Sopendu Mohanty, chief fintech officer, MAS

The Monetary Authority of Singapore (MAS) is open to “fine-tuning” policy norms in order to support its innovative project with MetLife Asia. The insurance product is currently under testing at the MAS sandbox.

“It’s still on the platform. Once it graduates, the policy will be fine-tuned to support that,” Sopnendu Mohanty, chief fintech officer, MAS told IBS Intelligence on the sidelines of an event held in Mumbai today.

Vitana is Singapore’s first dedicated insurance product that enables real-time settlement of insurance claims for women affected with gestational diabetes. It securely connects to customers’ electronic medical records via their mobile device to issue a policy within minutes and triggers an automatic payout upon diagnosis, without the need to make a claim.

Vitana was built with partners like SwissRe, Cognizant and Vault Dragon. It was developed within the MAS regulatory sandbox and was hailed as one of the key innovations to come out of the sandbox initiative.

Mohanty said that such experiments in the sandbox environment gives the regulators an empirical base to fine tune a policy and create a level-playing field for fintech in the industry. “Banks don’t want to go for production straight away, they want to experiment. They can come to the industry sandbox, use that data, put it out on the cloud, test it out and perhaps in that process, multiple banks participate and it becomes the opportunity to grow,” he said.

He added that MAS has taken several measures to support innovation in fintech. “We focus on talent and we focus on how to build risk capital. We just created a $12 billion capital around the whole space for startups to access that money,” Mohanty said.

MAS has also been in the process of signing international agreements to nurture the growth of fintech across countries. “There are 32 partnerships we have done globally, covering Africa, Latin America, Asia, Europe and Middle East. It includes public projects, cross-border projects and policy exchange,” Mohanty said, adding that the Singapore regulatory authority is also working out a strategic partnership with India.

Read: Singapore and Bahrain agree on common framework to support fintech

by Parnika Sokhi