Monetary Authority of Singapore (MAS) managing director Ravi Menon has set out the six components of the FinTech ecosystem that is being shaped in Singapore.
Representing a collaborative effort between the public and private sectors over the past four years, the financial ecosystem is customised in line with users’ needs, invisible to their eyes and focused on a seamless user experience.
According to Mr Menon, who was speaking at the Singapore FinTech Festival yesterday, the six components are:
- People: without people – their skills, their energy, and their enterprise - there is no FinTech
- Identity: establishing the customers whom banks and insurers are dealing with and authenticating information about these persons is the first step in any digital transaction
- Payments: swift, secure, and seamless payments are fundamental to a digital economy
- Data governance: ensuring the responsible use of data and seamless and secure flow of data
- Applied research: building strong capabilities in FinTech-related research directed at solving real-world problems
- Platforms for innovation: creating mechanisms to foster collaboration and co-creation, to translate ideas into products; bridge problems with solutions
This ecosystem will allow a world where "insurance is intuitive", Mr Menon said. “How many of us truly understand our insurance policies, or are fully confident they will pay out when we need them? Imagine a world where the pay-out is automatically triggered by events and is instantaneous; no more lengthy claims forms, no more waiting time, no more opaque processes.”
He also pointed out that MetLife’s Lumenlab is already working on making this ‘intuitive insurance’ a reality for gestational diabetes insurance. The experimental product is currently undergoing testing in the MAS’ regulatory sandbox.
This is the third year in which the Singapore FinTech Festival is held. The Festival runs until the end of the week.