The Monetary Authority of Singapore (MAS) announced an additional commitment of S$100 million (about $74 million) under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0).
This funding aims to bolster financial institutions in developing quantum and artificial intelligence (AI) capabilities and foster the innovation and adoption of these technologies within the financial services sector.
Quantum technology, a rapidly evolving field, has the potential to significantly transform the financial industry and the broader economy.
Following the announcement of the National Quantum Strategy by Deputy Prime Minister Heng Swee Keat in May 2024, MAS has been collaborating with the National Quantum Office.
To support the development of quantum capabilities, MAS will establish a Quantum track under FSTI 3.0.
The Quantum track will include several grants. The Technology Centres grant will support the establishment of quantum computing and security innovation functions in Singapore, offering up to 50% funding for manpower and other qualifying expenses for 24 months.
The Technology Innovation grant will have two sub-tracks: one to support meaningful institutional use cases and the other for strategic industry-wide problem-solving, both providing up to 50% co-funding.
The Security grant aims to enhance cybersecurity readiness for the quantum era, offering up to 30% funding for developing pilots exploring Post-quantum Cryptography and Quantum Key Distribution.
MAS will also collaborate with Institutes of Higher Learning and the Institute of Banking and Finance on talent development initiatives to build quantum capabilities in the financial services sector.
As financial institutions increasingly adopt AI, recent technological advancements have made these tools more accessible, accelerating their integration.
With the rise of Generative AI, financial institutions are mapping the technology’s opportunities and risks and piloting it across various use cases. However, the level of AI readiness and adoption varies among institutions in Singapore.
To address this, MAS will enhance the existing AI and data grant scheme under FSTI 3.0. This enhancement aims to bolster the development and deployment of AI technologies, establishing Singapore as a centre of excellence for AI capabilities.
MAS will support financial institutions in setting up AI innovation centres for AI model building and training, governance, risk management, and deployment of high-impact AI models.
Furthermore, MAS will develop AI platforms to address industry-wide use cases, enabling secure and privacy-protected data exchange for collaborative problem-solving.
The initial focus will be on scam and fraud detection, with MAS working with banks, technology solution providers, and public agencies.
Funding will support projects that accelerate the development of industry-wide AI solutions and high-impact use cases.
MAS will announce more details on the enhanced support for AI in the coming months.
