Singapore's central bank, the Monetary Authority of Singapore (MAS), is set to allocate S$220 million (US$173 million) to fast-track innovation within the financial technology sector, as announced by Deputy Prime Minister Gan Kim Yong.

This investment, distributed over a three-year period, is part of the newly unveiled fourth edition of the Financial Sector Technology and Innovation (FSTI) scheme. The initiative is designed to reinforce Singapore's status as a dynamic and competitive fintech hub.

The primary objectives of the scheme include the development of technology infrastructure to integrate new solutions into the financial sector, as well as bolstering talent development and attraction efforts, according to an official statement from MAS.

A key component of the plan is the co-funding of internship stipends to cultivate a "pipeline of young talent for Singapore's fintech ecosystem." The central bank aims to facilitate at least 1,000 fintech internship opportunities in the next three years, with Singaporean citizens eligible to participate.

Beyond talent, the initiative seeks to anchor and scale innovative activities within Singapore, with a particular emphasis on advancing frontier technologies.

Mr. Gan, who also serves as Minister for Trade and Industry and Chairman of MAS, stated that these combined efforts will empower financial institutions, fintech companies, and workers to innovate, scale up, and develop the capabilities necessary to seize emerging opportunities.

He further noted that the government has been actively consulting with the financial industry and fintech firms to identify gaps and requirements, with plans to continue engaging the sector to refine the scheme over time.

The original FSTI program was first introduced back in 2015, and since its launch, it has supported over 350 fintech projects. Mr. Gan highlighted that the initiative has been instrumental in fostering a robust ecosystem for both the fintech and financial industries.

He pointed out that Singapore is home to more than 1,800 fintech enterprises, many of which have expanded into regional markets and serve a global clientele. The sector itself provides employment for roughly 10,000 individuals.

Citing recent momentum, he mentioned that in 2025 alone, the fintech sector attracted close to S$3 billion in total investment. "I think the momentum will continue, and we hope that FSTI 4.0 will continue to provide that boost to the fintech industry," he said.

MANPOWER SUPPORT

The latest iteration, FSTI 4.0, will be rolled out through six distinct tracks covering areas such as institutional innovation, AI adoption, infrastructure, platforms, and talent development.

In addition to the internship stipend co-funding, MAS has launched a new FinTech Internship Portal, fintechinternships.sg, managed by the Singapore FinTech Association (SFA). This platform will connect fintech firms with students from Institutes of Higher Learning for internships spanning business, technology, and other functions.

Each internship, which can be full-time or part-time, must last at least three months and include defined learning outcomes. For each qualifying hire, MAS will support 80% of the monthly internship stipend, capped at S$1,000 per month, for up to 12 months. Participating firms can receive funding for up to 10 interns per calendar year.

Mr. Gan emphasized that building a talent pipeline is "particularly critical" in the emerging fintech industry. "Not only is it a new industry, it is also evolving very rapidly with the emergence of AI and frontier technologies," he stated, adding that investing in people's skills and knowledge is vital for the sector's growth and for positioning them to seize future opportunities.

The fintech sector has been grappling with a talent crunch and high attrition rates. A 2025 talent report from SFA indicated "significant shortages" in areas like AI, data science, cybersecurity, and cloud architecture, with firms citing protracted hiring times, high compensation expectations, and high turnover due to limited career development or pay.

FRONTIER TECH

Beyond manpower, other tracks in the scheme include the Institution Project Track, which supports Singapore-based financial institutions and fintech firms in developing and deploying innovative solutions. MAS will focus on frontier technologies, including AI, distributed ledger technology, and quantum technology. Projects must demonstrate significant business impact, technical feasibility, and innovativeness.

The AI Pathfinder track is designed to accelerate the adoption of market-tested AI solutions listed on PathFin.ai and to drive sector-wide AI usage across financial services.

