The Monetary Authority of Singapore and UNCDF to Collaborate on Driving Financial Inclusion in the ASEAN Region
The Monetary Authority of Singapore (MAS) and the United Nations Capital Development Fund (UNCDF) have formed a strategic partnership under the ongoing UNCDF’s SHIFT (Shaping Inclusive Finance Transformations) programme to facilitate the development and access to digital financial services in the ASEAN region.
To accelerate financial access and usage, MAS and UNCDF SHIFT will explore opportunities to work on the digitisation of low-tier financial institutions (Financial Cooperatives/Micro Finance Institutions/Banks) in ASEAN, particularly in extending last-mile distribution to the base of the pyramid in these markets. This collaboration will give UNCDF and MAS the means to rapidly digitise the operations of these Financial Service Providers, enabling them to better aid financial access and usage to serve the marginalised population, including women in these countries.
As the first initiative under the collaboration, MAS is a Supporting Partner of UNCDF SHIFT’s latest Challenge Fund Window. The Fund provides co-funding grants for innovative, scalable business models that foster regulated international remittances to Cambodia, Lao PDR, Myanmar and Viet Nam (CLMV) for women, and concurrently increase adoption and usage of remittance-linked financial products and services in CLMV.
Remittances for these four countries contributed US$17.2 billion. The growing influx of international remittances to CLMV is playing a significant role in the economic development of the Mekong region and can act as a catalyst for the development of the local digital financial services ecosystem by providing greater access to basic financial services.
The Challenge Fund mechanism incentivises innovations in women-inclusive business models that financial institutions would not ordinarily be prepared to pursue. The Fund aims to support projects for which social returns are assured, but financial returns may not yet have been proven.
The UNCDF SHIFT Challenge Fund Window focusing on remittances is open to applicants from 7th April to 9th June 2017, and the grant awards will be finalised by October 2017.
MAS will host a SHIFT Challenge Fund workshop in Singapore and this collaboration on the Challenge Fund Window will culminate in the opportunity for selected applicants’ projects to be showcased at the Singapore FinTech Festival, to be held from 13 to 17 November 2017.
Mr Sopnendu Mohanty, Chief FinTech Officer, MAS, said, “We believe that financial services have a role to play in the economic empowerment of women and the marginalised. It is with this belief that MAS is pleased to partner with UNCDF SHIFT, as this is a meaningful social initiative that will create solutions to provide greater access to basic financial resources. We look forward to recognising the innovative ideas from the recently launched Challenge Fund Window at the Singapore FinTech Festival and hope that this will spur more partnerships in the area of financial inclusion.”
Mr Feisal Hussain, Senior Regional Technical Advisor and SHIFT Programme Manager said, “The challenge in providing last mile financial services requires multiple partnerships and innovations. We are pleased to partner with MAS to promote financial inclusion initiatives that benefit the financially excluded, particularly low-income individuals, women and small businesses, across ASEAN. The collaboration between our respective organisations will further enhance support at the country and regional levels to both the private sector and policy makers.”
As Singapore's central bank, the Monetary Authority of Singapore (MAS) promotes sustained, non-inflationary economic growth through appropriate monetary policy formulation and close macroeconomic surveillance of emerging trends and potential vulnerabilities. It manages Singapore's exchange rate, foreign reserves and liquidity in the banking sector. MAS is also an integrated supervisor overseeing all financial institutions in Singapore -- banks, insurers, capital market intermediaries, financial advisors, and the stock exchange. With its mandate to foster a sound and progressive financial services sector in Singapore, MAS also helps shape Singapore's financial industry by promoting a strong corporate governance framework and close adherence to international accounting standards. In addition, it spearheads retail investor education. MAS ensures that Singapore's financial industry remains vibrant, dynamic and competitive by working closely with other government agencies and financial institutions to develop and promote Singapore as a regional and international financial centre.
UNCDF is the UN’s capital investment agency for the world’s 48 least developed countries. With its capital mandate and instruments, UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development.
UNCDF’s Shaping Inclusive Finance Transformations (SHIFT) programme aims to expand women's economic empowerment through financial inclusion. SHIFT advances financial markets by changing the behaviour of market actors to stimulate investment, business innovations and regulatory reform in growing inclusive enterprises. SHIFT catalyses innovative partnerships to accelerate financial inclusion and women's economic participation in the least developed countries of the ASEAN region. The SHIFT programme is jointly co-funded by UNCDF and the Australian Government Department of Foreign Affairs and Trade (DFAT).
The challenge in providing last mile financial services requires multiple partnerships and innovations.
Senior Regional Technical Advisor and SHIFT Programme Manager