Issue #6: 2021 | MAS commits $42m to spur adoption of technology solutions
30 April 2021 - The Monetary Authority of Singapore (MAS) has announced a new Regulatory Technology (RegTech) grant and Digital Accelerator grant (DAG) scheme to help accelerate the adoption of technology for the financial sector. MAS will commit $42 million for the RegTech grant scheme and enhanced DAG scheme
Regulatory Technology (RegTech) Grant
The grant is available to Singapore-based financial Institutions (FIs). RegTech aims to promote integration and adoption of technology solutions in the risk management and compliance function of Financial Institutions. Its objective is to help Financial Institutions enhance capabilities and processes to promote a vibrant RegTech ecosystem in Singapore.
The grant scheme covers two tracks that can be used to support in-house development or commercial partnerships with RegTech firms based in Singapore. The tracks are the Pilot track and Production level project track, respectively.
Under the Pilot track, Financial Institutions can seek funding to pilot potential Regulatory Technology (RegTech) solutions before embarking on full-scale integration of the product into its operating environment. Funding is capped at S$75,000.
Financial Institutions can seek funding to develop larger-scale customised projects integrated into the Financial Institutions System through the production level project track. The funding is capped at S$300,000
To help smaller Financial Technology (FinTech) firms and Financial Institutions adopt digital solutions to cope with the impact of COVID-19 and position themselves for subsequent recovery and growth, the DAG was set up and launched by MAS in April 2020.
MAS received over 1100 applications from FIs and Fintech firms to tap on the DAG to adopt cloud solutions and services, data analytics solutions, compliance solutions, and office productivity tools. Due to massive response, MAS commits an additional S$30 million to the DAG till 31 December 2021 to help the industry to adopt digital solutions that enhance productivity, cybersecurity, and operational efficiency.
The following are the fundamental changes to the Enhanced DAG:
Applicants must fulfill a minimum of 6 months before usage of the digital solution to be eligible for the grant.
Publishing pre-approved solutions list
Applicants can refer to the General solution list to ascertain if a solution is listed or can be funded under this grant. Applicants can still obtain IPA (In-Principle approval) for solutions that are not listed.
Cessation of support for specific solutions
Funding is no longer available for all hardware, equipment supporting alternative work arrangements, and essential digital solutions such as email services and office productivity tools. Some of the examples can be found on the DAG website (https://www.mas.gov.sg/development/fintech/digital-acceleration-grant).
Extension of DAG eligibility
Aside from MAS licensed FIs and Fintech firms with less than 200 employees, Life Insurance and General Insurance agencies with less than 200 employees and representatives will also be eligible for DAG support. Life Insurance and General Insurance Agencies will submit claims for expenses incurred after 1 April 2021.
MAS commits $42m to spur adoption of technology solutions for risk management and regulatory compliance
Annex A - Key changes to Digital Acceleration Grant Institution Project track