Singapore raises FinTech backing to $173m as AI adoption gathers pace

By Puja Sharma

Singapore is committing $170 million (S$220 million) over the next three years to strengthen financial technology innovation, with the Monetary Authority of Singapore (MAS) using the new funding to accelerate technology adoption, develop digital capabilities and support the country’s FinTech ecosystem.

The funding forms part of the Financial Sector Technology and Innovation (FSTI) Scheme 4.0, the latest phase of a programme launched in 2015 to encourage technology-driven transformation across Singapore’s financial services industry. The initiative is designed to help financial institutions and FinTech companies develop and deploy emerging technologies while strengthening the country’s position as a global financial centre.

A significant portion of the programme will focus on frontier technologies, including artificial intelligence (AI), as financial institutions increasingly explore their use across banking, insurance, payments and other financial services. The funding is expected to support experimentation, technology development and the wider deployment of solutions that can improve operational efficiency and create new financial services.

The initiative will also place greater emphasis on building talent and strengthening Singapore’s broader innovation ecosystem. By supporting skills development and collaboration between financial institutions, technology companies, FinTechs and other industry participants, MAS aims to help promising technologies move from development into practical financial services applications.

Singapore’s FinTech market has continued to expand. Official figures show that FinTech investments in the country reached S$2.9 billion last year, while the city-state is home to more than 1,800 FinTech companies employing nearly 10,000 people. The latest funding commitment builds on this ecosystem and seeks to support its next stage of development.

Deputy Prime Minister and MAS Chairman Gan Kim Yong highlighted the potential of AI and other emerging technologies to create new growth opportunities for the financial sector. The latest FSTI programme reflects Singapore’s intention to invest in these technologies while ensuring that financial institutions have the capabilities and talent required to adopt them effectively.

The move also comes as financial centres compete to attract investment, technology companies and financial institutions. Gan acknowledged that Singapore faces competition from other major hubs, including Hong Kong, as well as financial centres globally. Rather than viewing competition as a zero-sum contest, Singapore is seeking to maintain its position by continuing to invest in innovation and develop its financial ecosystem.

The S$220 million commitment signals continued government support for technology-led financial sector development. Alongside AI and other emerging technologies, the programme’s focus on talent and industry collaboration is intended to strengthen the foundations needed for financial institutions to adopt new technologies at scale.

For Singapore’s FinTech sector, the latest FSTI phase provides a further push towards commercialising emerging technologies and expanding their use across financial services. The investment also reinforces the country’s longer-term strategy of combining financial-sector expertise with technology innovation to remain competitive in global finance.