Singapore's push to be a financial technology (fintech) hub is laudable ("S'pore's push to be fintech hub"; Nov 22, "New grant scheme to support fintech trials"; Nov 18, and "Singapore kicks off world's largest fintech event"; ST Online, Nov 14).
However, any creation or implementation of technological ideas and products must fit in with a few principles.
First, new technology must be able to simplify or standardise job processes and lessen the workload of workers.
Second, the application of new technology must be able to raise productivity and the quality of products and human life.
Third, it must consistently improve the accuracy and efficiency of work.
Fintech and regulatory technology must coexist and supplement each other. It is vital to explore the needs of and groom the research and development of the regulatory technology industry.
This will not only complement the sustainable growth of fintech, but also enhance Singapore's position as the world's leading fintech hub.
Hence, to ensure that regulatory technology functions efficiently and achieves its targeted objectives and standards, two key elements must be in place.
First, a robust technical regulatory framework must be established. Second, we need to identify, affirm and institute a thorough listing of verification parameters into the system.
The robust system of regulatory technology must be able to track and verify irregular frequency and unusually large numbers of financial and stock trading transactions.
Simultaneously, it should aim to clamp down on any form of illegal money-laundering activities, monitor and prevent hidden manipulation of purchases and sales of securities, and stop misleading launches of bonds and securities.
All these rigid but necessary soft verification tools and processes in the regulatory technology system are aimed at protecting investors, the authorities and other stakeholders.
Teo Kueh Liang