Finance
MOF and MAS Launch Process to Digitalise Banker’s Guarantees and Insurance Bonds
Global Banking & Finance Review®
Company
Singapore, 2 November 2022 …. The Ministry of Finance (MOF) and the Monetary Authority of Singapore (MAS) today launched eGuarantee@Gov, a simple and secure digital process for
Singapore, 2 November 2022 …. The Ministry of Finance (MOF) and the Monetary Authority of Singapore (MAS) today launched eGuarantee@Gov, a simple and secure digital process for businesses and individuals to provide a banker’s guarantee or insurance bond (collectively, “guarantee”) to government agencies within a day. It was jointly developed with the Association of Banks in Singapore (ABS) and in consultation with the General Insurance Association of Singapore (GIA).
With eGuarantee@Gov, businesses and individuals will no longer need to apply for a paper guarantee from a financial institution (FI), collect it when it is ready, and deliver the guarantee to the government agency, to discharge their contractual or licensing obligations. Businesses and individuals can instead apply for an eGuarantee from over 20 participating FIs through their websites or email for direct submission to 17 government agencies (refer to Annex). More FIs and agencies are scheduled to come onboard eGuarantee@Gov by end 2023.
FIs and government agencies will also benefit from this more streamlined and simpler workflow. eGuarantee@Gov employs standardised texts which eliminate the need for each guarantee to undergo legal vetting. The eGuarantees are securely transmitted through the Singapore Customs’ Networked Trade Platform (NTP).
Mr Han Neng Hsiu, Deputy Secretary (Development), MOF, said, “eGuarantee@Gov is part of our digitalisation efforts to transform service delivery and reduce transaction costs. Our partnership with the financial industry has enabled us to create value for businesses and individuals.”
Mr Marcus Lim, Assistant Managing Director (Banking and Insurance), MAS, said, “This is a win for both financial institutions and their customers. eGuarantee@Gov facilitates greater efficiency in processing guarantees and reduces the operational risks associated with manual paper-based workflows.”
Mr Wee Ee Cheong, Chairman, ABS, and CEO of UOB, said, “Banks and our customers will benefit from more streamlined processes and greater efficiency thanks to eGuarantee@Gov. More importantly, we hope that the initiative will lead to greater acceptance of digital guarantees from all parties as we move towards a greener and more sustainable economy. ABS is proud to contribute to the successful launch of eGuarantee@Gov together with the Ministry of Finance, the Monetary Authority of Singapore, and other government agencies.”
For more information on the initiative, please visit www.eguarantee.gov.sg.
[1] Members of the ABS eBG Taskforce include DBS Bank Ltd, The Hongkong and Shanghai Banking Corporation Limited, Oversea-Chinese Banking Corporation Limited, United Overseas Bank Limited, Maybank Singapore Limited and Standard Chartered Bank (Singapore) Limited.
A banker’s guarantee is a promise made by a bank to cover a loss if a borrower defaults on a loan or obligation. It assures the beneficiary that the bank will pay a specified amount if the borrower fails to fulfill their contractual obligations.
Digitalisation in banking refers to the integration of digital technologies into banking services and processes. It enhances efficiency, improves customer experience, and reduces operational costs by automating traditional banking functions.
The Monetary Authority of Singapore (MAS) is Singapore's central bank and financial regulatory authority. It oversees the country's monetary policy, regulates financial institutions, and promotes a stable and efficient financial system.
Explore more articles in the Finance category
