29 November 2021 Peiying Chua Heikes Financial Regulation

MAS Enhances FinTech Regulatory Sandbox

November 2021

The Monetary Authority of Singapore (“MAS”) has announced three enhancements to its Fintech Regulatory Sandbox framework to further catalyse financial innovation and Fintech adoption – namely by expanding the eligibility criteria to include early adopters of technology innovation, streamlining application with financial grant, and introducing the Deal Fridays programme, a platform for deal-making opportunities. 

The enhancements are part of Sandbox Plus, which takes effect on 1 January 2022. We set out below a summary of the key changes:

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.

Streamlined application with financial grant

  • First movers of technology innovation can concurrently apply to enter the Regulatory Sandbox and receive a financial grant, in a single application. Eligible applicants can obtain funding of up to S$500,000 at a 50% funding level. The grant will be disbursed over three payments upon meeting certain conditions, during and after the sandbox period. The financial grant is intended to 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.

Participation in Deal Fridays programme

  • Eligible applicants will be enrolled in the Deal Fridays programme, a platform for deal-making opportunities between start-ups and investors. These opportunities are driven by monthly events in the lead up to the Singapore FinTech Festival.