Promoting Financial Inclusion through Fintech
November 19, 2021
Recent economic development of Singapore has opened up new job opportunities in various sectors. As a result, there is a significant inflows of foreign workers to fill the vacancies. With the increasing number of migrant workers, the volume of outbound remittance is rising concurrently as they are sending part of their earnings to home countries. Furthermore, the World Bank has identified the remittance flows as the major source of external financing for low- and middle-income countries. Find out more on how the landscape of cross-border payments evolves. These upward trends have encouraged companies to start adopting blue ocean strategy and explore the untapped market space that offers vast potential.
To drive financial inclusion and improve access to related financial services among migrant workers, financial service providers are teaming up to serve the unmet financial needs of this niche market. They strive to create customer value through allowing the workers to transfer money back to their country of origins in a fast and cost-efficient way. According to Singapore Business Review, in early 2021, a Fintech startup SOCASH has announced its partnership with a mobile e-wallet service provider, Singtel Dash to support seamless cross-border money transfers for migrant workers. It allows foreign workers who are getting their pay in cash to top up their Dash e-wallet at SOCASH retail touchpoints and make a foreign money transfer from their Dash account.
To Get Involved
Referring to a news article published on The Business Times, payment using digital wallets will soon overtake the credit card transactions in Singapore by 2024. This shows the growing popularity of digital wallets as the preferred payment method in the nation. Explore our insights on the trend of cashless payment. With the vision of transforming Singapore into an electronic payment society, the Monetary Authority of Singapore (MAS) has introduced a more forward looking framework to regulate payment service providers in 2019. Under the Payment Services Act (PSA), companies conducting regulated activities such as e-wallet account opening, providing cross-border money transfer service have to apply for a Payment Service Provider licence. As a summary, companies that aim to expand the outreach of financial services with various new, innovative digital solutions will have to ensure the regulatory compliance while carrying out businesses.
How we can help
- Offer Professional Advice on the Specific Licence Requirements
- Assist with the PSP Licence Application
- Review the Submission Documents (Form 1 and the supporting documents)
- Liaise with MAS on Licence Application-related matters
- Provide On-going Compliance Support Post-Licence Approval
Reference Materials
Choy, N. (2021). ‘Digital wallets to overtake credit cards by 2024 amid e-commerce boom: report’, The Business Times, 3 March. Available at: https://www.businesstimes.com.sg/banking-finance/digital-wallets-to-overtake-credit-cards-by-2024-amid-e-commerce-boom-report
Ratha, D. (2019). ‘Remittances on track to become the largest source of external financing in developing countries’, The World Bank Group, 8 April. Available at: https://blogs.worldbank.org/peoplemove/remittances-track-become-largest-source-external-financing-developing-countries
Singapore Business Review (2021). ‘SOCASH partners up with Singtel Dash to improve payments, remittance services’. Available at: https://sbr.com.sg/financial-services/news/socash-partners-singtel-dash-improve-payments-remittance-services
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