The Monetary Authority of Singapore (MAS) has unveiled the Financial Sector Technology and Innovation Scheme 3.0 (FSTI 3.0), a groundbreaking initiative aimed at injecting up to S$150 million into the financial sector over a span of three years.

FSTI 3.0 is set to accelerate innovation within the industry by embracing cutting-edge technologies, including the emerging concept of Web 3.0. This ambitious scheme aims to solidify Singapore’s position as a global FinTech hub, fostering a vibrant ecosystem of technological progress.

Broadening Horizons: FSTI 3.0 Tracks

FSTI 3.0 introduces three distinct tracks, each tailored to amplify the impact of technological innovation within the financial sector:

  1. Enhanced Centre of Excellence Track: Formerly known as the Innovation Labs track, this segment has expanded its scope to include corporate venture capital (CVC) entities. Projects eligible for this track can receive funding support of up to 50% of qualifying expenses, capped at S$2 million per project. The inclusion of CVCs aims to provide strong mentorship and support to start-ups, aiding their growth and fostering the development of resilient business models.

  2. Innovation Acceleration Track: Recognizing the power of collaboration, MAS will partner with the industry through open calls for innovative FinTech solutions. This track is particularly dedicated to harnessing the potential of emerging technologies like Web 3.0. Successful applicants will secure grant funding to facilitate real-world trials and the subsequent commercialization of these groundbreaking solutions.

  3. ESG FinTech Track: With the increasing prominence of environmental, social, and governance (ESG) considerations, this track focuses on promoting the adoption of ESG-focused FinTech solutions. Projects addressing ESG data, reporting, and analytics needs within the financial sector can secure funding support of up to 50% of qualifying expenses, capped at S$500,000 per project. This aligns FSTI 3.0 with the global push for sustainable and responsible finance.

Continuing the Drive for Excellence

FSTI 3.0 goes beyond these new tracks, maintaining its commitment to promoting advanced capability development and adoption in areas such as Artificial Intelligence and Data Analytics (AIDA), as well as Regulation Technology (RegTech). The scheme specifically aims to bolster AIDA adoption within smaller financial entities and provide support for less digitally mature firms looking to integrate RegTech solutions. Notably, all applicants across tracks are expected to allocate resources to talent development, ensuring the growth of the local FinTech workforce and a sustained pool of skilled professionals.

MAS: A Catalyst for Transformative Change

Mr. Ravi Menon, Managing Director of MAS, emphasized the transformative role of the Financial Sector Development Fund (FSDF) since 2015. The FSTI programme, which awarded S$340 million as part of the FSDF, facilitated pioneering projects including SGFinDex, Project Orchid’s Purpose Bound Money, Project Veritas’ Responsible AI, and sustainable finance through Project Greenprint. Moreover, FSTI played a pivotal role in enhancing the digital capabilities of financial institutions during the challenges posed by the COVID-19 pandemic.

With the launch of FSTI 3.0, MAS underscores its dedication to fostering collaboration with the industry and driving impactful financial innovation. As Singapore cements its status as a beacon of technological advancement, the financial sector is poised for an era of growth and transformation, fueled by FSTI 3.0’s visionary initiatives.

Source: https://azcoinnews.com/singapores-mas-unveils-s150-million-fintech-boost-through-fsti-3-0.html