The Singapore Fintech Association has launched a digital self-assessment framework to expedite partnerships between fintech firms and financial institutions and promote a sustainable outsourcing relationship.
SFA will undertake a phased approach to enhancing the compliance maturity of fintech firms by establishing the Fintech Service Provider (FSP) Compliance Readiness Framework, it announced in a statement on Wednesday, saying this would help digitalization across the industry.
The self-assessment toolkit featured in this framework will allow fintech firms to identify the maturity of their control environment and compare that against the minimum compliance requirements so they can operate safely together with financial institutions, the announcement said.
According to the industry body, some 80 percent of fintech firms provide technology solutions to financial institutions, which prompts the need for «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.»
«Early Indicator»
The framework, advised by auditing and consultancy firm PwC, is part of the support package announced by the Monetary Authority of Singapore (MAS) in April to sustain and strengthen capabilities in the financial services and fintech sectors amid the current economic slump.
«Over the last few years, technology risk management is a key area that financial institutions look at when working with fintech. However, many existing frameworks for technology evaluation are suited towards more mature service providers. This new self-assessment framework will provide an early indicator of where the fintechs' control environment stand when it comes to technology risk,» Wong Wanyi, fintech leader, PwC Singapore said.
