The Singapore Monetary Authority announced on the 13th that it will invest S $250 million (about RMB 1.266 billion) in the next three years to implement the enhanced financial sector technology and innovation plan (fsti 2.0) to accelerate technology and innovation driven growth in the financial sector.
the plan will also strengthen the HKMA’s support for large-scale innovation projects and build a stronger talent pipeline for Singapore’s financial technology sector.
specifically, the HKMA will support innovation in the financial sector in three ways. First, the HKMA will strengthen its support for early technical trials. Under the enhanced financial sector technology and Innovation Programme, the HKMA will increase the maximum funding for proof of concept (POC) projects from S $200000 to S $400000 and from 50% to 70% of the cost of eligible projects. More financial support will enable financial institutions and fintech companies to undertake larger scale proof of concept projects, which will enable them to test, develop and deploy innovative solutions with the support of emerging technologies.
at the same time, the HKMA has adjusted the funding mechanism for qualified projects to a preferential and graded funding mechanism, that is, higher levels of funds will be allocated to projects that show greater benefits. The amount and ceiling of each applicant will be determined according to the voting results of the panel.
secondly, the HKMA will strengthen the application of artificial intelligence (AI) in the financial industry. The Department will increase the maximum funding for all eligible projects under the artificial intelligence and data analysis (Aida) system from S $1 million to S $1.5 million, providing greater impetus for financial institutions to implement breakthrough and innovative artificial intelligence solutions. In addition, the HKMA will introduce a new Aida Lite funding system. Participating projects will receive half of the funding support under the AIDA system. With this new system, financial institutions will be able to get financial support to adopt proven artificial intelligence solutions, thus strengthening their own operations.
Thirdly, the HKMA will build a stronger financial technology talent pipeline in Singapore. When the established innovation laboratory recruits new local staff in Singapore, it can obtain part of the financial support from the HKMA. The funding will encourage established laboratories to expand and train local talents in Singapore. In addition, all financial institution level projects, industry wide projects and projects under Aida system are now eligible for training subsidies related to capacity transfer. The subsidy covers the cost of hiring experts to train local talents and sending local staff to overseas for training. These training programs will help to support labor force transformation in the financial sector.