The relationship between the incumbents and insurgents has been sometimes competitive but often collaborative – and both have been good for the ecosystem. We adopted a multi-pronged strategy to build what is now regarded by many as one of the most vibrant FinTech ecosystems in the world. First, a conducive regulatory approach that facilitates innovation while managing risks: simplifying rules; selectively easing licensing criteria; providing guidance on new areas like cloud computing, robo-advisers, and digital tokens; adopting activity-based regulation right-sized to the risks posed, as in our Payment 1/5  BIS central bankers' speeches  Services Act; and allowing experimentation through regulatory sandboxes. Second, the digital infrastructure necessary for the adoption and proliferation of new technologies: a 24/7, real-time electronic payment system; a national digital identity and trusted data architecture that allows seamless online authentication and financial transactions; digital platforms to connect businesses, financial institutions, and FinTech firms: matching buyers and sellers through, for example, Business sans Borders; and matching problem statements and solutions through, for example, the API Exchange (or APIX); cross-border data and digital connectivity agreements and frameworks; and Project Ubin - a blockchain based prototype platform for cross-border payment and settlement in different currencies on the same network – faster and cheaper than conventional cross-border payment channels.
MAS has funded 23 AIDA projects and published 5 requests-for-proposals on topics such as Quantum Computing and Explainable AI. To promote the responsible use of AI and data analytics, MAS and the industry cocreated the FEAT principles – for fairness, ethics, accountability, and transparency. Perhaps the most visible payoff for the investment in technology is in how well the industry has responded the COVID-19 crisis and been able to continue serving customers. Imagine if there was no retail electronic payment system or infrastructure for digital banking or buying insurance online or trading from home …. how would we have coped with circuit breakers and lockdowns? If the financial industry had not built up its digital capabilities, it would not have been able to continue operating without disruption, let alone grow by more than 5% during the first half of this year when the overall economy contracted by 6.7%. But we are still only about half-way along our journey to becoming a Smart Financial Centre. COVID-19 has shown that the world is changing in ways we may have never 3/5  BIS central bankers' speeches  imagined. The pace of digital transformation will only accelerate. Our work is not done yet. We will announce at the Singapore FinTech Festival in December more of our plans and initiatives for the next stage of our journey. But let me share with you here what we are willing to commit by way of funding. Of the $ million committed in 2015 for FSTI, we have utilised half the amount.