Singapore and India have signed a fintech cooperation agreement to facilitate discussions on emerging fintech issues and participate in joint innovation projects.
The agreement, signed between the Monetary Authority of Singapore (MAS) and the International Financial Services Centres Authority (IFSCA), will enable Singapore startups that have already joined MAS regulatory sandbox to be referred to IFSCA’s sandbox to test their use cases in India. Likewise, Indian startups will be able to test their services in the city-state.
“The cross-border testing of use cases between Singapore and India will pave the way for operationalizing a broader collaboration framework for fintech use cases involving multiple jurisdictions,” said Sopnendu Mohanty, chief fintech officer of MAS, in a statement.
According to the agreement, MAS and IFSCA will share non-supervisory related information and developments on innovation in financial products and services, facilitate discussions on emerging fintech issues and participate in joint innovation projects.
IFSCA chief technology officer Joseph Joshy said he hopes this partnership will usher in a “fintech bridge to serve as a launch pad for Indian fintech to Singapore and landing pad for Singapore fintech to India, leveraging the regulatory sandboxes”.
In 2021, investments in Singapore’s fintech sector grew 47% year on year to hit $3.94 billion in 2021. Similarly, fintech funding in India recorded a 3x jump in 2021. According to a report jointly published by Chiratae Ventures and EY said, the Indian fintech market is estimated to reach assets under management (AUM) of $1 trillion by 2030, up 10-fold from its 2021 size of roughly $100 billion.