Singapore will make regulatory changes to facilitate the use of electronic payments, the central bank said on Friday, as the city-state aims to become a major center for financial technology (fintech). “Our vision is to make Singapore an electronic payments society, a society that spurs innovation in payments technology, that gives consumers maximum convenience and confidence in making payments,” said Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS).
MAS will streamline existing money changing, remittance and payment systems law into a single piece of legislation to govern both traditional and innovative payment businesses, Menon said. “We will enhance the provisions for consumer protection and strengthen cyber security requirements,” he added. Under the updated framework, payment service providers will need only one license to conduct multiple payment activities, Menon said. “Fintech is changing the face of payments. It is not efficient for companies to be regulated under two pieces of legislation which were not written with the fintech solutions of today in mind.”
Singapore is rushing to reinvent itself as Asia’s financial technology hub to defend off a regulatory threat to its wealth management industry and revive a sluggish economy. Menon was speaking at a conference on fintech and financial inclusion jointly organised by Singapore Management University and the International Monetary Fund.