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The Monetary Authority of Singapore (MAS) has pledged an additional S$100 million to bolster the development of quantum and artificial intelligence technologies within the financial sector. This investment, allocated under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0), aims to accelerate the adoption and innovation of these cutting-edge technologies among financial institutions.
Quantum technology is rapidly evolving, with the potential to significantly transform both the financial industry and the broader economy. MAS is collaborating with the National Quantum Office, following the National Quantum Strategy announced by Deputy Prime Minister Heng Swee Keat in May 2024. To support this initiative, MAS will establish a Quantum track under FSTI 3.0, designed to enhance quantum capabilities within Singapore’s financial sector.
Technology Centres Grant: This grant supports the creation of quantum computing and security innovation functions in Singapore, enabling financial institutions and global tech companies to explore new opportunities in quantum technologies. It offers up to 50% funding for manpower and other qualifying expenses, such as infrastructure, subscriptions, and licenses, for 24 months.
Technology Innovation Grant: This grant includes two sub-tracks aimed at promoting the adoption of quantum technology solutions by financial institutions. The first sub-track encourages the development of significant institutional use cases, while the second supports strategic initiatives addressing industry-wide challenges. Both sub-tracks provide up to 50% co-funding for exploring and implementing quantum solutions.
Security Grant: This grant focuses on enhancing cybersecurity readiness for the quantum era. It provides up to 30% of funding to support the development and experimentation of pilots involving Post-Quantum Cryptography (PQC) and Quantum Key Distribution (QKD) to protect critical data.
MAS will also collaborate with Institutes of Higher Learning and the Institute of Banking and Finance to develop talent and support the growth of quantum capabilities in the financial sector.
While financial institutions have been gradually adopting AI, recent advancements have made these tools more accessible and accelerated their adoption. With the rise of Generative AI, financial institutions are exploring its opportunities and risks and piloting its use across various applications. However, AI readiness and adoption levels vary among financial institutions in Singapore.
To address this, MAS will enhance the existing AI and data grant scheme under FSTI 3.0:
Supporting AI Development and Deployment: Singapore aims to become a centre of excellence for AI capabilities, focusing on developing applications, testing, and deploying AI solutions for the financial sector. MAS will assist financial institutions in establishing AI innovation centres in Singapore for various functions, including AI model building, training, deployment, governance, risk management, and monitoring.
Developing AI Platforms for Industry-Wide Use: The financial industry has strong prospects for using AI to solve industry-wide problems. MAS will support the development of frameworks and platforms that enable secure, privacy-protected data exchange for collaboration on industry-wide use cases. One of the initial pilot projects will focus on scam and fraud detection, with collaboration between banks, technology providers, and public agencies. The funding will support projects that accelerate the development of industry-wide AI solutions and high-impact use cases.
By enhancing support for AI, MAS aims to ensure that Singapore’s financial sector remains competitive and innovative, capable of harnessing the full potential of AI technologies. Further details on the enhanced AI support initiatives will be announced in the coming months, outlining specific projects and collaboration opportunities.
The commitment of S$100 million by MAS under FSTI 3.0 marks a significant step towards reinforcing Singapore’s position as a global leader in financial technology. By focusing on the development and adoption of quantum and AI technologies, MAS is paving the way for a future where advanced technologies drive innovation, enhance cybersecurity, and create new opportunities within the financial sector.
