New funding under FSTI 3.0 expands total program to SGD 250M, offering up to 50% co-funding for early movers.

The Monetary Authority of Singapore (MAS) committed an additional S$100 million under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0) on 18 July 2024, directing the funds specifically toward quantum-safe cybersecurity and AI-driven risk models, a dual-track approach that positions early adopters for competitive advantage as these technologies mature. The injection brings total FSTI 3.0 funding to S$250 million, building on the S$150 million initially allocated when the scheme was launched in 2022. FSTI itself was first introduced in 2015 to foster fintech innovation ecosystem development in the city-state.

Program Overview and Funding

MAS announced on 18 July 2024 that it would commit an additional S$100 million under FSTI 3.0 to support financial institutions in building capabilities in quantum and artificial intelligence technologies, as well as enable the advancement of quantum- and AI-related innovation and adoption in financial services. The additional commitment brings the total FSTI 3.0 funding envelope to S$250 million, adding to the S$150 million originally committed when the scheme launched in 2022. FSTI 3.0 is the latest iteration of a scheme introduced by MAS in 2015 to support the creation of a vibrant ecosystem for innovation in the financial sector, as well as financial institutions' projects in spaces including AI, regulatory tech, and environmental, social, and governance fintech.

Funding Amount (SGD million) (S$M)Source: Orionmano Industries

Quantum Track: Building Capabilities for the Post-Quantum Era

The quantum track under FSTI 3.0 is structured across three sub-tracks designed to build institutional capability, drive innovation, and secure Singapore's financial infrastructure for the post-quantum era. The Technology Centres grant supports the establishment of quantum computing and security innovation functions in Singapore, enabling financial institutions and global technology companies to explore and unlock new opportunities arising from quantum technologies. This grant provides funding support of up to 50% on manpower and other qualifying expenses such as hardware/software infrastructure, subscriptions, and licenses, for a period of 24 months.

The Technology Innovation grant comprises two sub-tracks: the first aims to boost institutional use cases, while the second is designed to help solve relevant industry-related issues. The Security grant addresses the most pressing concern for financial institutions—cybersecurity readiness for the quantum era. MAS will provide funding support of up to 30% to enable experimentation and development of quantum technology-related pilots that explore the use of Post-quantum Cryptography (PQC) and Quantum Key Distribution (QKD) to safeguard firms' critical data. MAS will also work with Institutes of Higher Learning and the Institute of Banking and Finance on talent development initiatives to support the development of quantum capabilities in the financial services sector.

AI Track: Enhancing Risk Models and Innovation Centres

MAS has enhanced the existing AI and data grant scheme under FSTI 3.0 to accelerate AI adoption across Singapore's financial institutions, recognizing that the level of AI-readiness varies significantly across firms. The enhanced scheme supports financial institutions in establishing AI innovation centres in Singapore for a range of functions including AI model building and training, deployment of AI models for high-impact use cases, governance and risk management, as well as testing and monitoring.

MAS will back projects that promote secure, privacy-protected data exchange frameworks, enabling collaborative solutions for industry-wide AI use cases including scam and fraud detection. With recent technological advancements making AI tools more accessible, MAS aims to bolster AI development and deployment within the financial sector, addressing the varying levels of AI-readiness observed across financial institutions in Singapore. The regulator noted that while many FIs have begun piloting generative AI across a range of use cases, adoption remains uneven.

Early Adopter Advantage and Talent Development

The co-funding structure of FSTI 3.0 significantly reduces cost barriers for first movers. The Technology Centres grant provides up to 50% co-funding on manpower and qualifying expenses over 24 months, enabling financial institutions to build quantum computing and security innovation infrastructure in Singapore. The Security grant provides up to 30% co-funding for PQC and QKD pilots, allowing early experimentation with quantum-safe cryptographic protocols without bearing the full cost burden.

Talent initiatives with Institutes of Higher Learning and the Institute of Banking and Finance will build a pipeline of quantum and AI specialists, addressing the skills gap that currently constrains adoption. Access to industry-wide AI data exchange frameworks gives early adopters unique collaborative advantages by enabling secure, privacy-protected data sharing for model training and validation. As quantum and AI technologies mature, early adopters subsidized by these grants will be positioned to leapfrog competitors in both security posture and operational efficiency, cementing Singapore's role as a global fintech hub.