The Monetary Authority of Singapore (MAS) has announced a new Regulatory Technology (RegTech) grant scheme and enhancement of the Digital Acceleration Grant (DAG) scheme. MAS will commit S$42 million for the RegTech grant scheme and DAG scheme.
The RegTech scheme aims to promote adoption and integration of technology solutions in risk management and compliance functions of financial institutions. This will help financial institutions to enable processes and capabilities in these domains. The RegTech scheme will cover 2 tracks. Under the pilot track, financial institutions can seek funding to pilot potential RegTech solutiions before embarking the full roll out to the operating environment. The funding for this will be capped at S$75,000. The second track, product level project track, will enable financial institutions to seek funding to develop larger scale customized projects that can be fully integrated into their systems and funding will be capped at S$300,000.
The DAG scheme is intended to assist smaller financial institutions and fintech firms adopt digital solutions to better cope with the impact of COVID-19. This scheme was launched in April 2020 and MAS received over 1000 applications. In view of strong response, MAS has committed additional S$30million to DAG scheme bringing total available grant to S$65 million. DAG scheme was introduced to encourage the industry to adopt digital solutions that enhance productivity, cyber security, and operational efficiency. DAG scheme will also be extended to life insurance and general insurance agencies that employ not more than 200 agents and employees.