SINGAPORE: The Monetary Authority of Singapore (MAS) has set up a global network to strengthen Singapore’s position as a fintech hub and improve connections with other countries.
The Global Finance and Technology Network (GFTN) will support the central bank’s efforts to develop and grow Singapore’s fintech ecosystem, MAS said on Wednesday (Oct 30).
The network’s mission is to “harness technology and foster innovation through global partnerships”.
Former MAS managing director Ravi Menon will be the chairman of the GFTN board of directors.
When asked why he was appointed to GFTN’s board and how it relates to his role as Singapore’s Ambassador for Climate Action, Mr Menon said the latter is still his main job.
“But as a retiree, I have a little bit of bandwidth, so I can also do this,” he said at a briefing on Wednesday.
He said the connections he made during his time in MAS led to his appointments in both roles and that he remains interested in technology.
“Both are actually issues that are very close to my heart – sustainability and innovation, the planet and people,” he said.
GFTN replaces Elevandi, a non-profit set up by MAS to foster dialogue related to fintech. It organised fintech conferences in several countries, including Japan, Switzerland and Ghana.
Elevandi’s people and assets will move to GFTN, where the work will be scaled up, said Mr Menon.
Besides organising forums, GFTN will offer advisory services, partnerships with digital platforms and investments into technology start-ups with the potential for positive social or environmental impact.
“We will provide these portfolio companies with patient capital, but more importantly, access to a global network of potential partners, buyers and suppliers through our existing platforms,” said Mr Menon.
He said Elevandi’s forum business was doing well, and had more invitations than it could handle. At the same time, it was starting to do some “adjacent” work as people were asking for advice on digital infrastructure.
“We’ve been doing some of this pro bono, we’ve been doing some of this informally, not with the full complement of staffing and capabilities,” he said.
GFTN will have four distinct businesses to grow, and it wants to expand its global footprint.
“It is basically Elevandi on steroids, without the negative connotations of course,” he said. There are currently 40 staff members, but that number is set to grow to “much more than 40 people”.
UNTAPPED POTENTIAL IN THE SOUTH
GFTN will also try to serve regions that have been overlooked. Mr Menon noted that innovation is not only emerging in London and Silicon Valley, but also in cities such as Nairobi, Jakarta and Sao Paulo.
There is “huge promise” and untapped potential in Sub-Saharan Africa, Latin America, the Middle East and North Africa, he said.
“If we do not address these gaps in talent, in infrastructure, in capital and in policy, we risk leaving behind entire regions and segments of the world population.”
GFTN will retain Elevandi’s not-for-profit structure and aims to be financially self-sufficient in three to five years.
Mr Leong Sing Chiong – deputy chairman of GFTN and deputy managing director for markets and development at MAS – said the central bank will provide GFTN with some grant funding to get it off the ground.
Mr Menon said the not-for-profit structure helped Elevandi be effective because it was not seeking to sell anything or make a commercial transaction.
The forums, advisory and platform services will operate on a capped profit basis to cover costs.
On the investment side, however, there will be a need to generate returns, and that part will be “commercially run”, he said.
ALL ROADS WILL LEAD TO SINGAPORE
Mr Menon said GTFN hopes Singapore will “massively become a hub” for providing technology and finance solutions.
“Because we are Singapore-based, Singapore-headquartered … all roads will come to Singapore. That benefits Singapore’s fintech ecosystem,” he said, adding that it would benefit the economy and create jobs.
He said that some Singapore start-ups and small and medium-sized enterprises went on a trip to Africa before the COVID-19 pandemic and were excited to make connections beyond Southeast Asia.
Similarly, the businesses in Africa were excited to connect with Asia through Singapore.
“These are very intangible benefits that (come) from connections,” he said. “Singapore is all about connectivity. We sit and connect to others, and the flows benefit us.”