S Korea, Singapore to boost fintech co-operation (Amended)

Singapore

FINTECH (financial technology) took the spotlight on Day 1 of Echelon Asia Summit 2016, a two-day technology and business event that kicked off in Singapore on Wednesday.

The Fintech Center of Korea and the Singapore FinTech Consortium signed a memorandum of understanding (MOU) at the event to strengthen cooperation in fintech services between South Korea and Singapore.

The agreement entails the exchange of information between both countries on their respective fintech ecosystems and regulatory regimes, as well as connecting fintech startups with local business partners.

A spokesman from the Fintech Center of Korea said: "Under this, the two institutions will provide proper aid to fintech companies from the partner country."

Gerben Visser, co-founder and managing partner of the Singapore FinTech Consortium, told The Business Times that South Korea made an "important" partner. He said: "It's very encouraging to see cohesion between the various players in the South Korean fintech ecosystem, comprising the government, regulators, entrepreneurs and the private sector."

Mr Visser added that the partnership between the two economic powerhouses will boost fintech and entrepreneurial activity in the region. "Singapore is the lighthouse (of Asia). It already has a strong ecosystem. But this MOU will bring global startups in, to help with venture creation and the futureproofing of its financial centre."

The Consortium, founded in 2015, is a private association that aims to grow the fintech ecosystem in Singapore and Southeast Asia. The Fintech Center of Korea, formed last year, has signed agreements with France, the UK and Australia to expand its fintech networks globally.

On Wednesday, Standard Chartered Korea launched its Mobility Platform in Singapore. Representatives from the bank (at the Fintech Korea Hall at Echelon Asia Summit 2016) introduced the platform, via which bank customers can request a visit from a bank employee to provide financial services such as deposits, loans or card issuance using a tablet.

Park Jong-bok, chief executive of Standard Chartered Korea, said that the Mobility Platform (which the bank launched in 2012) marks a new form of retail banking in response to the changing financial market.

He was quoted as saying in a press conference last year that the existence of physical bank branches has "nearly come to an end", and having fewer branches will be a strength rather than a weakness in the future.

At the Echelon event, the Fintech Center of Korea also held a Fintech Demo Day to allow 11 South Korean fintech startups to take the stage and market their products to investors and financial services executives.

These startups included BSMIT (a robo-adviser portfolio operation service for listed stocks or exchange-traded funds); Power Voice (a smart home service that recognises speakers based on voice patterns); and Paycock (a payment solution for membership stores using inter-operating smartphone cameras and character recognition technology).

During the event, South Korea's Financial Services Commission executive director Kim Hak-kyun met with Monetary Authority of Singapore (MAS) chief fintech officer Sopnendu Mohanty, where they agreed on mutual cooperation for the growth of fintech services in the two countries.

Leo Shimada, adviser to the Singapore FinTech Consortium and chief of Singapore-based crowdfunding site Crowdo, said that the bridge between the two financial giants in East and Southeast Asia marks a big win for both their fintech communities.

He said: "To Singapore fintech startups, it offers market access to a technologically savvy and financially advanced population, while to Korean fintech startups, Singapore acts as a gateway to a dynamic region."

The Echelon Asia Summit 2016, in its fifth year, is hosting over 90 speakers, 200 exhibiting enterprises, and 4,000 attendees on Wednesday and Thursday.

Amendment: The original article stated that the Fintech Center of Korea was established this year and has signed agreements with France, Germany and Africa. The center was established last year (2015) and it has signed agreements with France, the UK and Australia. The article has been amended to reflect this.