Opening Remarks by Ravi Menon at the launch of the Global Finance & Technology Network

GFTN

By GFTN

30 October 2024

Ravi Menon[1]

Chairman, Global Finance & Technology Network


Opening Remarks at GFTN’s Inaugural Media Conference

Swissôtel The Stamford, Singapore

30 October 2024

In 2015, the Monetary Authority of Singapore (MAS) took a bold step. It began to actively promote the use of technology in finance – then loosely called FinTech. MAS launched a series of pioneering initiatives:

  • a S$225 million fund to promote FinTech;
  • regulatory sandboxes to promote experimentation;
  • an electronic payments ecosystem;
  • digital platforms for financial planning, tokenised financial assets, and so on.

Singapore is today a leading global FinTech hub.

One of MAS’ most impactful initiatives was to host in 2016 a first-of-its-kind global conference called the Singapore FinTech Festival, or SFF.

  • The inaugural SFF exceeded all expectations by attracting some 13,000 participants from across the world, from senior policymakers and financial industry leaders to FinTech entrepreneurs, technology experts, and leading academics.
  • But this was no regular conference. It was also a platform for collaboration in FinTech, matching ideas with financing, and giving birth to new start-ups and partnerships.
  • Anshu Jain, the late Co-CEO of Deutsche Bank, described the inaugural SFF as the “Woodstock moment for FinTech”, as he walked through the Festival’s mega halls at the Singapore Expo, teeming with FinTech entrepreneurs from around the world demonstrating their technology solutions to transform financial services.

The SFF is today the largest FinTech event in the world, drawing 65,000 participants annually from 150 countries.

 

In 2021, MAS took another bold step. It set up a not-for-profit entity, Elevandi, to organise and globalise the SFF, working closely with but independent of the MAS.

  • Working with public authorities in partner countries, Elevandi has expanded its global footprint to support FinTech events in cities across three continents:
    - Japan FinTech Festival in Tokyo, Japan;
    - Point Zero Forum in Zurich, Switzerland;
    - Inclusive FinTech Forum in Kigali, Rwanda; and
    - 3i Africa Summit in Accra, Ghana.

Today, Elevandi is financially self-sustaining and has more invitations than it can handle, to co-host SFF-type events in other cities.

 

Earlier today, MAS took yet another bold step. It set up the Global Finance & Technology Network, to strengthen Singapore's position as a global FinTech hub and enhance global connectivity for impactful innovation in financial services internationally. GFTN will replace and build upon Elevandi.

GFTN’s mission is to harness technology and foster innovation through global partnerships to promote more efficient, resilient, and inclusive financial ecosystems.

  • We will drive greater synergies within the global finance and technology communities for innovations in financial services that create positive economic value and social impact.
  • In doing so, we will further strengthen Singapore’s global connectivity and role as an international FinTech hub. 

The establishment of GFTN could not have been more timely.

We are witnessing rapid advances in several dimensions of technology that will have deep impact on economies and societies.

  • First, we are entering an era of growing digital connectivity across borders, starting with electronic payments but moving on universal trusted credentials and data exchanges. Getting the digital infrastructure right will be critical.
  • Second, after years of experimentation, the tokenisation of financial assets has reached a tipping point. Billions of dollars of financial assets are today on-chain but the promise of a tokenised financial system has not materialised yet.
  • Third, artificial intelligence is beginning to make significant inroads into financial services. We are seeing both AI-powered innovation and potential AI-driven risks. If quantum technologies take off, the coupling of AI and quantum computing will unlock new opportunities as well as unprecedented security challenges.
  • Fourth, addressing climate change will become a growing preoccupation with the financial sector, with growing interest in climate tech solutions for both carbon mitigation and climate resilience.

These rapid changes demand closer and more meaningful engagement between countries, between the public and private sectors, between finance and technology. Policy, regulation, and industry practices must be coherent so that we can harness the benefits of these technologies while managing their downsides.

 

A trend that often gets overlooked is the rise of the Global South as a bastion of innovation.

  • Innovation is emerging not only in Silicon Valley and London but also in cities like Nairobi, Jakarta, and São Paulo.
    - By 2030, the Asia Pacific region is expected to become the largest FinTech market in the world.[2]
    - The FinTech sectors in Africa and Latin America are projected to grow at about 30% per annum by 2030.[3]
  • However, critical gaps remain.
    - Sub-Saharan Africa, Latin America, and the Middle East and North Africa, which together account for 30% of the world's population, received only 10% of global FinTech venture capital funding from 2020 to 2023.[4]

If we do not address these gaps— in talent, infrastructure, capital, and policy— we risk leaving behind entire regions and segments of the world’s population.

