RegTech Grant and Enhanced Digital Acceleration Grant to Spur Tech Adoption in Singapore’s Financial Sector
On 30 April 2021, the Monetary Authority of Singapore (MAS) announced a S$42 million grant scheme that aims to accelerate technology adoption in the financial sector, specifically for risk management and regulatory compliance.
Regulatory Technology (RegTech) Grant
The Regulatory Technology or “RegTech” Grant, which 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. This will help FIs enhance processes and capabilities in these domains, and encourage a vibrant RegTech ecosystem in Singapore.
The RegTech Grant will cover two (2) tracks.
- Under the pilot track, FIs can seek funding to pilot potential RegTech solutions before embarking on full-scale integration of the product into their operating environments. Funding for this track will be capped at S$75,000.
- Through 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 such projects will be capped at S$300,000.
Both tracks can be used to support either in-house development or commercial partnerships with RegTech firms based in Singapore.
Enhanced Digital Acceleration Grant (Enhanced DAG)
You may read about MAS’ response to the Covid-19 situation and our article on the MAS Digital Acceleration Grant scheme here.
The DAG was launched in April 2020 to help smaller FIs 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 31 March 2021, MAS received over 1,100 applications from both FIs 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 S$30 million to the DAG till 31 December 2021 to encourage the industry to adopt digital solutions that enhance productivity, cyber security and operational efficiency.
This brings the total grant amount available under the DAG scheme to S$65 million. Eligibility for the DAG will also be extended to life insurance and general insurance agencies that employ not more than 200 agents and employees. The key enhancements to the DAG can be access here in this MAS website link to Annex A.
This update is provided to you for general information and should not be relied upon as legal advice.