The Monetary Authority of Singapore (MAS) today announced three enhancements to its FinTech Regulatory Sandbox framework to further catalyse financial innovation and FinTech adoption.
MAS launched the FinTech Regulatory Sandbox in 2016 to encourage and enable experimentation of technology innovation to deliver financial products and services. The Regulatory Sandbox, which is fully bespoke, was enhanced with Sandbox Express in 2019 to provide firms with a faster option for market testing in pre-defined environments.
With Sandbox Plus, MAS will make three enhancements to provide more effective one-stop assistance for firms looking to introduce innovative products and services that are regulated by MAS. Sandbox Plus will take effect on 1 January 2022. These enhancements include:
a. Expansion of eligibility criteria to include early adopters of technology innovation. Currently, a company is eligible for sandbox only if no similar implementations were observed in Singapore. By expanding support beyond first movers to early adopters, Sandbox Plus aims to provide a more conducive environment for new technology innovations to gain broader traction in Singapore, and provide more options to consumers and businesses.
b. Streamlined application with financial grant. First movers of technology innovation can concurrently apply to enter the Regulatory Sandbox and receive a financial grant1, in a single application. Eligible applicants can obtain funding of up to S$500,000 at a 50% funding level 2. The financial grant will help meet the cashflow needs of Sandbox Plus applicants, and allow them to focus resources on technology innovation and market development even while they are still in the Regulatory Sandbox. This will facilitate faster time-to-market, and enable applicants to be more market-ready when they graduate from the Regulatory Sandbox.
c. Participation in Deal Fridays. Eligible applicants will be enrolled in the Deal Fridays programme – a platform for deal-making opportunities.The programme will help sandbox companies access the external investor community, to benefit from the network, mentorship, and funding.
4 Mr Sopnendu Mohanty, Chief FinTech Officer, MAS, said, “FinTech is reshaping financial services at a rapid pace. Sandbox Plusreflects MAS’ ongoing commitment to support promising technology innovation to take root in Singapore by providing innovators with more effective one-stop support. We hope this will further catalyse new business models with innovative technology in aspiring financial institutions, bringing greater benefits to consumers and the industry.”
5 For more information on Sandbox Plus, please visit the MAS FinTech Regulatory
Sandbox at https://www.mas.gov.sg/development/fintech/regulatory-sandbox.