MAS Announces Grant Scheme to Spur Adoption of Regtech Solutions
MAS announced a new RegTech grant scheme and an enhancement of the Digital Acceleration Grant (DAG) scheme to accelerate technology adoption in the financial sector. MAS will commit SGD 42 million for the RegTech grant scheme and the enhanced DAG scheme. Applications are now open for both grants. These grants are part of the SGD 250 million committed under the enhanced Financial Sector Technology and Innovation Scheme (FSTI 2.0) in August 2020. Mr. Sopnendu Mohanty, the Chief FinTech Officer of MAS, said, “We encourage FIs [financial institutions] to tap on these grants to embed technology into the firms’ DNA.”
The RegTech grant scheme, which is available to Singapore-based financial institutions, aims to promote the adoption and integration of technology solutions in the risk management and compliance functions of these institutions. This will help financial institutions enhance processes and capabilities in these domains and encourage a vibrant RegTech ecosystem in Singapore. The grant scheme will cover two tracks. Under the pilot track, financial institutions can seek funding to pilot potential RegTech solutions before embarking on full-scale integration of the product into its operating environment; funding for this track will be capped at SGD 75,000. Through the production level project track, financial institutions can seek funding to develop larger scale customized projects that can be fully integrated into their systems; funding for such projects will be capped at SGD 300,000. Both tracks can be used to support either in-house development or commercial partnerships with RegTech firms based in Singapore.
The DAG scheme, which was first launched in April 2020, is intended to help smaller financial institutions and fintech firms adopt digital solutions to better cope with the impact of COVID-19 and to position themselves for subsequent recovery and growth. As of March 31, 2021, MAS received over 1,100 applications from both financial institutions and fintech firms. Applicants have tapped on the DAG to adopt cloud solutions and services, online communication and collaboration tools, data-analytics solutions, compliance solutions, and office productivity tools. In view of the strong response, MAS will commit an additional SGD 30 million to the DAG till December 31, 2021 to encourage the industry to adopt digital solutions that enhance productivity, cyber security, and operational efficiency. This brings the total grants available under the DAG scheme to SGD 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.
Keywords: Asia Pacific, Singapore, Banking, Insurance, Fintech, Regtech, Compliance Risk, DAG Scheme, Regtech Grant Scheme, Small Banks, Artificial Intelligence, MAS
Previous Article
PRA Provides Updated Guidance on COVID-19 Disclosures by Banks in UKRelated Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards