This week on Finovate Global, we take a look at recent fintech news from Singapore.
The Monetary Authority of Singapore has announced plans to invest US$74.36 million (S$100 million) to fund quantum computing and AI projects. The funding is part of the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0), designed to support banks and other financial institutions as they innovate and develop capabilities in both quantum computing and artificial intelligence (AI) technologies.
This month’s investment follows a $110 million injection into FSTI in August 2023. FSTI 3.0 was launched in 2022 as part of efforts to strengthen and future-proof Singapore’s position as a leading international fintech hub. MAS initially committed S$150 million to the scheme over three years, and this month’s investment is in addition to that amount. The scheme will run until March 2026, but may be extended.
Given the recent emphasis on the importance of AI in financial services, it is particularly noteworthy that MAS has expressed interest in quantum computing and its application to banks and financial services companies. MAS will provide eligible financial institutions with up to 50% funding assistance for the construction of quantum computing technology centers. Companies developing quantum computing-based cybersecurity solutions can receive co-funding assistance of up to 30%.
On AI, MAS is also supporting the development of an AI Innovation Centre. Again, one of the focus areas is cybersecurity, which MAS has identified as the use case for the first pilot project. While MAS noted that AI tools have “become more widely available” and that “financial institutions are gradually adopting AI,” it also noted that there is variation in the degree of “AI readiness and adoption” among financial institutions in Singapore. The AI component of FSTI 3.0 is primarily designed to improve this situation.
Partior, a blockchain-based financial infrastructure company, has raised over $60 million in Series B funding. The round was led by Peak XV Partners (formerly Sequoia Capital India & SEA). Valor Capital Group and Jump Trading Group also participated as new investors, joining existing shareholders JP Morgan, Standard Chartered and Temasek.
Founded in 2021, the Singapore-based company offers banks a unified ledger-based interbank rail for real-time clearing and settlement. Partior’s 24/7 blockchain network interfaces with real-time local currency settlement and RTGS systems worldwide to facilitate direct and indirect payment flows with market participants. The shared ledger further supports remittances with real-time settlement finality, providing instant liquidity and transparency compared to the sequential processing typical of traditional payment systems.
“Paltior is breaking down silos and rewriting the rules of cross-border settlement and clearing,” said Humphrey Barenbrader, CEO of Paltior. “We believe there is an incredibly bright future for blockchain-based frictionless cross-border trade, and having some of the world’s leading banks and investors backing our vision is further validation of this.”
The new funding will power new features such as intraday FX swaps, cross-currency repos, programmable corporate liquidity management and just-in-time multi-bank settlement. The funding will also enable Partior to integrate a range of new currencies beyond the currently supported USD, EUR and SGD.
“As one of Paltior’s founding shareholders, we have always believed in the transformative potential of the company’s technology to shape global financial market infrastructure. This latest investment round is a testament to the incredible progress Paltior has made towards this endeavor,” said Pradhuma Agrawal, managing director of investments (blockchain) at Temasek.
DBS and Deloitte have joined forces to launch the Sustainability Accelerator tool. This new tool will help SMEs in Singapore accurately assess their sustainability maturity and identify and address gaps in their efforts.
The two companies hope to offer the new solution to 1,000 SMEs in Singapore over the next 12 months, with plans to roll out the tool to other markets over the next year.
“The Sustainability Accelerator tool is unique in that it can provide meaningful, actionable guidance to SMEs,” said Brian Ho, Sustainability & Climate Leader, Deloitte Southeast Asia. “It leverages Deloitte’s sustainability transformation expertise to not only identify strengths and gaps, but also provide actionable recommendations to improve sustainability performance.”
The key benefits of this new service are three-fold: industry-specific analysis that provides insights into industry-specific sustainability challenges; customized strategic recommendations based on a company’s progress towards improving sustainability (Emerging, Mature, Leading); and local adaptability that enables the solution to be used by SMEs across Asia.
SMEs who use the tool can also get a customized sustainability readiness report that analyzes their company’s sustainability maturity and provides insights on how to address the specific sustainability challenges they face.
“The Sustainability Accelerator tool is the latest in our ongoing efforts to future-proof SMEs through practical and holistic solutions,” said Koh Kah Siong, DBS group head of corporate and SME banking.
The launch of the Sustainability Accelerator tool follows the spring launch of DBS’ ESG Ready program, which helps SMEs efficiently transition to low-carbon business models. Headquartered in Singapore and operating in 19 markets, DBS offers comprehensive banking services to consumers, SMEs and corporates. The company has been named “Safest Bank in Asia” by Global Finance for 15 consecutive years from 2009 to 2023.
Here we look at fintech innovation from around the world.
Central and Eastern Europe
International embedded finance platform Liberis announced it is entering the German market in partnership with Nexi. Lithuanian identity verification company iDenfy unveiled an automated utility bill verification tool. Germany-based private markets platform Bunch secured $15.5 million in Series A funding.
Middle East and North Africa
Visa announced a significant partnership with First Abu Dhabi Bank (FAB) to expand the Visa B2B Connect network regionally. UAE-based fintech startup Mamo closed a $3.4 million funding round to fuel the expansion of its product line for small and medium-sized businesses. The Bank of Israel selected a team of 14 private and public sector experts to explore use cases for the digital shekel.
Central and South Asia
HSBC India has partnered with Open Financial Technologies to streamline payments operations for its corporate clients in India. Indian digital payments company Paytm has agreed to partner with Axis Bank. India-based payments and API banking company Cashfree Payments has received a cross-border payments aggregator license from the RBI.
Latin America and the Caribbean
Brazil’s central bank said it was suspending plans to add recurring payments to its Pix platform. Argentine fintech Tapi secures $22 million ahead of its expansion into Mexico. BBVA opens international cybersecurity center in Mexico.
Asia Pacific
Melbourne, Australia-based AirWallex is the first major payments company to receive an Australian Financial Services License (AFSL) from the Australian Securities and Investments Commission (ASIC). Bank Indonesia and Bank of Korea signed a memorandum of understanding to facilitate cross-border payments between the two countries. The Monetary Authority of Singapore (MAS) aims to become a “global fintech hub” and has invested US$74.36 million (S$100 million) in quantum computing and AI projects.
Sub-Saharan Africa
South African fintech company Peach Payments has acquired custom software development company Operativa. Kenya’s Diamond Trust Bank has partnered with Network International. Nigerian wealth management platform Risevest has announced plans to acquire Kenyan fintech company Hisa.
Photo: Elina Sasonova
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