Singapore, Switzerland Join Forces to Promote Data Connectivity for Financial Servicesby Fintech News Singapore May 25, 2022
The Swiss State Secretariat for International Finance (SIF) and the Monetary Authority of Singapore (MAS) jointly issued a statement of intent to promote data connectivity for financial services.
SIF and MAS said that they recognise the importance of a sound regulatory and policy framework especially one that is conducive for the cross-border transmission, storage, processing, access to and protection of data in the financial sector.
The expanding use of data and information technology for the provision of financial services offers a range of benefits, including greater consumer choice, enhanced risk management capabilities, and increased efficiency.
However, these developments can also pose new and complex risks for markets and challenges for policymakers and regulators.
Cross border data connectivity in financial services may support economic growth and the development of innovative financial services, and may benefit risk management and compliance programmes.
Conversely, data localisation requirements may increase cybersecurity risks and other operational risks, hinder risk management and compliance, and inhibit financial regulatory and supervisory access to data.
SIF and MAS intend to enable data flows, including personal information, within financial groups or with business partners, across borders by electronic means provided this activity is for the conduct of the business within the scope of their license, authorisation, or registration.
They will also support the free choice of location for the storage and processing of data as long as financial regulators or supervisors have appropriate access to data necessary to fulfill their regulatory or supervisory mandate.
If such access cannot be granted to financial regulators or supervisors, alternative means will be explored to remediate such lack of access before financial institutions are required to use or locate computing facilities locally.
Lastly, the regulators aim to protect confidentiality of customers’ data and privacy.
SIF and MAS added that they intend to identify areas of collaboration and opportunities in international bodies for financial markets to further pursue these goals.
The joint statement said,
“SIF and MAS are committed to working together and with other countries and authorities to promote an environment in financial services that fosters growth and development of the global economy.
Both organisations aim to promote consumer-focused, innovative, integrated and efficient global financial markets; while safeguarding the stability and integrity of the global financial system, upholding confidentiality of customers’ data, and protecting personal information and privacy globally.”