Philippine and Singaporean monetary authorities on Thursday inked a cooperation agreement (CA) aimed at promoting financial services innovation in their respective markets.
The agreement between the Bangko Sentral ng Pilipinas (BSP) and the Monetary Authority of Singapore (MAS) provides a framework for cooperation and collaboration between the two authorities relating to financial technology or fintech.
In a joint statement, the BSP and MAS said they would refer promising fintech firms to each other, share emerging trends and developments, and facilitate work on joint fintech projects.
The projects could involve tapping new financial technologies such as distributed ledgers and providing innovative solutions such as facilitating faster cross-border payments and streamlining “know-your-client” (KYC) processes.
Bangko Sentral Governor Nestor Espenilla Jr. said the agreement was a seal of commitment to elevate financial innovation in both jurisdictions.
“The CA provides avenues for greater collaboration through a more defined structure and referral system for FinTech players between the innovation functions of each authority,” he said.
“This would ultimately pave the way for a more progressive, modern and inclusive financial system,” he added.
MAS Managing Director Ravi Menon said both monetary authorities were like-minded in their focus to harness financial technology to reduce inefficiency and benefit individuals and businesses.
“This Cooperation Agreement between our two agencies provides a framework for promoting financial innovation not only in our countries but can also potentially contribute to broader efforts in Asean [Association of Southeast Asian Nations],” he said.
The signing ceremonies were held at the sidelines of the ongoing 2nd Singapore FinTech Festival.