Singapore – The Monetary Authority of Singapore (MAS) has announced that it is committing S$150m to drive technological innovation in the financial sector. The financial commitment was made under the renewed Financial Sector Technology and Innovation Scheme (FSTI 3.0).
FSTI 3.0 seeks to accelerate and strengthen innovation by supporting projects that involve the use of cutting-edge technologies or with a regional nexus, while doubling down on MAS’ commitment to promote a vibrant technology ecosystem for the financial sector.
Moreover, FSTI 3.0 will continue to support advanced capability development and adoption in key areas such as artificial intelligence and data analytics (AIDA), and Regulation Technology (RegTech).
Specifically, MAS will focus on promoting AIDA adoption in smaller financial firms and supporting the needs of less digitally mature firms looking to acquire regtech solutions. Across tracks, applicants will also be required to devote resources to talent development, in order to strengthen the Singaporean fintech talent pool.
FSTI 3.0 will comprise several tracks which include enhanced centre of excellence; innovation acceleration; and environmental, social and governance (ESG) fintech.
The scope of grant funding will be expanded to include corporate venture capital (CVC) entities, at funding support of up to 50% of qualifying expenses, capped at S$2 million per project. Moreover, the funding will enable CVCs to offer strong mentorship and support to help start-ups scale and develop resilient and viable business models.
Moreover, MAS recognises the importance of partnering with the industry to support innovative fintech solutions arising from emerging technologies such as Web 3.0. MAS will conduct open calls for the use of innovative technologies in industry use cases. Grant funding will be provided to support actual trial and commercialisation.
Lastly, MAS also aims to support the development and deployment of projects that address ESG data, reporting, and analytics needs of the financial sector, at funding support of up to 50% of qualifying expenses, capped at S$500,000 per project.
Ravi Menon, managing director at MAS, said, “Since 2015, the Financial Sector Development Fund (FSDF) has awarded $340 million as part of the FSTI programme to drive the adoption of technology and innovation in the financial sector. Transformative technology projects that MAS has piloted with the industry include SGFinDex, Project Orchid’s Purpose Bound Money, Project Veritas’ Responsible AI, green and sustainable finance through Project Greenprint, as well as large payment initiatives such as the cross-border payment linkage with Thailand.”
He added, “Notably, FSTI 1.0 and 2.0 helped strengthen the digital capabilities of financial institutions which served them and their customers through the COVID pandemic. With FSTI 3.0, we look forward to continued collaboration with the industry to advance purposeful financial innovation.”
