SFA Launches Self-assessment Framework, Toolkit for FinTechs

Source: Regulation Asia Manesh Samtani, Regulation Asia 2020-06-11

The framework and toolkit allow FinTechs to benchmark themselves against minimum standards on outsourcing, technology risk, and cyber hygiene, helping to fast-track onboarding with FIs.

The SFA (Singapore FinTech Association) has launched a digital self-assessment framework and toolkit to help FinTechs fast-track the onboarding process to partner with financial institutions.

Eight out of ten FinTechs in Singapore provide technology solutions to enhance financial institutions’ services and product offerings, the SFA said. “As such, there is a need for these FinTechs to adopt an efficient approach to demonstrate satisfactory compliance levels to provide assurance to the financial institutions while maintaining a baseline level of governance, rigour and consistency over their services.”

The ‘FinTech Service Provider Compliance Readiness Framework’ includes a baseline set of requirements from the OSPAR (Outsourced Service Providers Audit Report) guidelines issued by the ABS (Association of Banks in Singapore), as well as the Technology Risk Management Consultation and Cyber Hygiene Notice issued by MAS (Monetary Authority of Singapore).

“FinTech firms are expected to adhere to these requirements as a starting point for servicing financial institution,” the SFA said. The objective of the new framework is to promote a “sustainable outsourcing relationship” between FinTechs and financial institutions.

Additionally, the self-assessment toolkit allows FinTechs to identify the maturity of their control environment when it comes to technology risk, by comparison against the minimum compliance requirements. “This will also enhance the financial institutions’ confidence level when partnering with FinTechs,” the SFA said.

Further, PwC has organised a series of workshops for FinTechs, to help them address the compliance gaps identified in the self-assessment.

The initiative is part of a SGD 125 million MAS support package announced in April for the financial and FinTech sectors – to help them deal with the immediate challenges brought about by the Covid-19 pandemic.

“This Digital Self-Assessment Framework will enable FinTechs to be more effective when collaborating with financial institutions, and giving financial institutions more confidence in the partnership as they accelerate their digitalisation efforts,” said SFA President Chia Hock Lai.

Currently, APIX (API Exchange) serves as a platform for FinTechs and financial institutions to explore, experiment, and adopt digital solutions. “By leveraging APIX and the digital self-assessment framework on APIX, the FinTech community can further accelerate the digital transformation of the financial sector with confidence and trust,” said MAS Chief FinTech Officer Sopnendu Mohanty.

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outsourcing

SFA Launches Self-assessment Framework, Toolkit for FinTechs

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