Monetary Authority of Singapore (MAS) and Temasek Trust have collaborated to accelerate growth of FinTech and impact ecosystem.
Temasek Trust said in a statement on Tuesday that it has signed a letter of intent (LOI) with the MAS to explore a common FinTech and impact investment roadmap, and an interoperable technology framework to facilitate cross-platform collaborations between open technology-based platforms.
According to the statement, MAS and Temasek Trust will share their regional networks and explore collaborations on the broad design and framework of common platforms to attract global capital to regional high-potential and high-impact opportunities, and increase investments to accelerate the growth of the financial sector, FinTech companies, and impact projects in Singapore and beyond.
“There will be a growing nexus of FinTech innovation with impact investment in the coming years as the world begins to accelerate capital towards meaningful and sustainable outcomes,
“This signing of the LOI with Temasek Trust will help to invite impact seeking investors to new fintech and impact opportunities in our dynamic financial center,” said Sopnendu Mohanty, Chief Fintech Officer, MAS.
“Over time, this will catalyze a sea change in innovation and investment from profit-seeking capital to patient and productive capital that will help with the financial and digital transformation of much needed communities in Asia and beyond,” he added.
Meanwhile, Temasek Trust Chief Executive Officer Desmond Kuek said that Temasek Trust and MAS have a shared vision to catalyze capital towards high-impact opportunities through multi-sector partnerships.
“To this end, our collaboration on Co-Axis will enable the cross-sharing of resources, networks, and technologies. It will unlock capital and potentially blend liquidity across the spectrum of capital, accelerating funding for innovative solutions that will make a difference for this and future generations,
“Together, we strive to create a more seamless experience for investors and philanthropists, bringing together key actors to build a vibrant ecosystem focused on driving positive environmental and social impact,” he added.
According to the statement, an upcoming collaboration between such platforms is between the FinTech Lending and Investment Exchange (FLEX), which will be introduced at Singapore FinTech Festival 2023 with the support of MAS, and Co-Axis in 2024.
FLEX, a pioneering open digital marketplace platform, is set to redefine the FinTech landscape and solidify Singapore’s position as a preeminent hub for financial technology innovation.
Certified FinTech talents, including Chartered Fintech Professionals (CFtP), can list themselves within FLEX’s talent capture hub, making them discoverable to FinTech firms and financial institutions.
Meanwhile, Co-Axis, by Temasek Trust and like-minded partners, is a catalytic capital marketplace which will connect impact innovators and funders with the same commitment to driving impact.
It will bring together a community of impact actors to share best practices and scale impact.
Prospective partners include financial institutions, investors, family offices, and corporates, to startups, charities, and impact project owners.
Through Co-Axis, accredited philanthropists and high net worth individuals can provide funding to impact projects and companies through a range of financial instruments, from donations to recoverable grants and embedded instruments.
In the first phase, any returns will be recycled back to impact opportunities in the future, thus amplifying the impact of the initial contribution.
Through its MAS partnership, Temasek Trust is exploring the application of digital tools, frameworks, and initiatives MAS is developing to verify impact data on Co-Axis.
FLEX and Co-Axis will have common processes such as customer onboarding and components including project matching solutions, which could result in cost efficiencies and a seamless user experience.
Both platforms will also explore a common data approach, to be standardized on the international UNDP, MAS, and partners’ UTCs approach to credentialize investors and FinTechs.
This would allow seamless data sharing between FLEX and Co-Axis and encourage the adoption of standardized impact reporting frameworks.
There could also be cross-platform marketing promotion and front-of-the-house lead generation sharing where both platforms receive interest in the other platform’s specific specialities so that funders gain exposure to a broader pipeline of impact and FinTech opportunities.
Both Co-Axis and FLEX are being developed, with their first phase to be launched in the first half of 2024.
Temasek Trust, established by Temasek Holdings, is a steward of philanthropic assets, advocate of sustainability and catalyst of positive impact.
It provides governance and financial oversight of endowments for an ecosystem of entities with the shared purpose of building better for every generation by protecting the planet, uplifting communities, connecting people, and advancing capabilities.
In forging new pathways for philanthropy and impact investing with like-minded partners, Temasek Trust aims to promote catalytic philanthropy as a force for good.