MAS commits $250m to drive innovation, local talents in fintech

The regulator plans to raise the maximum grant for AIDA project from $1m to $1.5m.

The Monetary Authority of Singapore (MAS) has committed $250m over the next three years under the enhanced Financial Sector Technology and Innovation Scheme (FSTI 2.0) to accelerate technology and innovation-driven growth in the financial sector, an announcement revealed.

To enable financial institutions and fintech firms to undertake larger scale projects powered by emerging technolgies. MAS will double the maximum funding quantum under the proof-of-concept (POC) grant from $200,000 to $400,000.

The regulator added that it plans to increase the maximum funding support from 50% to 70% of qualifying project cost under the POC grant.

Further, MAS plans to introduce a merit-based tiered funding mechanism to replace the existing flat 50% funding support of qualifying project cost. POC projects deemed to demonstrate “stronger merits”—strength of concept, innovative use of technology, ability to successfully execute the project, benefits to the industry—will be give a higher level of funding.

The regulator is also looking to bolster local fintech talent by co-funding existing innovation labs for new Singaporean hires. This is also aimed to help existing labs in Singapore expand.

MAS will raise the maximum funding quantum for all qualifying projects under the Artificial Intelligence and Data Analytics (AIDA) Grant from $1m to $1.5m.

The current AIDA-Research Track will be discontinued to avoid duplication of funding support for academic research projects by other government agencies. Instead, MAS said that it will introduce a new AIDA-Lite track, providing half the funding quantum of the AIDA track, which will grant funding support to financial institutions to adopt proven AI solutions.

Finally, all new projects under the Financial Institution-Level Projects, Industry-Wide Projects and AIDA Tracks will now qualify for funding support for capability transfer-related training costs, according to MAS.

The launch of FSTI 2.0 was announced by MAS managing director Ravi Menon at the Singapore FinTech Festival: Green Shoots Series, a series of virtual meet-ups for the fintech community to share practical advice on a variety of business and fintech-related topics.