The Monetary Authority of Singapore (MAS) announced on 18 July 2024 a substantial commitment of S$100 million under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0) to enhance quantum and artificial intelligence (AI) capabilities within the financial sector. This initiative aims to advance innovation and adoption of quantum and AI technologies, providing significant support to financial institutions.
Quantum technology, a rapidly advancing field with transformative potential, is poised to revolutionize the financial industry. Following the National Quantum Strategy announced by Deputy Prime Minister Heng Swee Keat in May 2024, MAS will establish a dedicated Quantum track under FSTI 3.0. This track will offer various grants to support financial institutions in developing quantum capabilities in Singapore. The Quantum track includes the Technology Centres Grant, providing funding up to 50% for establishing quantum computing and security innovation functions, covering manpower and infrastructure costs for 24 months. The Technology Innovation Grant comprises two sub-tracks, supporting impactful institutional use cases and addressing industry-wide problems with quantum solutions, providing up to 50% co-funding. Additionally, the Security Grant offers up to 30% funding to enhance cybersecurity through Post-quantum Cryptography (PQC) and Quantum Key Distribution (QKD) pilots, safeguarding critical data. MAS will also collaborate with Institutes of Higher Learning and the Institute of Banking and Finance to develop quantum talent in the financial services sector.
With recent technological advancements making AI tools more accessible, MAS aims to bolster AI development and deployment within the financial sector. Enhancements to the existing AI and data grant scheme under FSTI 3.0 will support financial institutions in establishing AI innovation centers, developing high-impact AI models, and addressing industry-wide issues such as scam and fraud detection. MAS will back projects that promote secure, privacy-protected data exchange frameworks, enabling collaborative solutions for industry-wide AI use cases. Further details on enhanced AI support will be announced in the coming months.
This significant investment by MAS is expected to accelerate technological advancements within Singapore’s financial sector, fostering innovation and improving operational efficiencies. The commitment sets a benchmark for global jurisdictions, encouraging them to adopt advanced technologies and enhance their financial systems. The integration of quantum and AI technologies will also benefit the burgeoning cryptocurrency sector. Enhanced cybersecurity measures and advanced data analytics can mitigate risks associated with crypto transactions, fostering a safer and more robust digital asset ecosystem. MAS’s initiative underscores Singapore’s commitment to staying at the forefront of financial technology, ensuring a secure and innovative environment for both traditional and digital financial services.
