The Monetary Authority of Singapore (MAS) has introduced a RegTech grant scheme and an enhanced digital acceleration grant (DAG) program to boost tech use in the financial sector.
To make the schemes more effective, the organisation has stated it will commit $42m for both schemes. The RegTech grant will be available to Singapore-based financial institutions and is aimed at promoting the adoption and integration of technology solutions in the risk management and compliance function of the organisations.
MAS claims this scheme will aid the institutions in bolstered processes and capabilities in these areas and encourage a ‘vibrant RegTech ecosystem’ in Singapore.
According to MAS, the RegTech grant scheme will cover two tracks. Under the first, pilot track, financial institutions will be able to seek funding to pilot potential RegTech solutions before beginning a full-scale integration of the product into its operating environment.
Meanwhile, the second, production level track, will enable financial institutions to seek funding to create larger-scale projects that can be integrated into their systems. Funding for the two tracks is capped at S$75,000 and S$300,000, respectively.
The DAG was originally launched in April last year in order to support FinTechs in adopting digital solutions to better manage Covid-19 and position themselves more effectively for growth post-pandemic.
However, the company had received over 1,100 applications from both financial institutions and FinTech’s as of 31 March 2021, therefore the company has decided to commit an extra S$30m to the DAG till the end of this year – bringing total grants available on the program to S$65m.
MAS noted this enhanced support will help encourage the industry to adopt digital solutions that enhance productivity, cybersecurity and operational efficiency.
Applications are now open to financial institutions and FinTechs for both grants.
MAS chief FinTech officer Sopnendu Mohanty said, “MAS remains committed to the digital transformation of the Singapore financial sector. We expect the RegTech ecosystem to flourish with the widespread use of innovative solutions to aid risk management and compliance.
The DAG has enabled the smaller financial institutions and FinTech firms to adapt to the challenges in the past year and we will continue to support these firms as they accelerate their digital transformation journey. We encourage financial institutions to tap on these grants to embed technology into the firms’ DNA.”
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