The Monetary Authority of Singapore (MAS) recently announced a S$125 million support package for the financial and FinTech sectors. The financial support will help companies in those sectors better manage immediate challenges created by the COVID-19 pandemic and ensure the strong recovery and future growth of the sectors when the pandemic subsides.
The package provides support in three areas: manpower costs, operations costs and access to business opportunities.
MAS’s initiative for helping financial institutions (FIs) and FinTech companies manage their manpower costs includes:
MAS’s Digital Acceleration Grant scheme offers up to 80% funding support for FIs and FinTechs to adopt digital solutions to improve their service offerings, operational resilience and risk management procedures. The funding cap is S$120,000 per entity for one year from 1 February 2020. Participation is limited to Singapore-based FIs and FinTechs with no more than 200 employees, and FinTechs must be certified by the Singapore FinTech Association (SFA).
MAS also offers a 90% course fee subsidy for local employees attending courses under the IBF-Standards Scheme and Financial Training Scheme. IBF will also provide an additional 5% in the form of IBF credit.
FinTechs can qualify for a 50% discount on new office leases at Bridge+. Existing tenants at 80RR may, on a case-by-case basis, qualify for temporary rent relief.
The ASEAN Financial Innovation Network, of which MAS is a founding member, will provide six months’ free access to its APIX service, which is a digital platform for FinTechs to engage with financial institutions globally.
MAS, together with SFA, will create a new digital self-assessment framework for MAS’s Outsourcing and Technology Risk Management Guidelines hosted on APIX. The self-assessment tool is intended to assist FinTech firms in providing first-level assurance to financial institutions of the quality of their solutions.
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Disclaimer: This article is for general information only and does not constitute legal advice.