The Monetary Authority of Singapore (MAS) has announced an additional S$100 million commitment under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0). This initiative aims to bolster capabilities in quantum and artificial intelligence (AI) technologies within the financial sector, driving forward innovation and adoption of these advanced technologies.
Quantum Technology Development in Financial Industry
Quantum technology, with its transformative potential, is rapidly advancing and holds significant promise for the financial industry and broader economy. Following the National Quantum Strategy announced by Deputy Prime Minister Heng Swee Keat in May 2024, MAS is collaborating with the National Quantum Office to establish a Quantum track under FSTI 3.0. This track includes:
– Technology Centres Grant: Supports the establishment of quantum computing and security innovation functions in Singapore, enabling financial institutions and global technology companies to explore quantum opportunities. The grant provides funding support of up to 50% for manpower and other qualifying expenses over 24 months.
– Technology Innovation Grant: Comprising two sub-tracks, this grant supports the adoption of quantum technology solutions by financial institutions. The first sub-track aims to catalyze meaningful institutional use cases with significant business impact, while the second sub-track supports strategic efforts to solve industry-wide problems. Up to 50% co-funding support is available.
– Security Grant: Aims to enhance cybersecurity readiness for the quantum era, providing up to 30% funding support for projects experimenting with Post-quantum Cryptography (PQC) and Quantum Key Distribution (QKD) to safeguard critical data.
MAS will also collaborate with Institutes of Higher Learning and the Institute of Banking and Finance to support talent development initiatives in the quantum technology sector.
Enhancing AI Adoption in Financial Industry
With advancements in AI technology, financial institutions are increasingly adopting AI tools. Generative AI, in particular, has spurred initiatives to explore its opportunities and risks. To support this, MAS will enhance the existing AI and data grant scheme under FSTI 3.0, focusing on:
– AI Innovation Centres: Supporting the establishment of AI innovation centres in Singapore to develop and deploy AI technologies, including model building and training, deployment for high-impact use cases, governance, risk management, and monitoring.
– Industry-wide AI Platforms: Developing frameworks and platforms for secure and privacy-protected data exchange to address industry-wide use cases, such as scam and fraud detection. MAS will work with banks, technology providers, and public agencies on these projects.
Further details on the enhanced AI support will be announced in the coming months.
