When it comes to fintech, there’s no doubt that Singapore plays a significant role in the big leagues. The Monetary Authority of Singapore (MAS) recently released its latest annual report, and within its pages are fintech and digital finance initiatives that will shape the country’s (and in certain moves, the region’s) financial future.
From testing quantum-grade security to managing crypto exposure, the report outlines developments across every layer of Singapore’s financial and fintech system.
Whether you’re a fintech founder, compliance lead, or just a curious observer, here are notable fintech developments from the MAS Annual Report for 2024/2025.
#1 Robust and Resilient Financial Centre
In this segment of the annual report, MAS highlights efforts undertaken to ensure technology and cyber resilience, banking and insurance sectors, and international engagements.
Strengthening GenAI Cyber Risk Education
In July 2024, MAS issued an information paper to help financial institutions better understand the cyber risks linked to GenAI, including risk implications and mitigation measures.
Safeguarding quantum computing from cyber threats
Next, to guard against quantum-related threats, MAS signed an MoU with DBS, HSBC, OCBC, UOB, and tech companies SPTel and SpeQtral to explore the use of Quantum Key Distribution (QKD) in financial services. The aim is to enhance the protection of cryptographic key exchanges and address future cybersecurity risks that may be posed by quantum computing.
AI Oversight and Crypto Capital on MAS’ Radar
MAS conducted a thematic review on how certain banks are managing risks tied to AI and GenAI. MAS then published an information paper sharing best practices on how financial institutions can manage and ensure proper oversight when developing, testing, and using GenAI and AI models.
Next, MAS has also launched a public consultation on the prudential treatment of cryptoasset and cryptoliability exposures, proposing a risk-based approach that requires higher capital buffers by banks for riskier crypto holdings.
Shaping Global Fintech Through Strategic Alliances
Throughout 2024, MAS deepened international cooperation through dialogues with the UK, Malaysia, China and Switzerland, focusing on sustainable finance, fintech, cross-border payments, and AI. These efforts, along with its active participation in global forums like the International Monetary Fund and the Network for Greening the Financial System reinforce Singapore’s role as a collaborative and forward-looking financial hub.
#2 Responsible and Trusted Financial Centre
In this specific segment, MAS has rolled out several initiatives for countering online scams.
Firstly, in July 2024, MAS and the Association of Banks in Singapore (ABS) announced that major retail banks would phase out One-Time Passwords (OTPs) for account logins among digital token users, making unauthorised account access harder for scammers.
Then, the Singpass Face Verification (SFV) for digital token setup was initiated to prevent scammers from hijacking a customer’s digital token using stolen credentials, ensuring only the rightful owner can activate it.
The Shared Responsibility Framework for Financial Institutions and Telcos
To further reinforce accountability, MAS and the Infocomm Media Development Authority (IMDA) launched the Shared Responsibility Framework (SRF) in October 2024, setting out clear expectations for banks and telcos to prevent phishing scams. This provides affected scam victims with payouts when lapses occur.
E-wallet providers have also been brought into the fold through the Financial Industry Disputes Resolution Centre (FIDReC), giving consumers access to independent redress channels beyond SRF-specific cases.
Joint Media Advisories to Keep the Public Informed on Scam Variants
Meanwhile, MAS and the Singapore Police Force continue to issue regular alerts about evolving scam tactics, from impersonation of government officials and financial institutions to digital wallet fraud.
#3 Innovative and Inclusive Financial Centre
Under this segment, MAS has set funding, payment innovations and initiatives related to digital assets and asset tokenisation, among others.
Building Financial Capabilities in Quantum and AI Segments
In July 2024, MAS committed an additional S$100 million under the Financial Sector Technology and Innovation Grant Scheme (FSTI 3.0) to accelerate the development and adoption of quantum and AI technologies in financial services.
This will help financial institutions deepen their capabilities, from quantum-safe security infrastructure to advanced AI applications.
