Singapore launches new process for digitizing bank guarantees and insurance bonds
Singapore, Nov 3 (IANS): The Ministry of Finance of Singapore (MOF) and the Monetary Authority of Singapore (MAS) have jointly launched a digital process for businesses and individuals to provide a bank guarantee or insurance bond to government agencies within one day.
Singapore’s Deputy Prime Minister and Finance Minister, Lawrence Wong, told the Singapore Fintech Festival 2022, held here from Wednesday to Friday, that MOF and MAS have been working with the financial industry to digitize these collateral and insurance bonds.
“In the past, the process of applying for such guarantees and sureties took a few days. But with digitization efforts, it can all be done online within a day,” he said.
According to MOF and MAS, with the new process, companies and individuals will no longer need to request paper collateral from a financial institution, collect it when it is ready, and deliver the collateral to the government agency, to fulfill their contractual obligations or licensing obligations, Xinhua News Agency reported.
Instead, they can request an eGuarantee from over 20 participating financial institutions through their websites or via email for direct submission to 17 government agencies. Other financial institutions and government agencies are expected to adopt the new digital process by the end of 2023.