MORE FROM KrASIA

Solidarity Fund offers financial help for ASEAN fintech companies hit by COVID-19

In all, USD 35.1 million will be administered for short- and long-time support schemes.

Photo:Shutterstock.com

Hong Kong-based financial services group AMTD had partnered with the ASEAN Financial Innovation Network (AFIN) to roll out a SGD 50 million (USD 35.1 million) support fund for fintech firms during the COVID-19 pandemic.

“We are committed to offering our timely support at this special moment, but more importantly to providing long-term and sustainable value-adds to the fintech community in Singapore and beyond,” said AMTD Group chairman Calvin Choi in a statement.

The solidarity fund will disburse financial assistance to companies registered in the cross-border API Exchange Platform (APIX). Eligible fintech firms will receive support through two schemes—a grant that will be administered by the Singapore FinTech Association, and long-term support in the form of equity, convertible notes, and venture debt type of investments.

In addition to financial relief, the companies are also granted access to AMTD’s SpiderNet ecosystem, which can lead to collaboration across ASEAN countries, Hong Kong, and mainland China.

“At times of crisis, the private and public sector must work closely together and support the fintech community. Fintech companies are drivers of innovation and new opportunities, preserving their ecosystem is key to post-pandemic economic recovery,” said chief fintech officer at the Monetary Authority of Singapore, Sopnendu Mohanty. The organization, along with the International Finance Corporation and ASEAN Bankers Association, is one of AFIN’s creators.

With reported case numbers exceeding two million globally, the coronavirus pandemic is taking a huge toll on the global economy. The fintech sector has been affected in various ways. Though some saw a surge in demand for their services, many might have to brace for a harsh future.