MAS Commits S$150M To FSTI 3.0
The Monetary Authority of Singapore (MAS) has made a momentous announcement, committing up to S$150 million over the next three years to the renewed Financial Sector Technology and Innovation Scheme (FSTI 3.0). The scheme aims to accelerate and fortify innovation within the financial sector by providing substantial support to projects involving cutting-edge technologies or with a regional focus. Additionally, MAS intends to bolster its commitment to cultivating a dynamic technology ecosystem for the financial industry.
By supporting projects that utilise cutting-edge technologies or have a regional nexus, FSTI 3.0 aims to strengthen innovation and double down on MAS’ commitment to promote a vibrant ecosystem for the financial industry.
— MAS (@MAS_sg) August 7, 2023
Innovation Acceleration in FSTI 3.0
FSTI 3.0 introduces three new tracks, each with specific objectives to promote technological advancement:
- Enhanced Centre of Excellence Track: This track, previously known as the Innovation Labs track, will be expanded to include corporate venture capital (CVC) entities. These CVCs will receive funding support of up to 50% of qualifying expenses, capped at S$2 million per project. The inclusion of CVCs is deemed crucial in identifying and nurturing the next generation of start-ups, enabling CVCs to offer robust mentorship and support, ultimately helping start-ups scale and develop resilient and viable business models.
- Innovation Acceleration Track: Recognizing the significance of collaboration with the industry, MAS will conduct open calls for the use of innovative technologies in industry-specific use cases. Grant funding will be provided to facilitate actual trials and commercialization of innovative FinTech solutions emerging from cutting-edge technologies like Web 3.0.
- Environmental, Social, and Governance (ESG) FinTech Track: This track aims to spur the adoption of ESG fintech solutions by supporting the development and deployment of projects that address the financial sector’s ESG data, reporting, and analytics needs. Funding support of up to 50% of qualifying expenses, capped at S$500,000 per project, will be available.
Advancing AI and RegTech Capabilities
While FSTI 3.0 focuses on promoting advanced capabilities in areas such as Artificial Intelligence and Data Analytics (AIDA) and Regulation Technology (RegTech), it also emphasizes fostering AIDA adoption in smaller financial firms and supporting less digitally mature firms in acquiring RegTech solutions. Applicants across all tracks will be required to allocate resources to talent development, bolstering Singapore’s FinTech talent pool.
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Mr. Ravi Menon, Managing Director of MAS, expressed his enthusiasm for the continued collaboration with the industry. He highlighted the success of previous FSTI initiatives, which have played a transformative role in driving technology and innovation adoption within the financial sector. Notable projects include SGFinDex, Project Orchid’s Purpose Bound Money, Project Veritas’ Responsible AI, green and sustainable finance through Project Greenprint, and large payment initiatives like the cross-border payment linkage with Thailand. FSTI 1.0 and 2.0 proved instrumental in strengthening the digital capabilities of financial institutions during the COVID pandemic, and FSTI 3.0 is expected to advance purposeful financial innovation, further enhancing Singapore’s position as a leading hub for financial technology and innovation.
