UK and Singapore agree to ‘deepen’ Fintech cooperation

The UK and Singapore have entered into a new agreement to deepen cooperation on fintech to boost trade and innovation. On their seventh Financial dialogue in Singapore this month, the countries agreed on mutual priorities, including sustainable finance.

During the financial dialogue, the UK and Singapore agreed on a Memorandum of Understanding (MoU) on The FinTech bridge between the UK and Singapore. The Bridge seeks to support continued growth, investment and technological innovation in this sector, and builds on active interest from fintech players in the areas of payment, regtech and wealth management.

Both countries also welcomed opportunities the industry can deliver in relation to financial inclusion, increased innovation and improved outcomes for consumers.

Builds on existing ties

The FinTech Bridge MoU is based on:

• a cooperation agreement between Financial Conduct Authority and Monetary Authority of Singapore (MAS) signed on 11 May 2016
• MOU June 2021 between Her Majesty’s Treasury and MAS on regulatory cooperation on financial services
• the free trade agreement signed by the United Kingdom and the Republic of Singapore in December 2020
• the agreement on digital economy signed by both countries in February 2022

Investment in the UK fintech sector has reached $9.1 billion – up 24 per cent year-on-year from H1 2021. Meanwhile, Singapore was ranked as Southeast Asia’s leading jurisdiction for fintech investment, and sixth globally.

A welcome announcement

Andrew Griffith MP, Economic Secretary to the Treasury said: “The UK and Singapore are among the world’s leading jurisdictions for fintech investment. Today’s announcement will only accelerate growth and innovation in our respective sectors. The agreement we have announced today is crucial. I would like to thank the Monetary Authority of Singapore for their constructive engagement throughout the discussions.”

While Janine Hirtmanaging director i Innovative financecommented: “A UK-Singapore MoU will provide a strengthened framework for important regulatory and policy discussions between the two countries, enable innovation across financial services, and ensure businesses based in both the UK and Singapore have ongoing support for their ambitions to growth to be realised.

“We look forward to supporting future economic dialogues and business to business activity between these markets. We are also excited to work with the key organizations engaged to promote the opportunities this bridge has to offer and to welcome fintech companies to IFGS and UK FinTech Week next year.”

Decision makers from both countries will meet regularly with the fintech sector to work to remove regulatory trade barriers. Two UK-Singapore industry-led business roundtables on sustainable finance and fintech took place on 24 November 2022.