The Monetary Authority of Singapore (MAS) has announced new funding to fuel technology adoption in the financial sector.

The central bank of the country will invest S$42m ($31.5m) in a new Regulatory Technology (RegTech) grant scheme and an enhanced Digital Acceleration Grant (DAG) scheme.

The RegTech grant scheme

The RegTech grant scheme is launched to support the integration of technology solutions in the risk management and compliance functions of Singapore-based financial institutions.

Overall, it will cover two tracks.

In the pilot track, the financial institutions can apply for funding to trial potential RegTech solutions. The applicants can receive funding up to S$75,000 under this scheme.

In the production level project track, the FIs can receive up to S$300,000 in funding to develop customised projects that can be fully integrated to the systems.

Both the tracks will support in-house development or commercial partnerships with local RegTech firms.

Enhanced DAG

MAS will allot an additional S$30m to the DAG by the end of this year following strong response. The eligibility of the programme was also expanded to include life insurance and general insurance agencies will less than 200 agents and employees.

The programme was initially launched last year to support digital transformation of smaller financial institutions.

As of 31 March 2021, MAS received more than 1,100 applications from both FIs and FinTech firms under DAG.

MAS chief fintech officer Sopnendu Mohanty said: “MAS remains committed to the digital transformation of the Singapore financial sector. 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.”