The Monetary Authority of Singapore (MAS) has established the Global Finance & Technology Network (GFTN), a non-profit organisation to enhance international financial connectivity and build a resilient and globally connected fintech ecosystem.

The GFTN’s launch was highlighted at the plenary session of the Singapore FinTech Festival (SFF) 2024, led by Ravi Menon, former MAS managing director and now GFTN chairman. Menon described GFTN as the “next phase” of Singapore’s fintech journey, building on MAS’s advancements for fintech through regulatory sandboxes, cross-border payments, digital assets, and artificial intelligence (AI) adoption. “GFTN will drive greater synergies within the global finance and technology communities,” he stated, “enabling innovations in financial services that create positive economic value and social impact.”

Ensuring privacy, explainability and accountability of AI decisions

A key focus at the session was AI, with Menon highlighting small language models (SLMs) and quantum computing as transformative trends. While acknowledging the potential of these technologies, Menon stressed the need to establish governance frameworks around “privacy of data, explainability of results, accountability for decisions, and acceptability of outcomes.”

Menon also emphasised minimising the “black box” effect of AI models to make results more transparent and understandable. “The massive amount of data, the complexity of the algorithms, and the dynamic nature of AI systems make their results difficult to interpret convincingly,” stated Menon. He advocated for keeping humans in the AI loop to ensure accountability for AI decisions, acknowledging the limitations of AI models trained on incomplete or biased data.

GFTN's strategic focus 

GFTN plans to work with MAS to support dialogues on industry advancements in areas like payments, asset tokenisation, AI and quantum computing. Globally, the network will prioritise cross-border collaborations through forums, providing advisory services and establishing an investment fund to support startups with high growth potential and positive social impact.

Expanding the existing fintech forums

The network will expand five fintech forums – the Japan FinTech Festival in Tokyo, the Point Zero Forum in Zurich, Inclusive FinTech Forum in Kigali, the 3i Africa Summit in Ghana, and the SFF, into a “distributed, partnership-driven network”. These forums will build momentum throughout the year, culminating at the SFF. Recognising the increasing relevance of climate issues, GFTN plans to hold its first climate tech forum in 2025 to support innovations in climate resilience and carbon mitigation technologies.

Supporting financial inclusion in emerging markets

GFTN will offer consultancy and capacity-building services to develop digital infrastructure and policy development, particularly in emerging markets. Menon highlighted recent advisory partnerships with Bank of Namibia and the National Government of Georgia, emphasising that fintech innovation has now expanded to emerging centres such as Jakarta, Nairobi, and São Paulo.

Platform services and investments for financial institutions

GFTN will also provide platform services to support financial institutions and fintechs through integration of three platforms from the MAS, namely Apix, Proxtera, and Gprnt.

Apix, founded in 2018, is a digital platform enabling collaboration and innovation between financial institutions and fintech firms. Currently, the Apix network connects over 110 financial institutions and 2000 fintech firms across 90 countries. Proxtera, launched in 2018, facilitates cross-border trading and financing for small and medium-sized enterprises (SMEs). Proxtera has recently extended its global trade support for SMEs into Cambodia through the Financial Transparency Corridor.

Gprnt, pronounced as Greenprint, was launched in 2023. Gprnt provides environmental, social, and governance (ESG) data and services for sustainability initiatives. Through these platforms, GFTN will support financial institutions and fintechs in adopting innovative solutions aligned with ESG principles.

GFTN’s final focus area includes equity funding for early and growth-stage fintech and climate tech startups. “We are already seeing promising investment ideas emanating from our existing GFTN ecosystem, which we aim to translate into high-quality deals with our fund investors,” said Menon. Startups in the GFTN network will gain access to global forums, investors, and strategic partners, creating a robust support system for growth and scalability.

The next stage of Singapore’s fintech strategy

The GFTN launch represents an evolution in Singapore’s fintech strategy, marked by an increased focus on international collaboration and sustainable growth. “GFTN is here to serve the greater purposes, to harness the power of technology for a more efficient and resilient financial system, more inclusive financial services, expanded economic opportunities for broader segments of societies, and a sustainable planet,” said Menon. Through sessions at SFF 2024 and other global forums, GFTN aims to inspire critical conversations among financial institutions, startups, and regulators to drive forward an interconnected global financial ecosystem.