  • Through its networks and partnerships, GFTN will aim to unlock sustainable and inclusive pathways that serve communities facing critical gaps, especially in the Global South.

GFTN will build on the success of Elevandi to offer a broader suite of services and capabilities. GFTN will have four strategic businesses:

  • GFTN Forums – a global conference convenor, dedicated to finance and technology.
  • GFTN Advisory - a knowledge centre, offering practitioner-led advisory services and research on innovation policies and ecosystems.
  • GFTN Platforms – a digital platform service provider for businesses, especially small and medium enterprises.
  • GFTN Capital – an investment fund for technology start-ups that have the potential for sustained growth and positive social impact.

Let me elaborate on each of these business lines.

 

GFTN Forums will develop a globally distributed, partnership-driven network of FinTech forums.

  • We will build on Elevandi’s five existing forums, including the flagship SFF, to expand into new geographies and integrate them into a single network.
  • We will facilitate greater cross-sectoral and cross-border exchange of insights and collaboration for more robust financial systems and more inclusive financial services.

GFTN Advisory will provide practitioner-led consultancy and capacity building services on innovation and FinTech related issues.

  • We will provide authorities in developing countries advisory services to develop digital infrastructures, formulate policies to harness technology in financial services, and create robust innovation ecosystems.
  • We will offer private entities market insights to support programmes which drive positive social impact through innovation.

GFTN Platforms will support a suite of digital platform services to help small enterprises and FinTech start-ups innovate and thrive.

  • We will offer platform services to help enhance market access, provide analytics and information services, and support sustainability reporting.

GFTN Capital will help catalyse equity investments into promising early-stage and growth-stage enterprises with the potential for positive social or environmental impact.

  • We will have a global mandate, investing in FinTech and ClimateTech enterprises which have the potential for positive impact, such as strengthening financial inclusion or supporting environmental sustainability.
  • We will provide these portfolio companies with patient capital and, more importantly, access to a global network of potential partners, buyers, and suppliers.

GFTN cannot do all this on its own.

  • We will collaborate with like-minded partners and seek to maximise synergies across stakeholders in the ecosystem.
  • We will partner with multilateral bodies, public authorities, financial institutions, academics, and strategy consultancies to deliver our expanded suite of services.
  • We will continue to work closely with MAS to enhance the connectivity of the Singapore FinTech ecosystem with both regional and global markets. 

GFTN will be governed by a Board of Directors with diverse backgrounds.

  • I am grateful to be working with two highly experienced and respected individuals as Deputy Chairmen:
  • Mr Leong Sing Chiong, Deputy Managing Director, MAS; and
  • Mr Neil Parekh, Nominated Member of Parliament, Singapore, and Non-Executive Chairman (and till recently Partner and Head of Asia & Australia) at Tikehau Capital.

I am equally grateful that Mr Sopnendu Mohanty will join GFTN as Group CEO in February next year.

  • Sopnendu has been instrumental in building the FinTech ecosystem in Singapore and is arguably the most well-known FinTech personality internationally.
  • Together with the highly capable and energetic team from Elevandi moving over to GFTN, Sopnendu will push new frontiers in FinTech collaboration.

 

The Board of Directors will be guided by an International Advisory Board, which will comprise distinguished globally recognised leaders with a demonstrated commitment to the public interest. The composition of the Board of Directors and the International Advisory Board will be announced next week at the Singapore FinTech Festival.

 

As I have said at almost every Singapore FinTech Festival in the last eight years: everything we do in FinTech must have a larger purpose.

  • It is not just about technology.
  • It is about creating economic opportunity, strengthening resilience, improving people’s lives, and securing a sustainable planet for the future.

These have been the guiding principles underpinning Singapore’s FinTech journey. They will guide GFTN too, as we expand our global connections, forge partnerships, and harness innovation for the greater good of communities in more parts of the world.

 


[1] Mr Menon is also Singapore’s Ambassador for Climate Action and Senior Adviser to the National Climate Change Secretariat at the Prime Minister’s Office. He was previously Managing Director of the Monetary Authority of Singapore, from 2011 to 2023.

[2] BCG. (2023). Fintech Projected to Become a $1.5 Trillion Industry by 2030.

[3] BCG. (2023). Fintech Projected to Become a $1.5 Trillion Industry by 2030.

[4] WEF. (2024). Unlocking global fintech potential: bridging the venture capital funding divide.


 

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