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
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