FSTI Proof Of Concept Scheme

The Financial Sector Technology and Innovation(FSTI)- Proof of Concept(POC) scheme aims to (a) promote the undertaking of more experimentation within the financial services sector, and (b) accelerate the development and dissemination of nascent innovative technologies in the financial services. Through the scheme, MAS provides funding support of up to 50-70% of qualifying costs (dependent on project type), up to a maximum of S$200,000, for up to 18 months to Singapore-based FIs as well as technology or solution providers working with Singapore-based FIs for the early stage development of novel solutions to financial industry problems.

The scheme is meant to fund POCs. Applicants may submit multiple proposals if there are multiple distinct components within a project that fit the qualifying criteria. Each proposal will be treated as a separate project, and will be evaluated and funded separately.

NOTE: New applications from FY18 will be accepted on fixed quarterly evaluation cycles. This change will focus the processing and evaluation efforts, allowing for faster processing and better communications. With this change, Applicants will receive regular updates on the application status and a decision within the 3-months evaluation cycle.

Eligibility

Qualifying Criteria
Companies must be either:

  1. a Financial Institution licensed, regulated, supervised or registered by MAS (refer to a list of regulated Financial Institutions here) ; or
  2. a technology or solution provider (including start-ups, professional services and consultancy firms) with at least 1 Financial Institution licensed, regulated, supervised or registered by MAS sponsoring the project(refer to a list of regulated Financial Institutions here). Project sponsors need not have a direct financial stake in the project, but must exhibit active engagement and commitment to see the project to completion.

Qualifying Projects
Proposed projects may be of the following two types, with varying level of support:

Type of Project

Project Details

Support

Investigative Project

Projects which will develop a novel concept of resolving industry-wide problems using technology or business process.

Up to 50% of qualifying costs for each project will be supported, up to a maximum of S$200,000*.

Technical Equivalence Trial

Trials which aim to definitively answer regulatory uncertainty about risks and benefits from replacing legacy processes with innovative ones. These trials should be rigorously designed and conducted without bias.

Up to 70% of qualifying costs for each project will be supported, up to a maximum of S$200,000.

* Some projects may qualify for up to 70% reimbursement.

Qualifying Costs
Funding support will be on a reimbursement basis, for the following expense items:

  • Manpower costs i.e., basic salaries plus employee’s CPF contribution, excluding employer’s CPF contribution, annual wage supplements, bonuses, allowances (fixed and variable), and overtime. The salaries of founders and direct owners of the applicants are specifically excluded.
  • Professional services costs, including consultancy, sub-contracting or prototyping costs by third-party locally-based companies/vendors
  • Equipment / software costs, including purchase price and costs related to commissioning and operation (e.g., delivery, installation, handling). Only project-related technical software costs are supported.
  • IP Rights – licensing and technology acquisition costs from non-related parties
  • Other Operating Expenditures (subject to specific approval), including project-related training by external parties, patent-related costs, and rental of specialized equipment or facilities.

Evaluation

Proposals are accepted and evaluated on quarterly cycles, and goes through the three evaluation stages:

  • Stage I – Eligibility Screening
    Proposals are assessed for eligibility based on the stated qualifying criteria.
  • Stage II – Evaluation by panel of industry experts
    Proposals are assessed for novelty, potential utility, and likelihood of success.
  • Stage III – Final Panel Evaluation
    Where necessary, applicants may be required to provide clarifying information to a final panel

 The application submission dates for the respective evaluation cycles are:

Evaluation Cycle

Application Submission

Q1 (Apr-Jun)

1-Mar to 31-Mar
Q2 (Jul-Sep) 1-Jun to 30-Jun
Q3 (Oct-Dec) 1-Sep to 30-Sep
Q4 (Jan-Mar) 1-Dec to 31-Dec

Apply

Interested companies will be required to submit an official application on the prescribed application form. Refer to the Project Proposal Outline here. Email a soft-copy of the application form and proposal to FinTech_Office@mas.gov.sg.

Links and Resources

S/N

Link

1

Factsheet 

2

Annex A - Project Proposal Outline 

3

Annex B - Frequently Asked Questions

4

Application Form

Last Modified on 30/04/2018