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Many regulators talk about supporting innovation, and the Monetary Authority of Singapore (MAS) has put its money where its mouth is, committing S$42 million (C$39 million) to industry innovation.

The MAS, which is both Singapore’s central bank and a regulator, announced a new scheme to fund the development of regulatory technology (regtech) solutions, along with added financing for its existing digital acceleration grant (DAG) program.

The new regtech grant scheme “aims to promote the adoption and integration of technology solutions in the risk management and compliance functions,” the MAS said in a release.

The DAG program was launched last April to help smaller financial firms and fintechs adopt digital solutions to deal with the effects of Covid-19.

The MAS reported that it received over 1,100 applications to the program from the industry. As a result, it’s providing an additional S$30 million (C$28 million) in funding to the initiative “to encourage the industry to adopt digital solutions that enhance productivity, cyber security and operational efficiency.”

It’s also extending eligibility to insurance firms.

“MAS remains committed to the digital transformation of the Singapore financial sector,” said Sopnendu Mohanty, chief fintech officer at the MAS.

“We expect the regtech ecosystem to flourish with widespread use of innovative solutions to aid risk management and compliance,” Mohanty said. “The digital acceleration grant has enabled the smaller [financial institutions] and fintech firms to adapt to the challenges in the past year, and we will continue to support these firms as they accelerate their digital transformation journey.”