In this technologically changing world, Singapore is initiating a new way for tax collection from the tax bearers of the nation, Digitalization. It is expected that QR (Quick Response) code will be sent by the tax authorities and folks will scan that and pay the bills. A thank you message will be sent for paying the taxes and contributing to the nation-building. Singapore is aiming at defining specifications for the common QR code by the end of 2017, which will be used for the further processes. A task force is set up by the central bank’s payments council this week to create the mobile-readable quick response code.
All three local banks namely, United Overseas Bank Ltd (UOB), Oversea-Chinese Banking Corp (OCBC), and DBS Group Holdings Ltd, are contributing to this group. Furthermore, FOMO Pay, a technology startup that helps merchants accept Baidu and WeChat Wallet payments from overseas customers.
Digitalization, A Threat to Singapore Banks
Digitalization and technological change, could act as a disaster for the banks in Singapore. This could be referred to Chinese economy, where mobile payments of over US$5.5 trillion per year is transacted, which is driven by Alibaba Group Holding Ltd, Baidu Inc, and Tencent Holdings Ltd, and not by any bank. This technology has been implemented by financially less developed countries such as India and Thailand. Today, Singapore with the population of 5.6 million is initiating the digitalized methods, which could endanger the financial system of the country. The easy money is at the risk along with losing customers to rival offerings.