What Kind of Government Grant Can a Financial Services Business Get in Singapore?
Singapore is globally recognised as a financial hub, home to over 1,200 financial institutions that offer a wide range of services from banking and insurance to wealth management and fintech. To ensure this sector continues to thrive and innovate, the Singapore government offers a number of grants and support schemes tailored to the needs of financial services businesses. Whether you’re a traditional finance company or a fintech startup, understanding the available grants can help you leverage government support to scale, digitise, and future-proof your operations.
1. Productivity Solutions Grant (PSG)
The Productivity Solutions Grant (PSG) supports companies keen on adopting IT solutions and equipment to enhance business processes. For financial services companies, this includes accounting software, digital customer relationship management (CRM) systems, HR management tools, and cybersecurity solutions.
Key Benefits:
- Covers up to 50% of the cost
- Pre-approved solutions make the application process easier
- Ideal for firms looking to digitise operations
Example: A small insurance agency might use PSG to implement a secure cloud-based CRM system that streamlines client communication and policy tracking.
2. Enterprise Development Grant (EDG)
The Enterprise Development Grant (EDG) is a comprehensive grant aimed at supporting business transformation, innovation, and international expansion. Financial services companies can tap into EDG for projects in three core areas:
- Core Capabilities (e.g., strategy development, business process redesign)
- Innovation and Productivity (e.g., workflow automation, AI-based risk assessment tools)
- Market Access (e.g., setting up overseas operations)
Funding Support: Up to 50% of qualifying project costs for SMEs.
Example: A fintech company might receive EDG support for developing an AI-powered chatbot that enhances customer service by handling common queries automatically.
3. Financial Sector Technology and Innovation (FSTI) Scheme
Administered by the Monetary Authority of Singapore (MAS), the FSTI Scheme is specifically targeted at encouraging innovation in the financial sector. This scheme offers several grants under different tracks, such as:
- Proof-of-Concept (POC) Grant: Supports early-stage development of promising innovations.
- Innovation Labs Grant: Encourages the setup of dedicated innovation labs.
- Institution Project Grant: Supports institution-wide technology adoption and projects.
Funding Support: Varies by track, but can be significant especially for collaborative or large-scale innovation projects.
Example: A startup testing blockchain for cross-border payments may receive a POC grant to prototype their solution.
4. Digital Acceleration Grant (DAG)
Also overseen by MAS, the Digital Acceleration Grant helps smaller financial institutions and fintech firms adopt digital tools and platforms. It consists of two components:
- Institution Project Track: Supports customized solutions for business needs
- Industry Pilot Track: Focuses on joint projects benefiting the broader industry
Funding Support: Co-funding up to 80% of qualifying expenses, capped at SGD 120,000 for Institution Projects.
Example: A small wealth management firm might use DAG to implement digital onboarding tools that reduce paperwork and improve KYC compliance.
5. SkillsFuture Enterprise Credit (SFEC)
The SkillsFuture Enterprise Credit encourages employers to invest in enterprise transformation and employee capabilities. This is especially important in the financial sector, where upskilling is crucial for adapting to fintech trends.
Eligibility: Employers must have contributed at least S$750 Skills Development Levy in the qualifying period.
Funding Support: Additional 90% support on top of existing funding for eligible transformation and training programs, capped at S$10,000.
Example: A financial advisory firm could use SFEC to train staff in digital sales techniques or risk analysis using new financial software.
6. Startup SG Tech
For innovative fintech startups, the Startup SG Tech grant offers early-stage funding for the development of proprietary technology.
Two Phases:
- Proof-of-Concept (POC): Up to S$250,000
- Proof-of-Value (POV): Up to S$500,000
Criteria:
- Solutions must be proprietary and scalable
- Company must be less than 5 years old and 30% local shareholding
Example: A RegTech company building an AI tool to detect fraudulent transactions may receive this grant during the POC phase to test its feasibility.
7. Market Readiness Assistance (MRA) Grant
If you’re looking to expand abroad, the MRA Grant by Enterprise Singapore supports overseas market set-up, identification of business partners, and participation in trade fairs.
Funding Support: Up to 50% of eligible costs, capped at S$100,000 per company per new market.
Example: A local payment solutions provider expanding into Indonesia could apply for the MRA to support market research and localisation efforts.
Final Thoughts: Aligning Grants with Business Strategy
Choosing the right grant depends on your business stage, goals, and the type of financial services you provide. A traditional firm looking to go digital might benefit most from PSG and EDG, while a fintech startup may find the FSTI and Startup SG Tech grants more suitable.
Navigating the application process, understanding eligibility criteria, and aligning the project scope to the grant’s objectives can be complex.
Need Help Navigating Grants? Consult the Experts at GrantConsultant.sg
At GrantConsultant.sg, we specialise in helping financial services businesses in Singapore identify and apply for the most suitable government grants. Our team of experts ensures that your application stands the best chance of approval by aligning it closely with grant requirements and industry standards.
Contact us today to find out how we can help you fund your next stage of growth through strategic grant consulting.