A new cooperation agreement framework between Danish and Singaporean regulators aims to assist fintech companies with expanding abroad. The Danish Financial Supervisory Authority (Danish FSA) and the Monetary Authority of Singapore (MAS) inked a Memorandum of Understanding (MoU), at the sidelines of the Money 20/20 Europe conference in Copenhagen.
The framework aims to help FinTech companies in Singapore and Denmark to expand into each other’s markets and also to provide facilitated introductions when a fintech company operating in one country wants a better understanding of the rules in the other country.
In addition, the agreement will enable both regulators to refer fintech companies to their counterparts and to share information about financial services innovations. It will also reduce barriers to entry in new jurisdictions and further encourage innovation in Singapore and Denmark.
MAS and FSA have also committed to exploring joint innovation projects together, and to share information on emerging market trends and their impact on regulation.
Sopnendu Mohanty, Chief FinTech Officer, MAS, said: “Singapore and Denmark are important gateways to their surrounding regions. This cooperation agreement signifies the commitment of MAS and Danish FSA to promoting innovation in financial services and growing the FinTech landscape. We look forward to closer interactions between our respective FinTech ecosystems and more opportunities for our businesses to grow, expand and serve customers in each other’s markets.”
Brian Mikkelsen, Danish Minister of Industry, Business and Financial Affairs added: “I am very happy that Denmark and Singapore have been able to join forces in this agreement. I am sure that this will help many FinTech companies and create an even better growth environment for these companies in both Singapore and Denmark.”
Thomas Brenøe, Deputy Director General, Danish FSA, said: “The FSA is committed to encourage innovation in the financial sector. We are currently establishing a FinTech Lab to support the development of fintechs and provide assistance for these to set up business in Denmark. Financial innovation is not confined to national borders, and we are therefore delighted to enter into this agreement with MAS. This agreement will ensure cooperation between the Danish FSA and MAS and will foster opportunity for businesses in Denmark and Singapore to grow.”
“Denmark offers a unique combination of a centrally located global hub of world-class innovation, a vibrant start-up ecosystem and most importantly an easy place to do business in. The heart and soul of this lies in a Fintech Lab, where Copenhagen Fintech has set up a unique co-working space - a home to banks and start-ups alike, where focus is on knowledge sharing and network building.The recently concluded fintech week saw over 1000 people visit this lab and take part in a series of carefully planned events” commented Shanker Subramaniam, Country Manager – India and Singapore at Invest in Denmark, a customized one-stop service for foreign companies looking to set up a business in Denmark.
Singapore has been very active in the area of FinTech-related developments as well. According to a new report from KPMG, fintech investment in the Asian city-state more than tripled to $61.5 million in the second quarter of the year. MAS has also entered agreements with other countries including the Americas, the U.S. and Abu Dhabi to further promote and strengthen fintech ties.
The regulator is organising the 2nd edition of the Singapore Fintech Festival in November 2017. Singapore will also host the inaugural Money 20/20 Asia conference in March next year.