Fresh funding for FSTI scheme to focus on tech, innovation in financial sector: MAS

TECHNOLOGY and innovation in the financial sector will be key areas of focus under the Monetary Authority of Singapore’s (MAS) third tranche of funding for the Financial Sector Technology and Innovation Scheme (FSTI 3.0), comprising up to S$150 million over three years.

On Monday (Aug 7), MAS unveiled new tracks under FSTI 3.0 including an Enhanced Centre of Excellence track, formerly known as the Innovation Labs track.

The scope of grant funding under this track will be expanded to include corporate venture capital (CVC) entities at funding support of up to 50 per cent of qualifying expenses including manpower and rental, capped at S$2 million per project.

“Given the importance of CVCs in identifying and nurturing the next generation of startups, the funding will enable CVCs to offer strong mentorship and support to help start-ups scale and develop resilient and viable business models,” said MAS.

The authority will award funding support of up to 50 per cent of qualifying expenses to projects that address ESG (environmental, social and governance) data, reporting, and analytics needs of the financial sector. Funding under this track, known as the ESG Fintech track, will be capped at S$500,000 per project.

Under the Innovation Acceleration track, MAS also intends to conduct open calls for the use of innovative technologies in industry use cases. Grant funding will be provided to support actual trial and commercialisation.

“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),” said MAS.

The authority intends to specifically focus on promoting Aida adoption in smaller financial firms, while also supporting the needs of less-digitally mature forms looking to acquire regtech solutions.

It said that applicants across tracks will also be required to devote resources to talent development to strengthen Singapore’s fintech talent pool.

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“With FSTI 3.0, we look forward to continued collaboration with the industry to advance purposeful financial innovation,” said MAS’ managing director, Ravi Menon.

The authority’s third tranche of funding to the FSTI scheme was announced by Deputy Prime Minister Lawrence Wong at the Singapore Fintech Festival in November 2022.