Fintech
Finovate Global Singapore: AI, Quantum Computing and Sustainable SMEs
This week’s edition of Global Finovate highlights the latest fintech news from Singapore.
Monetary Authority of Singapore announced investment plans $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 to innovate and develop capabilities in both quantum computing and artificial intelligence (AI) technologies.
This month’s investment follows the infusion of $110 million into FSTI in August 2023. FSTI 3.0 was launched in 2022 as part of an effort to strengthen and future-proof Singapore’s position as a major international fintech hub. MAS had initially pledged S$150 million to the program over a three-year period, and this month’s investment is an addition to that amount. The program runs until March 2026, but could be extended.
Given the recent emphasis on artificial intelligence in financial services, MAS’s focus on quantum computing and its applications for banks and financial services companies is particularly noteworthy. MAS will support eligible financial institutions with up to 50% financing for the construction of quantum computing technology centers. Companies developing cybersecurity solutions based on quantum computing can receive up to 30% co-financing.
On the AI side, MAS is also supporting the development of AI innovation centers. Again, a major area of emphasis is cybersecurity, which MAS has identified as a use case for the first pilot. Noting that AI tools have become “more widely accessible” and that “financial institutions have progressively adopted AI,” MAS has also observed that the degree of “AI readiness and adoption” among Singapore financial institutions is uneven. The AI component of FSTI 3.0 is largely designed to address this.
Blockchain-based financial infrastructure companies Divider has has raised more than $60 million in Series B fundingThe round was led by Peak XV Partners (formerly known as Sequoia Capital India & SEA). Valor Capital Group and Jump Trading Group also participated as new investors along with existing shareholders JP Morgan, Standard Chartered and Temasek.
Founded in 2021, the Singapore-based company offers banks unified ledger-based interbank binaries for real-time clearing and settlement. Partior’s 24/7 blockchain network works with real-time local currency and RTGS payment systems globally and facilitates direct and indirect settlement flows with market participants. The shared ledger further supports transfers for real-time settlement purposes, providing instant liquidity and transparency compared to the sequential processing typical of legacy payment systems.
“Partior is breaking down silos and rewriting the rules for cross-border clearing and settlement,” said Partior CEO Humphrey Valenbreder. “We see a very bright future for frictionless, blockchain-based cross-border transactions. Having some of the world’s best banks and investors supporting our vision further validates this.”
The new capital will fuel new capabilities, including intraday FX swaps, cross-currency repos, Programmable Enterprise Liquidity Management, and Just-in-Time multi-bank payments. The funding will also enable Partior to integrate a range of new currencies beyond the USD, EUR, and SGD currently supported.
“As one of Partior’s founding shareholders, we have always believed in the transformative potential of its technology to shape the global financial market infrastructure. This latest investment round is a testament to the incredible progress Partior has made towards this endeavor,” said Pradyumma Agrawal, Managing Director for Investment (Blockchain) at Temasek.
DBS and Deloitte have they joined together to launch the Sustainability Accelerator tool. The new offering will help Singapore SMEs accurately assess their sustainability maturity levels and identify and address gaps in their efforts.
The two companies hope to provide the new solution to 1,000 SMEs in Singapore over the next 12 months and plan to introduce the tool to additional markets starting next year.
“The Sustainability Accelerator Tool is unique in its ability to provide meaningful and practical guidance to SMEs,” said Brian Ho, Deloitte Southeast Asia Sustainability & Climate Leader. “Leveraging Deloitte’s expertise in sustainability transformation, it not only identifies strengths and gaps, but also provides actionable recommendations to improve sustainability performance.”
The three key benefits of the new offering are industry-specific analysis, which provides insights into unique sustainability challenges; customized strategic recommendations based on the degree of progress (emerging, maturing, or leading) the company has made on its journey to greater sustainability; and regional adaptability to ensure the solution can be used by SMBs across Asia.
SMEs using this tool also receive a customized Sustainability Readiness Report that provides them with an analysis of their company’s sustainability maturity and insights into how to address any specific sustainability challenges.
“The Sustainability Accelerator Tool is the latest in our ongoing efforts to future-proof SMEs through practical and holistic solutions,” said Koh Kar Siong, Head of Corporate and SME Banking at DBS Group.
The introduction of the Sustainability Accelerator Tool follows the spring launch of DBS’s ESG Ready program to help SMEs efficiently transition to low-carbon business models. Headquartered in Singapore and present in 19 markets, DBS offers a full range of banking services for 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 is our analysis of fintech innovation around the world.
Central and Eastern Europe
- Liberis Embedded International Financial Platform announced his entry on the German market in partnership with Nexi.
- Lithuanian identity verification company iDenfy revealed its automatic bill checker.
- Private market platform group based in Germany insured $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.
- Mamo, a fintech startup based in the United Arab Emirates, completed a $3.4 million funding round to support the expansion of the company’s product line for SMBs.
- The Bank of Israel has choice 14 teams of professionals from the public and private sectors to study use cases for the digital shekel.
Central and South Asia
- HSBC Bank India made a team with Open Financial Technologies to simplify payment transactions for Indian corporate customers.
- Indian digital payments company Paytm accepted a collaboration with Axis Bank.
- Indian Banking Payments Company and API Cashfree Payments insured a cross-border payment aggregator license issued by the RBI.
Latin America and the Caribbean
- The Brazilian Central Bank announced a break in their plan to add recurring payments to the Pix platform.
- Fintech Argentina Tapi insured $22 million for its expansion into Mexico.
- BBVA opened an international cybersecurity center in Mexico.
Asia-Pacific
- Airwallex based in Melbourne, Australia insured an Australian Financial Services Licence (AFSL) issued by the Australian Securities and Investment Commission (ASIC), the first major payments company to obtain one.
- Bank Indonesia and Bank of Korea inked a memorandum of understanding to encourage cross-border payments between the two countries.
- In a bid to become a “global fintech hub,” the Monetary Authority of Singapore (MAS) He ran over US$74.36 million (S$100 million) in quantum computing and artificial intelligence projects.
Sub-Saharan Africa
- South African fintech Peach Payments acquired Custom software development company Operativa.
- Diamond Trust Bank of Kenya has forged a partnership with Network International.
- Nigerian Wealth Management Platform Risevest plans announced to acquire Kenyan fintech Hisa.
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