The infrastructure and platform track supports industry-wide projects that boost efficiency, productivity, and innovation. Concurrently, the Centre of Excellence track aims to anchor high-value functions of financial institutions and fintech firms in Singapore. It will consolidate specialized talent and expertise while supporting the growth of emerging tech like AI, quantum computing, and digital assets. MAS will offer up to 50% funding support on manpower expenses for qualifying roles filled by Singapore citizens and 25% for non-citizens, including permanent residents, over a 24-month period.

The MAS FinTech Awards track seeks to elevate Singapore's global profile as a fintech hub through events like the Singapore FinTech Festival (SFF) FinTech Excellence Awards and the Global FinTech Hackcelerator (GFH). This annual competition challenges global start-ups to develop market-ready solutions for industry problem statements.

A new enhancement, the GFH Scale-up Grant, will provide eligible finalists with follow-on funding of up to S$500,000 to help them validate their solutions post-competition, attract private investment, and scale their presence in Singapore. Since the scheme's inception, GFH finalists have raised over S$3.8 billion, and more than 30 Centres of Excellence have been established.

BUILDING A FINTECH ECOSYSTEM

The previous version, FSTI 3.0, involved a S$150 million commitment over three years from 2023 to 2026, supporting Centres of Excellence and introducing new tracks on environmental, social, and governance (ESG) fintech and quantum technology. It also backed advanced capability development in AI, data analytics, and regulatory technology.

The second iteration of FSTI committed S$250 million from 2020 to 2023, broadening digital adoption across the financial sector and providing crucial support during the COVID-19 pandemic by enabling smaller institutions to pivot to remote work. The first iteration, from 2015 to 2020, saw a S$225 million commitment, which established the foundational ecosystem, launching tracks like Proof-of-Concept and Innovation Labs to kickstart early-stage innovation.

When asked about competing with regional hubs like Hong Kong, Mr. Gan remarked that the financial industry is not a "zero-sum game." He explained, "As we get better, Hong Kong and other financial centres will also get better. And as they get better, we want to make sure that we get even better. FSTI 4.0 will help to spur innovation in the local financial sector and fintech sector, keeping Singapore competitive and ensuring that many of the innovations and solutions will also benefit the financial industries in the region."

FINTECH INDUSTRY WELCOMES SCHEME

Industry players have welcomed the latest iteration, noting it shifts focus from just supporting innovation to helping fintech firms commercialize and scale their solutions. Holly Fang, President of the Singapore FinTech Association, said FSTI 4.0 builds on the foundation of FSTI 3.0 with greater emphasis on adoption and commercialisation.

"I think FSTI 4.0 provides that end-to-end view and support across different stages of that journey: from innovation, to adoption, to supporting promising fintechs as they validate and scale their businesses. For Singapore to remain competitive and lead as a global fintech hub, we need to be both a place where new solutions are built, and a market where they can be deployed and scaled," she said.

Caecilia Chu, Co-founder and CEO of multi-currency payment platform YouTrip, stated the refreshed scheme arrives at a pivotal time given the "relatively muted" venture capital and growth capital landscape. She added that the dedicated AI Pathfinder Track and enhanced grants will encourage businesses to be bolder in developing new AI products that benefit Singapore and the wider region.

Kelvin Teo, Co-founder and director of digital financing platform Funding Societies, said the latest scheme lowers the cost and risk of experimenting with and adopting innovation and AI solutions. "For smaller firms, that cost can be prohibitive. For larger firms, co-funding removes avoidable friction in getting budget approval internally," he said, adding that FSTI 4.0 provides continuity for technology projects that typically span multiple phases.

On the manpower track, Mr. Teo said the focus on internships is well-timed and meaningful for entry-level talent. However, he noted the bigger challenge is attracting mid-career and senior-level professionals, as fintech firms compete with banks and global tech companies for experienced hires. "This gap is better addressed by meaningful mid-career grants for locals, and greater certainty on the long-term settlement pathway for experienced foreign talent with families," he added.