A service that will allow 40,000 Singaporeans to directly receive payments from government without needing to cash cheques has been launched to make it easier and quicker for citizens to access funds.
GovCash has been rolled out through a three-way project involving the government’s Central Provident Fund (CPF), the government’s technology agency GovTech and the Oversea-Chinese Banking Corporation (OCBC) to help Singaporeans receive government payments more easily.
According to OpenGovAsia, 40,000 Singaporeans cash up to half a million cheques from government every year, mostly for the Workfare income supplement scheme that tops up the salary of low-income workers. The cheques are used by those unable to use direct bank credit, but Singaporeans will now be able to receive payments through the GovCash system, allowing them to withdraw payments through ATM machines. They will also have access to in-person assistance from ‘Digital Ambassadors’ at OCBC’s Singaporean branches.
“OCBC is pleased to support the CPF Board in its mission to continually improve the service experience for Singaporeans through initiatives like GovCash, which takes us one step closer to the vision of serving citizens and businesses better through technology,” said Melvyn Low, head of global transaction banking at OCBC.
GovCash pilot pays off
A pilot for GovCash in December 2021 revealed generally positive feedback from users, according to the CPF, which is Singapore’s compulsory savings and pensions scheme (and part of the Ministry of Manpower).
“The whole process of receiving payments with GovCash was very easy and convenient. I was able to do it by myself and withdraw the payment immediately at an OCBC ATM. I am happy that I no longer have to queue at the bank counter to encash my cheques”, said Madam Ruziyantee Mohd Sani, a GovCash user, in a statement published by the CPF board.
GovCash will also give its users the option to transfer via PayNow, a global e-payments service that requires only a payee’s mobile or personal identification number to move funds. To verify its users’ identity, GovCash will incorporate Singpass, a facial recognition technology launched as part of the country’s National Digital Identity (NDI) scheme to give Singaporeans access to multiple government services via a face-scanning system on their device. To protect against fraud, GovCash includes detection features that block photos or videos from being taken while it verifies the user.
Singapore has continued to roll out new digital services under its Smart Nation initiative, which aims to harness technology to improve people’s lives. The Monetary Authority of Singapore (MAS) has been promoting e-payments as a key pillar of this agenda, and has set out its visions of a location where ‘innovation is pervasive and fintech is used widely’.
This article was first published by our sister title Global Government Forum
FURTHER READING
‘Switzerland and Singapore to co-organise fintech forum in Zurich’ – our article (18 February 2022) on Elevandi, a non-profit organisation set up by the Monetary Authority of Singapore (MAS), and Swiss State Secretariat for International Finance (SIF) teaming up to co-organise the ‘Point Zero Forum’ from 21-23 June 2022 in Zurich
‘Singapore authority publishes “methodologies” for responsible AI’ – our article (8 February 2022) on assessment methodologies to steer and encourage responsible use of artificial intelligence by financial institutions such as commercial banks being published by MAS
‘Singapore preps CBDC tech despite ‘no strong case’ for digital currency’ – our article (9 November 2021) based on a speech on ‘The Future of Money, Finance and the Internet’ by MAS managing director Ravi Menon during the Singapore FinTech Festival
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