MAS commits over $31 million to spur adoption of technology solutions for risk management and regulatory compliance

Published on 30 April 2021
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MAS commits over $31 million to spur adoption of technology solutions for risk management and regulatory compliance

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Singapore, 30 April 2021 - The Monetary Authority of Singapore (MAS) announced today a new Regulatory Technology (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 ($31.6 million) for the RegTech grant scheme and enhanced DAG scheme.

RegTech Grant

The RegTech grant scheme, 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 grant scheme will cover two tracks.

Under the pilot track, FIs 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, 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 SGD 300,000.

Both tracks can be used to support either in-house development or commercial partnerships with RegTech firms based in Singapore.

Enhanced DAG

The DAG2 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 SGD 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 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.

Mr Sopnendu Mohanty, Chief FinTech Officer, MAS, 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. We encourage FIs to tap on these grants to embed technology into the firms’ DNA.”

Applications are now open for both grants. Please refer to the MAS website for more information and the application form for the DAG. To request an application form for the RegTech Grant.

Re-disseminated by The Asian Banker