The Monetary Authority of Singapore (MAS) will be spending S$225 million over the next five years to boost the financial technology (fintech) scene in the republic.
The fund falls under the Financial Sector Technology and Innovation (FSTI) scheme, which aims to develop Singapore as a smart financial centre, said MAS' managing director Ravi Menon at the Global Technology Law Conference on Monday (29 June 2015).
He added that the fund could be used to help financial institutions set up innovation labs, further develop their fintech solutions, and build the infrastructure required to deliver fintech services. Ongoing projects that are supported by FSTI include a cyber risk test-bed, and a decentralised record-keeping system -- based on block chain technology -- that prevents duplicate invoicing in trade finance.
Menon also emphasised that a safe and secure environment is critical in fostering financial innovation. "If not managed well, technology can potentially lead to a variety of risks in the financial industry. The first priority on our journey towards a smart financial centre is therefore to continually strengthen the industry's cyber security."
To do so, MAS will work with industry players to develop regulations on new technology and infrastructure. It will also roll out solutions such as a technology-enabled regulatory reporting system and smart surveillance to enhance security in the finance sector.