This summer, from June to August, I had the privilege of interning with the financial team at the Asian Development Bank (ADB) Pacific Liaison and Coordination Office (PLCO). My research focus was on addressing derisking in the Pacific. 'Derisking' refers to the trend where financial institutions choose to avoid operational and compliance risks by terminating business relationships with entire regions or groups of customers, rather than managing these risks. This practice not only affects money remittance services but also leads to the withdrawal of correspondent banking relationships in ADB's Pacific developing member countries, potentially severing the region's financial connectivity with the rest of the world.
On one hand, this internship provided me with a deeper understanding of international anti-money laundering/counter-terrorism financing (AML/CTF) regulations, especially those relevant to the Pacific region. I became aware of the unique challenges faced by this region, characterized by its small market size and inadequate compliance infrastructure. To address this issue effectively, a comprehensive solution is required to bridge genuine capability gaps. This solution entails enhancing regulatory framework, intervening in new technologies or government interventions, and involving a wider array of stakeholders. I am deeply appreciative of my supervisor, Shiu, for providing me with numerous valuable opportunities. These opportunities allowed me to actively participate in consultations with diverse stakeholders and even contribute to fundraising efforts. I had the chance to engage in communication and coordination with a wide range of international banks, local financial institutions, and regulatory bodies. This experience highlighted the Asian Development Bank's impressive ability to drive meaningful change.
On the other hand, my interest in the field of financial inclusion has grown, particularly in the context of harnessing financial technology (fintech). Building upon my previous academic and professional background in fintech, I now have a more nuanced understanding of how technology can improve essential financial services, benefiting a larger population in a more efficient and cost-effective manner. Thus, I have established a long-term aspiration: to bridge the global digital divide, unite the world inclusively, and fulfill our responsibility to future generations sustainably.
Lastly, as the first LKYSPP student to undertake a summer internship outside the headquarters, I was honored to have the opportunity to intern at the Sydney office. Although Sydney was entirely unfamiliar to me before, the warmth and support of each colleague made this journey exceptionally rewarding. Working alongside inspiring and passionate experts from around the world was a meaningful and exciting learning experience. Every brainstorming session and exchange of ideas with my supervisor and colleagues, every thoughtful answer to my questions, and the exposure to cutting-edge lectures on central bank digital currencies and international technology and policy trends will be the most cherished memories for me. It also opened doors for my exploration of multilateral international organizations and financial inclusivity. In summary, I am deeply grateful to the Lee Kuan Yew School of Public Policy and ADB for providing me with such an incredible internship opportunity, and I extend my heartfelt thanks to my supervisor Shiu and all the helpful colleagues.