Fintechs.fi

Fintech & Crypto News

MAS Invests $75 Million to Propel Quantum and AI in Finance

MAS Invests $75 Million to Propel Quantum and AI in Finance

The Monetary Authority of Singapore (MAS) has announced a substantial commitment of S$100 million ($74.4 Million) under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0) to advance quantum and artificial intelligence (AI) technologies in the financial sector. This funding aims to foster innovation, enhance cybersecurity, and support the development of cutting-edge financial solutions.

Quantum Technology: A New Frontier

Quantum technology represents a rapidly evolving field with the potential to revolutionise the financial industry. MAS has partnered with the National Quantum Office following the launch of the National Quantum Strategy by Deputy Prime Minister Heng Swee Keat in May 2024. As part of the FSTI 3.0 initiative, MAS will introduce a Quantum track to bolster quantum capabilities within Singapore’s financial sector.

The Quantum track includes several grant categories:

  • Technology Centres Grant: Provides up to 50% funding for establishing quantum computing and security functions. This includes support for infrastructure, software, and licenses.
  • Technology Innovation Grant: This grant consists of two sub-tracks to encourage institutional use cases with significant business impact and address industry-wide challenges. This grant also offers up to 50% co-funding.
  • Security Grant: This grant focuses on enhancing cybersecurity readiness, with up to 30% funding for projects exploring Post-quantum Cryptography (PQC) and Quantum Key Distribution (QKD).

Additionally, MAS plans to collaborate with local educational and financial institutions on talent development to further these quantum capabilities.

AI Adoption: Expanding Horizons

The financial sector’s adoption of AI has accelerated with recent technological advancements. To support this trend, MAS will enhance its existing AI and data grant scheme. The updated scheme aims to:

  • Establish AI Innovation Centres: Funding will support the development of centres for AI model building, training, and deployment, as well as governance and risk management.
  • Develop AI Platforms: MAS will facilitate industry-wide AI solutions, including the creation of frameworks for secure and privacy-protected data exchange. Initial projects will focus on high-impact areas such as scam and fraud detection.

Conclusion: A Vision for the Future

MAS’s investment in quantum and AI technologies underscores its commitment to positioning Singapore as a global hub for financial innovation. By supporting both quantum and AI advancements, MAS is set to enhance the industry’s capabilities, foster significant breakthroughs, and address emerging challenges in the financial sector.

Read Also: