The Monetary Authority of Singapore (MAS) has launched a S$125 million support package (Support Package) to sustain and strengthen capabilities in the Financial Services and FinTech sectors in light of these unprecedented times. The Support Package will help position financial institutions (FIs) and FinTech firms for stronger growth when COVID-19 recedes and economic activity strengthens.

The Support Package – funded by the Financial Sector Development Fund (FSDF) and effective on 8 April 2020 – has three (3) main components: (a) supporting workforce training and manpower costs; (b) strengthening digitalisation and operational resilience; and (c) enhancing FinTech firms’ access to digital platforms and tools.

Supporting Workforce Training and Manpower Costs

MAS will launch a Training Allowance Grant (TAG) to encourage FIs and FinTech firms to fortify themselves in light of the current slowdown in economic activity and deepen the capabilities of their employees and expand their skill set. The TAG will also be available to support Singapore Citizens (SC) and Permanent Residents (PR) outside the financial services and FinTech sectors. The TAG will supplement the Jobs Support Scheme announced in the Resilience Budget and Solidarity Budget, by providing training allowances (e.g. S$10 or S$15 per training hour) for completing training in selected courses accredited by the Institute of Banking and Finance (IBF). Furthermore, MAS and IBF will increase course fee subsidies for SCs and PRs attending relevant IBF courses to 90%, from the current range of 50% to 70%.

Finally, MAS will double the salary support for FIs to hire SC fresh graduates or workers from other sectors and place them in talent development programmes under the Finance Associate Management Scheme (FAMS). The FAMS helps groom Singaporeans for future specialist and management roles in the financial services industry through structured programmes offered by FIs.

Strengthening Digitalisation and Operational Resilience

MAS will set up a Digital Acceleration Grant (DAG) to support digitalisation in smaller FIs and FinTech firms. The DAG will help these firms adopt digital solutions to strengthen operational resilience, process efficiency, risk management and customer service. This will include the adoption of digital tools and upgrading of systems that help facilitate business continuity (e.g. document collaboration solutions and virtual conferencing systems). The DAG will have two (2) tracks: (a) the Institution Project Track – which supports 80% of qualifying expenses for the adoption of digital solutions, up to a cap of S$120,000 per entity; and (a) the Industry Pilot Track – which supports collaboration among at least 3 smaller FIs to customise digital solutions for implementation within their institutions, by co-funding 80% of qualifying expenses, up to a cap of S$100,000 per participating FI per project.

Enhancing FinTech Firms’ Access to Digital Platforms and Tools

MAS will provide all locally incorporated FinTech firms six (6) months’ free access to API Exchange (APIX), an online global marketplace and sandbox for collaboration and sales. Through APIX, FIs and FinTech firms can integrate and test solutions via a cloud-based architecture. MAS will also partner with the Singapore FinTech Association to set up a digital self-assessment framework for MAS’ Outsourcing and TRM Guidelines hosted on APIX. Completing this self-assessment will help FinTech firms provide a first-level assurance to FIs about the quality of their solutions.

Conclusion

By working closely with industry stakeholders, MAS has significantly enhanced existing initiatives and introduced targeted schemes to help FIs, FinTech firms and their employees not only navigate the current headwinds, but at the same time deepen competencies, skills, and networks. MAS encourages FIs and FinTech firms and financial sector professionals to actively tap on these opportunities. This is with the hope that Singapore can emerge from this COVID-19 crisis a more robust, resilient, reputable, and relevant global financial and FinTech hub.

Dentons Rodyk thanks and acknowledges Practice Trainee Jastine Yew for her contributions to this article.