The Monetary Authority of Singapore (MAS) is pledging $42 million towards two schemes aimed at promoting the adoption of tech and digital solutions within the financial sector - a new Regulatory Technology (RegTech) grant scheme and the existing Digital Acceleration Grant (DAG) scheme.

The RegTech grant scheme is available to Singapore-based financial institutions (FIs), aims to promote the adoption and integration of technology solutions in the risk management and compliance functions of FIs. 

The grant scheme has two tracks - the pilot track and the projection level project tract. Under the pilot track, FIs can seek funding to pilot potential RegTech solutions before embarking on full-scale integration of the product into its operating environment. Funding is capped at $75,000.

Under the production level project track, FIs can seek funding to develop larger-scale customised projects that can be fully integrated into the FI’s systems. Funding for this track is capped at $300,000.

Both tracks can be used to support either in-house development or commercial partnerships with RegTech firms based in Singapore.

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As for the DAG, MAS will commit an additional $30 million towards the scheme following a strong response since its launch in April 2020.

The scheme aims at helping smaller FIs and fintech firms (with not more than 200 employees) to adopt digital solutions to better face Covid-19 challenges, including cloud and data-analytics solutions and productivity tools.

As of end-March, MAS has received 1,100 applications for the grant. 

The additional $30 million from MAS brings the total grants available under the DAG scheme to $65 million. Eligibility for the DAG will be extended to life insurance and general insurance agencies that employ not more than 200 agents and employees.

Sopnendu Mohanty, chief fintech officer at MAS, says FIs and fintech firms are encouraged to tap on the grants to embed technology into the firms’ DNA.

“We expect the RegTech ecosystem to flourish with widespread use of innovative solutions to aid risk management and compliance. The Digital Acceleration Grant has enabled the smaller FIs 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. 

Both the RegTech grant scheme and the DAG scheme are part of the $250 million committed under the enhanced Financial Sector Technology and Innovation Scheme (FSTI 2.0).