New Scheme Aims To Push SG Fintech Boundaries
- By CDOTrends editors
- August 21, 2023
Singapore is often called the "Silicon Valley of the East," and the Monetary Authority of Singapore (MAS) plans to maintain this momentum. MAS has recently disclosed its plans to earmark up to SGD150 million over the next three years for the revamped Financial Sector Technology and Innovation Scheme (FSTI 3.0). This initiative aims to supercharge innovation by backing ventures that harness groundbreaking tech or hold a regional dimension.
In its new iteration, FSTI 3.0 introduces the following tracks:
- The Enhanced Centre of Excellence track seeks to expand the horizons of grant funding to rope in corporate venture capital entities. With these CVCs playing a pivotal role in spotting and nurturing future-oriented startups, this financial backing empowers them to provide enhanced mentoring and support. The end goal is to enable startups to scale efficiently and carve out robust and sustainable business avenues.
- The Innovation Acceleration track highlights MAS's significance in teaming up with the broader industry to catalyze innovative FinTech solutions stemming from next-gen tech like Web 3.0. Through this track, MAS plans to usher in open calls for adopting these innovative technologies in real-world scenarios and will finance the trials and subsequent commercial launches.
- The Environmental, Social, and Governance (ESG) FinTech track zeroes in on the burgeoning demand for ESG fintech tools and solutions. It is set to bolster the inception and roll-out of projects catering to the financial world's ESG data, reporting, and analytics necessities.
Furthermore, FSTI 3.0 commits to promoting advancements in Artificial Intelligence, Data Analytics, and Regulation Technology. A noteworthy mention is MAS’s intention to advocate for AI and Data adoption, especially within smaller finance outfits and for firms striving to incorporate RegTech solutions. A significant part of this endeavor is also allocating resources toward grooming local FinTech talent.
Reflecting on the journey thus far, Ravi Menon, managing director, MAS, expressed, “Since 2015, the Financial Sector Development Fund (FSDF) has awarded SGD340 million as part of the FSTI programme to drive the adoption of technology and innovation in the financial sector. Notably, FSTI 1.0 and 2.0 helped strengthen the digital capabilities of financial institutions, which served them and their customers through the COVID pandemic. With FSTI 3.0, we look forward to continued collaboration with the industry to advance purposeful financial innovation."
Image credit: iStockphoto/doomu