The Monetary Authority of Singapore (MAS) has announced three enhancements to its Fintech Regulatory Sandbox framework dubbed as Sandbox Plus and will take effect on 1 January 2022.
MAS launched the 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.
These enhancements include the expansion of eligibility criteria to include early adopters of technology innovation as 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.
MAS added that 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 will help meet the cashflow needs of Sandbox Plus applicants, and facilitate faster time-to-market, and enable applicants to be more market-ready when they graduate from the sandbox.
Additionally, eligible applicants will be enrolled in the Deal Fridays programme to help them access the external investor community, benefitting from the network, mentorship, and funding.
Sopnendu Mohanty
Sopnendu Mohanty, Chief Fintech Officer, MAS, said,
“Fintech is reshaping financial services at a rapid pace. Sandbox Plus reflects 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.”
