohanty, Chief Fintech Officer at MAS, stated:
“The CA highlights the strengthening Fintech partnership between MAS and MNB, and lays the foundation for us to harness Fintech for a smarter, more efficient and more inclusive financial sector in our respective countries. Our bilateral collaboration in fintech will help promote financial innovation and create new opportunities for our countries, as well as in our regions.”
Anikó Szombati, Chief Digital Officer at MNB, remarked:
“MAS is a unique partner in MNB’s international innovation network and we have high hopes that under the CA our cooperation can bear fruit soon for both the Singaporean and the Hungarian Fintech ecosystem. Platforms for cooperation has changed drastically due to COVID-19, but the situation can also enhance innovative ideas in digital finance, what we, together with MAS would like to oversee and steer from the frontline.”
As reported in November of last year, a senior law firm executive had said that Hungary is “behind everyone” when it comes to adopting the latest digital banking tech. The nation’s central bank had also issued a warning last year stating that traditional lenders might be forced out of the market due to competitive Fintech firms (but this may have changed due to the COVID-19 pandemic that has had a severe negative impact on most Fintech lenders).
As covered in May 2020, Hungary’s reserve bank had said that Fintech adoption is relatively slow, as most consumers are still using cash. Meanwhile, in Singapore, the industry is growing rapidly as the city-state’s financial technology firms secured the most funding compared to all other ASEAN region Fintechs, according to a new report.