Key Points
- The Monetary Authority of Singapore released a report indicting a plan to commit S$150 M to explore and support emerging FinTech solutions like Web3.
- This report comes at a time when the MAS has been increasing its efforts in regulating and boosting the blockchain industry in the region and via international cooperation with authorities like UK FCA.
On August 7, 2023, the Monetary Authority of Singapore released a report announcing that it committed 150 million Singaporean dollars to explore emerging Financial Technology innovations. This plan progresses the efforts by the regulator to foster the growth of the blockchain industry in the region.
Monetary Authority of Singapore to explore Web 3 and other Fintech innovations
The renewed Financial Sector Technology and Innovation Scheme (FSTI 3.0) seeks to accelerate and strengthen the country’s innovative culture by supporting cutting-edge projects.
An excerpt from the report reads:
FSTI 3.0 seeks to accelerate and strengthen innovation by supporting projects that involve cutting-edge technologies or with a regional nexus while doubling down on the Monetary Authority of Singapore’s commitment to promoting a vibrant technology ecosystem for the financial sector.
According to the report, the new FSTI 3.0 will include 3 new tracks, namely: “The enhanced Centre of Excellence track, formerly known as Labs Track, Innovation Acceleration Track, and Environmental and Social Governance (ESG) FinTech track.” it will also continue to support the advanced capability development in key areas like Artificial Intelligence and Data Analytics (AIDA) and Regulation Technology (RegTech).
The blog announcement said that the Monetary Authority of Singapore would mainly “focus on promoting AIDA adoption in smaller financial firms” and support the need of “less digitally mature firms” seeking to acquire RegTech solutions.
It also noted that applicants “will also be required to devote resources to talent developments” to strengthen the Singaporean FinTech talent pool. Regarding the new turn of events, Mr. Ravi Menon, the Managing Director at the Monetary Authority of Singapore, explained that it has always been in the interest of MAS to support the FinTech industry, and it looks forward to continuing its vision via the FSTI 3.0.
“Since 2015, the Financial Sector Development Fund (FSDF) has awarded $340 million as part of the FSTI program to drive the adoption of technology and innovation in the financial sector.
Transformative technology projects that MAS has piloted with the industry include SGFinDex, Project Orchid’s Purpose Bound Money, Project Veritas’ Responsible AI, green and sustainable finance through Project Greenprint, as well as large payment initiatives such as the cross-border payment linkage with Thailand.
Notably, FSTI 1.0 and 2.0 helped strengthen the digital capabilities of financial institutions, which served them and their customers through the COVID pandemic. With FSTI 3.0, we look forward to continued collaboration with the industry to advance purposeful financial innovation.” He said.
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