The Singapore FinTech Association (SFA) and the Fintech Association of Japan (FAJ) signed a Memorandum of Understanding (MOU) to foster stronger relationships and greater fintech cooperation between the two countries. The partnership will see the associations working together to collaborate on joint projects and initiatives to support fintech innovation and development. It will be used to raise the profile of the Japanese fintech industry and promote Singapore as a destination for Japanese business in wider Asia. Members will benefit from shared knowledge and exchange of expertise in the aim to nurture global business opportunities. The signing was celebrated with a Friendship evening and Sake tasting in Singapore on March 13, 2018 at the Money 20/20 conference.
The alliance echoes government strategies to enhance fintech in their respective countries. The Financial Services Agency (FSA) of Japan has updated legislation to enable established banks and non-bank fintech companies to work together. Equally, the Monetary Association of Singapore (MAS) issued an Industry Transformation Map (ITM) in 2017, outlining fintech innovation at the heart of growth strategy.
This agreement hopes to capitalise on the respective opportunities and strengths in either market. In 2017, the KPMG Pulse of FinTech report showed US$61.5m investment in the sector in Singapore, with 97% of the population already within the financial system.
The SFA has welcomed partner organisations on to its platform, ranging from local academic institutions and associations, to international FinTech hubs in Abu Dhabi, Denmark, Hong Kong, Luxembourg, New Zealand and Switzerland. The organisation has also signed memorandums of understanding with institutions of higher learning in Singapore to support job creation at home and overseas.