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MAS and MOF launch eGuarantee@Gov to digitalise banker’s guarantees and insurance bonds

Chloe Lim
·2-min read

The Monetary Authority of Singapore (MAS) and the Ministry of Finance (MOF) has launched eGuarantee@Gov on Nov 2.

The Monetary Authority of Singapore (MAS) and the Ministry of Finance (MOF) has launched eGuarantee@Gov on Nov 2.

eGuarantee@Gov is a digital process for businesses and individuals to provide a banker’s guarantee or insurance bond to government agencies within a day. The process was jointly developed with the Association of Banks in Singapore (ABS) and in consultation with the General Insurance Association of Singapore (GIA).

Photo: Singapore FinTech Festival 2022

“We are always looking at ways to use digital technologies to streamline and further improve business processes,” says Deputy Prime Minister Lawrence Wong in an opening address at the Singapore FinTech Festival 2022 (SFF) on Nov 2, in the context of how Singapore holds a level of “divine discontent” for the state to consistently strive to push its limits when it comes to innovation on the frontiers of business and technology.

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Wong mentioned that in the past, companies had to manually apply for these guarantees and bonds, with physical paper documents involved between all parties. At best, it took a few days to complete the process. But with this digitalisation effort, Wong boasts that this can all be completed within a day. “We hope that this collaboration will lead to a significant reduction in time and effort needed to process guarantees and ultimately benefit individual and business users,” Wong adds.

With eGuarantee@Gov, businesses and individuals will no longer need to apply for a paper guarantee from a financial institution, or wait to collect it when it is ready and deliver the guarantee to the government agency, to discharge their contractual or licensing obligations.

Instead, businesses and individuals can apply for an eGuarantee from over 20 participating financial institutions through their websites or email for direct submission to 17 government agencies. More financial institutions and agencies are scheduled to come onboard eGuarantee@Gov by the end of 2023.

The eGuarantees are transmitted through the Singapore Customs’ Networked Trade Platform (NTP).

eGuarantee@Gov’s process also employs standardised texts which eliminate the need for each guarantee to undergo legal vetting.

“Banks and our customers will benefit from more streamlined processes and greater efficiency thanks to eGuarantee@Gov,” says Wee Ee Cheong, chairman of ABS and CEO of UOB. “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.”

“This is a win for both financial institutions and their customers,” says Marcus Lim, assistant managing director of Banking and Insurance at MAS. “eGuarantee@Gov facilitates greater efficiency in processing guarantees and reduces the operational risks associated with manual paper-based workflows.”

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