Singapore’s central bank is set to allocate up to $150 million over the next three years to support startups focused on developing innovative financial technologies.
This funding will be provided under the Financial Sector Technology and Innovation Scheme, which aims to enhance Singapore’s status as a global financial hub. Past versions of this initiative have led to significant advancements, including the creation of the Singapore Financial Data Exchange, the establishment of a cross-border payment link with Thailand, and initiatives promoting responsible AI and sustainable finance.
The new funding will be distributed across three key tracks: up to $2 million for corporate venture capital entities aiding fintech startups in developing viable business models; grants to help scale emerging technology projects, including those in Web 3.0; and investments for projects addressing environmental, social, and governance (ESG) data, reporting, and analytics, with up to $0.5 million available per project.
Applicants across all tracks will be required to invest in talent development to enhance the local fintech skill set.
Ravi Menon, managing director of the Monetary Authority of Singapore, stated that the Financial Sector Development Fund supports skills development, research and development programs, and industry projects and infrastructure for the Singapore financial services sector. He highlighted that earlier phases, FSTI 1.0 and 2.0, successfully bolstered the digital capabilities of financial institutions, enabling them to better serve their customers during the COVID pandemic. With FSTI 3.0, continued collaboration with the industry is anticipated to propel meaningful financial innovation forward.