The Monetary Authority of Singapore, keen to keep the island nation’s status as an attractive place for fintech startups, is to set up a Data Analytics Group (DAG) headed up by data scientist Dr David Roi Hardoon, who will also serve as the authority’s Chief Data Officer.
While the DAG will have a remit to “harness the power of data analytics to unlock insights, enhance the supervision of financial institutions, make regulatory compliance more efficient for financial institutions, and improve work efficiency across the organisation”, the most exciting element for startups could be the exploration of a shared Know Your Customer (KYC) system.
In a blog by Matthew Hughes titled “Please don’t launch a fintech startup“, widely shared in the past day among the global fintech community, the journalist identifies KYC as a huge compliance challenge in the sector.
“In regulated markets it becomes even more critical since onboarding requires a KYC process. Without a proper, quick, and easy solution, customer acquisition in regulated markets can become a critical bottleneck.”
As regulators progressively come to understand fintech needs, we could yet see the birth of ‘jurisdiction shopping’ for startups in the sector. In which case, things are looking up for Singapore.