The funds could be used to support up to 30% of eligible expenses for digital tools from pre-approved providers with a maximum spend of $18,5342 (S$250,000) for each project.
It applies to banks for now and will be extended to insurers and capital market intermediaries. Banks can apply for the fund through the Business Grant Portal.
This grant is part of a support programme for financial institutions to adopt tools for better operational capabilities, according to MAS chief fintech officer Sopnendu Mohanty.
Smaller financial institutions could apply for a digital acceleration grant (DAG) if they want to adopt digital tools for tasks other than regulatory reporting. Singapore-based financial institutions and fintech firms with not more than 200 employees are eligible.
The DAG is part of the Financial Sector Technology and Innovation (FSTI) scheme. It seeks to support eligible financial institutions and fintech firms in adopting, customising or collaborating on digitalisation projects to streamline processes and deepen capabilities.
Mark Tan, an expert in corporate and commercial law at Pinsent Masons, the firm behind Out-Law, said, “The extension of this particular grant appears to be a part of an ongoing initiative by the MAS to help smaller financial institutions in meeting their regulatory reporting obligations. Together with the other grant schemes currently on offer by the MAS, this puts in place a strong level of support for smaller financial institutions looking to adopt digital tools and solutions to better their operational capabilities in various areas. “