Additional funding under FSTI 3.0 targets quantum-era security readiness and AI-driven governance and risk management for Singapore financial institutions.

Overview: S$100 Million Additional Commitment Under FSTI 3.0

On 18 July 2024, the Monetary Authority of Singapore (MAS) committed an additional S$100 million under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0) to support financial institutions in building quantum and artificial intelligence capabilities. This injection brings the total FSTI 3.0 allocation to S$250 million, nearly doubling the initial S$150 million announced at the Singapore FinTech Festival in 2022. FSTI 3.0, first launched in 2022, aims to accelerate innovation by backing projects that deploy cutting-edge technologies or demonstrate a regional nexus, reinforcing MAS's long-standing commitment to a vibrant financial technology ecosystem. The new funding specifically targets two strategic pillars: quantum-safe cybersecurity preparedness and AI-driven risk management frameworks.

Quantum Track: Quantum-Safe Cybersecurity Focus

MAS has established a dedicated Quantum track under FSTI 3.0, following the National Quantum Strategy announced by Deputy Prime Minister Heng Swee Keat in May 2024. The track comprises several grant types designed to build end-to-end quantum capabilities in Singapore's financial sector. The Technology Centres Grant provides up to 50% co-funding for establishing quantum computing and security innovation functions, covering manpower and infrastructure costs for up to 24 months. The Security Grant offers up to 30% co-funding to enable financial institutions to experiment with and develop quantum technology-related pilots that safeguard critical data against emerging quantum threats. The Technology Innovation Grant features two sub-tracks: one for impactful institutional use cases and another for addressing industry-wide problems with quantum solutions.

Maximum Co-Funding Rate (%)Source: Orionmano Industries

Quantum technology represents a rapidly advancing field with transformative potential for the financial industry. The Security Grant's emphasis on quantum-era cybersecurity readiness signals MAS's recognition that existing cryptographic standards will face obsolescence as quantum computing matures. Financial institutions that begin pilot programs now under this co-funding structure will be better positioned to migrate to post-quantum cryptographic standards before the technology reaches large-scale commercial viability.

AI Track: AI-Driven Risk Models and Governance

MAS has concurrently enhanced the existing AI and data grant scheme under FSTI 3.0 to accelerate responsible AI adoption across Singapore's financial sector. The enhanced scheme supports financial institutions in establishing AI innovation centres in Singapore, covering the full lifecycle of AI model development: building, training, deployment for high-impact use cases, governance, risk management, testing, and monitoring.

While financial institutions have been progressively adopting AI, recent technological advances—particularly generative AI—have widened the accessibility and accelerated the pace of adoption. MAS notes that the level of AI-readiness and adoption varies significantly across financial institutions in Singapore, with many institutions now piloting generative AI across a range of use cases. The enhanced grant scheme aims to close this readiness gap.

A key feature of the AI track is MAS's backing of projects that promote secure, privacy-protected data exchange frameworks for industry-wide AI use cases, including scam and fraud detection. This collaborative approach recognizes that fraud detection models benefit significantly from shared data pools, while respecting privacy regulations. MAS has indicated that more detailed guidelines for the enhanced AI support will be announced in the coming months, building on initiatives such as Project MindForge, which published an AI Risk Management Toolkit for the financial sector in March 2026.

Impact and Application for Financial Institutions

Eligible applicants under the FSTI 3.0 Quantum and AI tracks include Singapore-based financial institutions, industry consortiums, market associations, and non-financial solution providers. The funding structure differentiates between Singapore Citizens and non-Citizens for manpower expenses: quantum technology centres receive up to 50% co-funding for Singapore Citizens and 25% for non-Citizens (including permanent residents). Security grants operate at up to 30% co-funding across the board. Applicants must submit their proposals at least three months before the intended project commencement date to facilitate discussions and processing.

The S$100 million top-up nearly doubles the initial FSTI 3.0 allocation of S$150 million, underscoring Singapore's ambition to establish itself as a leading global hub for quantum and AI deployment in financial services. For financial institutions operating in Singapore, the timing is strategic. Post-quantum cryptography migration is a multi-year undertaking that requires early experimentation and standardisation work. AI governance frameworks, meanwhile, are being shaped by regulators globally, and Singapore's proactive approach—including the AI Risk Management Toolkit—positions local institutions to set benchmarks rather than react to them.

As detailed guidelines for the AI enhancements roll out in the coming months, the FSTI 3.0 program is expected to accelerate the adoption of quantum-safe security measures and AI-driven risk management frameworks, reinforcing Singapore's position as a global fintech hub. Financial institutions that engage early with these grant programmes will not only de-risk their own technology transition but also contribute to shaping industry-wide standards that will define the next decade of financial services infrastructure.