As far as innovations in the financial world are concerned, Fintech has been the biggest development in the industry over the past half a decade or so. In that regard, it is not really a surprise that Singapore, one of the world’s most important financial hubs, has become a hotbed for Fintech innovation during this period. It has now emerged that the country is now looking to further strengthen the sector with the development of a new Innovation Hub. The centre is being created by the Bank for International Settlements (IBS), which aims to create more of a connection between central banks on a range of issues related to Fintech.
More importantly, the Monetary Authority of Singapore (MAS) has welcomed the establishment of this hub and considering the importance of the industry, and it does not come as a surprise. In total, the IBS is setting up three such hubs and other than the one in Singapore, two others are being established in Hong Kong and Basel, Switzerland. Over the years, it has been noticed that there is a bit of a disconnect between the Fintech industry and central banks all over the world, which is why it is a significant development. This hub will also allow central bank executives have a much better idea of the products and technologies that are being used in the sector. At the end of the day, greater collaboration between the two parties will come in as a significant boost for the financial system in general.
The managing director of MAS, Ravi Menon, spoke about the dynamic way in which technology is upending the financial industry and how this innovation hub will help. He said,
To fully harness the benefits of these innovations while ensuring the resilience of the financial sector, central banks must also innovate – to modernise the technology infrastructure and regulatory arrangements that underpin digital finance and the digital economy.
It is a huge development for not only Singapore but for the financial system in general, and it is possible that it will bear fruits in the foreseeable future.