- MAS injects SGD 150 million via FSTI 3.0 to boost innovation in the financial sector.
- Singapore fintech funding drops 41% in H1’23 according to KPMG report.
- FSTI 1.0 and 2.0 previously awarded $340 million.
In an exciting move to boost the financial sector, the Monetary Authority of Singapore (MAS) has revealed its commitment to inject up to SGD 150 million over the next three years through the Financial Sector Technology and Innovation Scheme (FSTI 3.0).
The new wave of funding comes at an opportune time as both the global and Singapore fintech markets appear to have suffered in the first six months of 2023. According to the KPMG Pulse of Fintech H1’23 report, Singapore’s fintech funding fell to USD 934 million across 84 deals, marking a 41% decrease from USD 1.6 billion across 117 deals in H2’22.
This futuristic initiative, spearheaded by Deputy Prime Minister Lawrence Wong, is set to fast-track innovation through cutting-edge technologies and regional nexus while nurturing a thriving tech ecosystem for the financial industry.
The “Enhanced Centre of Excellence” track expands its scope to include corporate venture capital (CVC) entities, enabling CVCs to provide substantial mentorship and assistance to startups. Funding support is up to 50% of qualifying expenses, capped at SGD 2 million per project.
In another track, the “Innovation Acceleration” program aligns with emerging technologies like Web 3.0, facilitating open calls for innovative tech solutions. “Grant funding will be provided to support actual trial and commercialization,” MAS said.
Addressing global concerns, the “ESG FinTech” track champions projects focused on environmental, social, and governance (ESG) aspects within the financial sector. Funding support is up to 50% of qualifying expenses, capped at SGD 500,000 per project.
Additionally, FSTI 3.0 continues to promote Artificial Intelligence and Data Analytics (AIDA) and Regulation Technology (RegTech) adoption. Notably, AIDA adoption will extend to smaller financial firms, while RegTech solutions will be accessible to digitally evolving companies.
The Financial Sector Development Fund (FSDF) has awarded $340 million as part of the FSTI program.
Ravi Menon, Managing Director of MAS, emphasizes the impact of previous FSTI versions. During the COVID pandemic, FSTI 1.0 and 2.0 played a significant role in enhancing digital capabilities for financial institutions.
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