The Monetary Authority of Singapore (MAS) has committed up to S$100 million to support the development of quantum and artificial intelligence capabilities in the financial sector. This funding is part of the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0), which was introduced by MAS in June 2015 to promote innovation in the financial sector. The scheme was enhanced by Deputy Prime Minister Lawrence Wong at the Singapore FinTech Festival in 2022.
The quantum track under FSTI 3.0 will support financial institutions in building capabilities in quantum technologies, including quantum computing and security innovation functions. MAS is collaborating with the National Quantum Office, following the announcement of the National Quantum Strategy by Deputy Prime Minister Heng Swee Keat in May 2024.
In addition to quantum technology, MAS is also enhancing its existing AI and data grant scheme under FSTI 3.0 to support financial institutions in developing and deploying AI technologies in Singapore. This includes establishing AI innovation centers and developing AI platforms to address industry-wide use cases, such as scam and fraud detection.
Supporting Innovation in the Financial Sector: MAS Commits up to S$100 Million
The Monetary Authority of Singapore (MAS) has announced a commitment of up to S$100 million under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0) to support innovation in the financial sector, with a focus on quantum technology and artificial intelligence.
Fostering Quantum Capabilities in Finance
The MAS will introduce a new Quantum track under FSTI 3.0, which aims to enhance the adoption of quantum technology in the financial industry. The track consists of three components: a Security grant, a Talent Development initiative, and a Quantum Innovation Centre.
The Security grant will provide funding support for projects that explore the use of Post-quantum Cryptography (PQC) and Quantum Key Distribution (QKD) to safeguard critical data in the financial sector. The Talent Development initiative will work with Institutes of Higher Learning and the Institute of Banking and Finance to develop talent development programs, ensuring that the financial services sector has the necessary skills to adopt quantum technology.
The Quantum Innovation Centre will provide a platform for financial institutions, research institutions, and technology solution providers to collaborate on the development and deployment of quantum solutions. The centre will focus on advancing the exploration and implementation of quantum technology in areas such as risk management, portfolio optimization, and cybersecurity.
Enhancing Artificial Intelligence Adoption
In addition to the Quantum track, the MAS will also enhance its existing AI and data grant scheme under FSTI 3.0. The enhanced support will focus on two key areas: developing AI platforms to address industry-wide use cases and bolstering financial institutions’ development and deployment of AI technologies in Singapore.
The first area of focus will involve the development of frameworks and platforms for policies and protocols that enable secure and privacy-protected data exchange, allowing financial institutions to collaborate on industry-wide use cases. The MAS has identified scam and fraud detection as a potential pilot project, and will work with banks, technology solution providers, and public agencies to develop this use case.
The second area of focus will involve supporting financial institutions in establishing AI innovation centres in Singapore, which will focus on developing and deploying AI solutions for high-impact use cases. The MAS aims to position Singapore as a centre of excellence for anchoring AI capabilities in the financial sector.
Supporting Innovation in the Financial Sector
The commitment of up to S$100 million by the MAS demonstrates its continued support for innovation in the financial sector. By fostering the adoption of quantum technology and artificial intelligence, the MAS aims to promote sustainable and inclusive economic growth, create new opportunities for financial institutions, and enhance the overall competitiveness of Singapore’s financial sector.
In recent years, the MAS has taken several initiatives to support innovation in the financial sector, including the establishment of the FinTech Regulatory Sandbox, which provides a conducive environment for fintech experimentation. The authority has also launched various grant schemes and programs to support the development of innovative financial solutions.
The commitment of up to S$100 million under FSTI 3.0 is expected to further accelerate innovation in the financial sector, driving growth and job creation in Singapore’s economy.
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