Electronic Deferred Payments to Move from Cheques by 2026
To support the shift away from cheques, the Association of Banks in Singapore (ABS) plans to roll out two new payment solutions, Electronic Deferred Payments (EDP) and EDP+, by mid-2025. These alternatives are designed for post-dated payments and transactions that require higher certainty of settlement.
MAS and the banks have extended the corporate cheque phase-out deadline to 31 December 2026, giving businesses more time to transition.
Strengthening Governance for Singapore’s National Payment Schemes
MAS and ABS will establish a new entity to oversee and govern the country’s key national payment schemes, such as FAST, GIRO, PayNow, and SGQR, paving the way for their next phase of growth.
The new entity will improve coordination and decision-making across schemes, helping financial institutions and payment providers tap into global payment opportunities and drive innovation. It will also work closely with MAS to shape Singapore’s national payments strategy and ensure a secure, efficient, and forward-looking payments ecosystem.
Scaling Asset Tokenisation for Financial Services
MAS ramped up efforts to scale asset tokenisation across financial services by partnering with global industry bodies and financial institutions to drive common standards in key areas such as fixed income, foreign exchange, and asset and wealth management.
In collaboration with international players, MAS also completed the first phase of the Global Layer One (GL1) initiative, and next intends to develop standards, market practices, and governance principles for foundational digital infrastructure supporting tokenised assets.
MAS has also announced plans to elevate tokenisation in financial services, including building commercial networks to deepen the liquidity of tokenised assets.
#4 Greening the Financial System
MAS integrates environmental and climate considerations across its core functions in this segment. This includes working with financial institutions to strengthen climate risk resilience, promoting sustainable finance to support Asia’s green transition, factoring climate risks into its reserve management strategies, and reducing its own carbon footprint in line with national climate goals.
Financing Asia’s Transition Partnership (FAST-P)
One key development is FAST-P, a blended finance initiative designed to mobilise up to US$5 billion to de-risk and fund transition and marginally bankable green projects across Asia.
The programme brings together multilateral development banks, sovereign partners, philanthropic organisations, and private sector players to accelerate decarbonisation, close the region’s green financing gap, and support sustainable economic growth and climate resilience.
The Singapore Government has committed up to US$500 million in concessional capital, matching dollar-for-dollar contributions from other partners.
FAST-P comprises three targeted partnerships: the Energy Transition Acceleration Finance (ETAF) partnership, the Green Investments Partnership (GIP), and the Industrial Transformation Programme (ITP), each with distinct focus areas and stakeholders.
Project Viridis Sets the Stage for Climate Risk Monitoring in Finance
On 12 June 2024, the Bank for International Settlements (BIS) Innovation Hub and MAS unveiled Project Viridis, a blueprint for a climate risk platform designed to support financial authorities.
The platform aims to integrate regulatory and climate data, enabling more effective identification, monitoring, and management of climate-related risks within the financial system.
Scaling Innovation, Security and Financial Readiness
MAS has launched the Pathfinder programme to support financial institutions in the early stages of AI adoption. As the first of four planned initiatives, Pathfinder connects participating institutions with peers to exchange practical use cases, share implementation insights, and learn from real-world experiences.
The remaining three initiatives will focus on building strong AI capabilities within Singapore, developing and scaling use cases across regional markets, and preparing the financial sector workforce for roles transformed by AI.
Next, in parallel with innovation, MAS continues to drive home the importance of digital trust. As part of Singapore’s ongoing fight against scams, MAS Managing Director Chia Der Jiun emphasised that the country must prioritise security over convenience.
He added that stronger safeguards may introduce some friction for users, but it is a necessary trade-off to protect the public from sophisticated scam threats.
Taken together, the MAS Annual Report for 2024/2025 efforts reflect MAS’ broader mission: to build a future-ready financial system that is innovative, resilient, inclusive, and above all, trusted.
Featured image: Edited by Fintech News Singapore, based on image by MAS
