Investing S$150 Million: MAS's Tech and Innovation Boost for Finance

10 Sep, 2023

Investing S$150 Million MAS Tech and Innovation Boost for Finance

The Monetary Authority of Singapore (MAS) has unveiled an ambitious commitment of up to S$150 million over three years through the renewed Financial Sector Technology and Innovation Scheme (FSTI 3.0). This initiative aims to accelerate and fortify innovation within the financial sector, placing a special emphasis on projects that harness cutting-edge technologies or possess regional significance. Furthermore, FSTI 3.0 reiterates MAS's dedication to fostering a dynamic technology ecosystem in the financial industry.

Under the revamped scheme, FSTI 3.0 introduces several new tracks to enhance its impact:

1. Enhanced Centre of Excellence Track: Formerly known as the Innovation Labs track, this expanded initiative now extends grant funding to include corporate venture capital (CVC) entities. CVCs will receive support of up to 50% of qualifying expenses, capped at S$2 million per project. This backing empowers CVCs to provide invaluable mentorship and guidance, enabling startups to scale and develop resilient business models.

2. Innovation Acceleration Track: Recognizing the significance of industry collaboration, MAS will engage in open calls for innovative technologies in industry use cases. Grant funding will facilitate real-world trials and commercialization of these cutting-edge solutions.

3. Environmental, Social, and Governance (ESG) FinTech Track: This track is designed to spur the adoption of ESG fintech solutions. It supports projects addressing ESG data, reporting, and analytics needs within the financial sector. Funding support of up to 50% of qualifying expenses is available, capped at S$500,000 per project.

FSTI 3.0 maintains its commitment to advancing capabilities in areas such as Artificial Intelligence and Data Analytics (AIDA) and Regulation Technology (RegTech). A particular focus is placed on promoting AIDA adoption among smaller financial firms and addressing the needs of less digitally mature firms seeking RegTech solutions. Talent development is a core requirement across all tracks, strengthening the Singaporean FinTech talent pool.

Mr. Ravi Menon, Managing Director of MAS, emphasizes the significant impact of previous FSTI programs on the financial sector. Notable projects include SGFinDex, Project Orchid’s Purpose Bound Money, Project Veritas’ Responsible AI, and initiatives in green and sustainable finance. As the financial industry continues to evolve, FSTI 3.0 stands as a testament to MAS's commitment to purposeful financial innovation through collaboration with industry partners.

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