MAS announces $35m grant for smaller financial institutions

By Edil Corneille

The Monetary Authority of Singapore (MAS) announced the launch of a S$35 million Productivity Solutions Grant (PSG) for the financial services sector to help smaller financial institutions with not more than 200 employees adopt digital solutions for more streamlined data reporting to MAS. The grant is currently applicable to banks and will be subsequently expanded to include insurers and capital market intermediaries.

The PSG provides funding support for smaller financial institutions to adopt regulatory reporting solutions from pre-approved managed service providers. These technologies will facilitate more efficient processes for the preparation and submission of data, in line with regulatory requirements.

The PSG will co-fund up to 30 per cent of qualifying expenses for the adoption of digital solutions from the pre-approved managed service solution providers, capped at $250,000 per project for banks. Eligible banks can now apply for funding via the Business Grants Portal, a centralised portal for businesses to apply for government grants.

This grant is part of MAS’ recent initiatives to support smaller financial institutions in their efforts to improve productivity. Smaller financial institutions that wish to adopt digital solutions outside of regulatory reporting can consider the Digital Acceleration Grant (DAG).

Sopnendu Mohanty, Chief FinTech Officer, MAS said, “The co-funding support for the adoption of regulatory reporting solutions will help smaller financial institutions leverage technology to better meet regulatory obligations. There are now a range of grant schemes specific to smaller financial institutions. Together, these schemes provide strong support for these financial institutions to adopt solutions that improve their operational capabilities in various domains.”