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SINGAPORE: For those with multiple bank accounts, logging into numerous platforms for updates and compiling financial spreadsheets may now be a thing of the past.
This is possible with the launch of the Singapore Financial Data Exchange (SGFinDex) on Monday (December 7), a digital infrastructure that is based on the national SingPass digital identity system.
By giving their explicit consent, users can now choose to group all their financial data (account balances, credit cards, loans and investments) from various banks and government agencies, and view it on a platform of their choice.
SGFinDex is a joint initiative of the Monetary Authority of Singapore (MAS) and the Smart Nation and Digital Government Group (SNDGG) in collaboration with the financial sector.
Making the announcement at this year’s Singapore FinTech Festival and Singapore Technology and Innovation Week, Vice Premier Heng Swee Keat said: “This is the world’s first public digital infrastructure that allows a person to log in using your national digital identity and give your consent to obtain your financial information from different financial institutions and government agencies ”.
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For now, there are seven participating banks: Citibank, POSB and DBS Bank, HSBC, Maybank, OCBC, Standard Chartered Bank and UOB.
Users will also be able to retrieve data from three government agencies: the Central Provident Fund (CPF), the Housing Board, and the Internal Revenue Authority of Singapore (IRAS), through MyInfo, the government’s single data platform.
Information on insurance policies and share holdings in the Central Depot will be included in the next phase of SGFinDex, although a timeline for this was not given in the joint press release issued by MAS, SNDGG and the Association of Banks in Singapore on Monday.
HOW DOES IT WORK
Users can choose to view their consolidated financial information on any of the seven banks’ financial planning websites or mobile apps.
Those who are not customers of the seven participating banks can use the government’s new digital financial planning service MyMoneySense.
According to a list of frequently asked questions (FAQ) about SGFinDex, MyInfo information will “always be retrieved” when users request to retrieve their bank details from any of the participating banks.
“This is to give you a consolidated overview of your personal financial health,” the list adds.
If users do not want to share their MyInfo data with their bank, they can use the MyMoneySense website instead, according to the FAQ.
Both options will require users to log in through SingPass as a form of identity authentication.
Once they have logged in, users will be directed to the SGFinDex page where they can select the banks to which they wish to give their consent to disclose their data. Once selected, they will be directed to the respective bank portals for a second round of authentication.
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Once successful, banks will show up on the SGFinDex page as a connected financial institution.
Users will then return to their preferred platform, be it a bank’s website or app, or the government’s MyMoneySense, where they can see the following:
Of the banks that have been given consent to disclose data:
– Checking and savings accounts, fixed deposits and joint accounts (Account balance at the end of the month of the last four months)
– Credit cards (statement of the last four months)
– Secured and unsecured loans (previous month’s statement balance)
– Unit trusts (previous month’s account balance)
From government agencies:
– Latest available balances on all CPF accounts (Singaporeans and RP only)
– Last outstanding HDB loan balance or monthly loan fee
– Last annual taxable income from the IRAS Appraisal Notice
https://www.youtube.com/watch?v=jX5h21Yc_6A
A user’s consent will last for one year from the moment it was first provided and can be revoked at any time.
SECURITY SAFEGUARDS
SGFinDex is designed to ensure data protection and privacy of personal financial information, the joint press release said.
Safeguards include how data can only be retrieved with the “explicit consent of the person” whose identity must be verified through SingPass.
SGFinDex only transmits personal financial data and does not store any of it. It cannot be used for transactions.
All transmitted data is encrypted and can only be read by financial planning applications or websites that a user has chosen to authorize to receive the data, according to the joint press release.
The FAQ stated that in the event of a data breach, the circumstances that led to the incident will decide who is responsible.
For example, a participating bank will be liable if it is determined to have caused the data breach.
Under the Personal Data Protection Act, an organization that breaches any data protection provision may be subject to a fine of up to S $ 1 million.
If the data breach had occurred in the MyMoneySense platform of the Ministry of Manpower or in the SGFinDex infrastructure, the Government will be responsible and will carry out the necessary incident containment, forensic investigations and recovery actions in accordance with established protocols.
Under the Public Sector (Governance) Act, public officials who recklessly or intentionally disclose data without authorization or misuse it for profit may be found guilty and subject to a fine of S $ 5,000 or a prison sentence of up to 2 years, or both.
What it means to you
Convenience aside, SGFinDex will help Singaporeans with financial planning, authorities said.
“Today, our personal financial information is fragmented across multiple entities and we often make financial decisions, such as making an investment or buying a home, without a holistic view of our financial situation,” said MAS chief Ravi Menon. .
SGFinDex leverages digital technology to improve the financial well-being of Singaporeans, he added.
“(This) allows the individual to consolidate their financial information to get a comprehensive view of their portfolio and use digital tools like MyMoneySense to make better financial decisions.”
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Several participating banks have already turned to SGFinDex to offer improved financial planning services to their clients, such as applications covering money management, investments, protection needs and retirement planning, according to the joint press release.
For example, Maybank has launched MView, a new service that presents its clients with a comprehensive view of their financial status, including their life insurance policies with its Etiqa insurance division.
OCBC also has a new digital financial dashboard called OCBC Financial OneView.
In addition to allowing clients to see all their financial data at a glance, the AI-powered dashboard will offer personalized tools and advice to help users manage their finances, plan their retirement, grow and protect their wealth.
In OBCB’s recent Financial Wellness Index, more than a third of those surveyed said they didn’t know the best way to increase their wealth.
“SGFinDex will open up more opportunities that will allow clients to access a simpler and more comprehensive financial guide towards their goals,” said Singapore’s head of consumer financial services Sunny Quek.
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Singapore’s largest lender DBS said the launch of SGFinDex is “timely” as the COVID-19 pandemic and its sudden revenue disruption have “revealed a great need for financial planning” among many Singaporeans.
The bank’s five million customers can now access SGFinDex through its NAV Planner digital advisory tool “to consolidate their financial data and receive personalized information and practical recommendations on how to grow their money,” said their Singapore country chief. , Shee Tse Koon.
