MAS Partners UNCDF to Develop Integrated Financial Ecosystems for Least Developed Countries
Singapore, 14 November 2022… The Monetary Authority of Singapore (MAS) and the United Nations Capital Development Fund (UNCDF) have signed a Memorandum of Understanding on 11 November 2022 to jointly develop integrated and digital financial ecosystems for micro, small and medium enterprises (MSMEs) from least developed countries (LDCs).
2 The partnership will help MSMEs enhance their digitalisation capabilities and facilitate greater access to finance through open digital infrastructures. As a start, MAS and UNCDF will collaborate on developing the Pacific Islands Integrated Financial Ecosystem (PIIFE), to enable MSMEs and businesses in the Pacific Islands and Singapore to be more digitally connected.
3 The PIIFE will offer an open digital infrastructure for participating MSMEs in three areas:
- Financial empowerment of MSMEs through broad-based financial literacy and financial skillsets content. The successful completion of such online courses will generate verifiable digital credentials for participating MSMEs.
- Financial Trust Framework
An example is the Financial Trust Corridor (FTC) initiative to engender greater trust, trade and recognition between both countries’ businesses and financial institutions. for MSMEs to better access secured and unsecured financing and financial services. This aims to enable financial institutions to use verifiable digital credentials and alternative data sets to assess credit-worthiness of MSMEs, such as the track record of successful payments to suppliers and tax payments to relevant authorities. - Expanded business opportunities through digital trade discovery platforms. These offer a scalable network of business-to-business ecosystems that can enable MSMEs to grow domestically, across Asia and other growth regions.
The PIIFE is a collaborative effort across public entities, financial institutions, FinTechs, tech solution providers and open digital infrastructure players
4 Mr Sopnendu Mohanty, Chief FinTech Officer, MAS, said, “MAS is excited to partner UNCDF to develop Integrated Financial Ecosystems to help MSMEs from LDCs connect digitally and gain better financial access. The IFEs will provide digital infrastructures to equip MSMEs with the necessary skillsets to grow their businesses and gain access to financing through digital verifiable credentials and inclusive credit assessment models.”
5 Ms Neha Mehta, Regional Lead for UNCDF in the Pacific, said, “The MSME and informal sector generate maximum employment opportunities in the Pacific Island states. The partnership with the MAS will fuel the growth story of MSMEs and SMEs by accelerating digitalisation, and accessing new data sources from traditional financial data and non-traditional data sources. It will strengthen the evaluation process of SMEs and enable growth of the SME lending business. It has great potential in improving overall productivity and boosting the economies of the Pacific region consequently improving the overall standards of living of the Pacific Islanders.”
6 Mr Mourad Wahba, UNCDF Officer in Charge, said, “This partnership signifies the coming together of two like-minded and specialist organisations pursuing inclusive and sustainable development through digital finance in the vast and vibrant Pacific Island region. As a market catalyser and convener, UNCDF is pleased to partner with an important stakeholder like MAS. Additionally, we look forward to drawing on its experience and expertise to build a digital ecosystem tailored and responsive to the unique needs of Pacific Island people and businesses.”
***
Related News
-
SpeechesPublished Date: 14 November 2023
"Silver Jubilee of the IMF-Singapore Training Institute" - Opening Remarks by Mr Ravi Menon, Managing Director, Monetary Authority of Singapore, at 25th Anniversary Celebration of IMF-Singapore Regional Training Institute on 14 November 2023
Opening Remarks by Mr Ravi Menon, Managing Director of MAS, at the 25th Anniversary Celebration of IMF-Singapore Regional Training Institute
-
Media ReleasesPublished Date: 14 November 2023
The International Finance Corporation, the Monetary Authority of Singapore and the World Economic Forum Partner to Advance Digital Inclusion in Emerging and Developing Markets
The partnership will focus on finding ways to better mobilise financing to make digital services more affordable and accessible for underserved individuals and communities, and MSMEs, with the support of financial institutions and FinTech companies.
-
SpeechesPublished Date: 30 August 2023
"Fostering Digital, Financial, and Green Inclusion for MSMEs" - Remarks by Mr Ravi Menon, Managing Director, Monetary Authority of Singapore, at Interactive Dialogue at the Executive Board of UNDP, UNFPA and UNOPS (Second regular session 2023) on 30 August 2023
Mr Ravi Menon, Managing Director, MAS, spoke on MAS' efforts to build three foundational digital infrastructures, as well as MAS’ collaboration with UNDP to maximise opportunities for MSMEs.