Razer Fintech applies for Singapore digital banking license

Razer Fintech, the fintech arm of gaming and lifestyle company Razer, announced it has submitted an application for a digital full bank license in Singapore, focusing its bid on the underserved youth and millennials segment.

Razer CEO Min-Liang Tan / Photo credit: Razer

If the company successfully obtains a license from the Monetary Authority of Singapore, it will extend its current fintech offerings to digital banking services by building Razer Youth Bank, the world’s first “global youth bank” in the city-state, the company said in a statement.

Razer aims to create a financial well-being companion for the youth that provides fair and transparent product offerings and personalized banking experiences. In addition, the bank also plans to give budding entrepreneurs and small and micro enterprises access capital to grow their businesses.

The company also plans to collaborate with industry leaders and lifestyle partners to provide innovative banking solutions for its target market.

To establish the bank, Razer has formed a consortium of strategic partners which includes Sheng Siong, insurance firm FWD, LinkSure Global, Singapore-based VC firm Insignia Ventures Partners, and wholesale car marketplace Carro. Razer Fintech will be taking up a 60% majority stake in the bank, while its partners will take the remaining equity interest.

The company has also tapped partners such as co-working startup JustCo, cash management network SoCash, global payments giant Visa, and an undisclosed airline partner, among others, to create services and products for Razer Youth Bank.

See also: Razer’s payments platform is profitable a year from launch, has global ambitions

Earlier this week, Singapore-based ride-hailing giant Grab and local communications group Singtel announced that they are forming their own consortium to apply for a digital full bank license. Grab will have a 60% stake in the consortium entity, while Singtel will hold the remaining 40%.

The two firms plan to customize the services of their digital bank to meet the needs of digital-first consumers and small and medium-sized enterprises.

Another consortium, which includes OCBC, marine giant Keppel, VC firm Vertex Ventures, and P2P lending platform Validus, was also reported to be pulling out of the digital banking race in Singapore despite the group’s initial interest.

The move was believed to be due to an ongoing strategic review of Keppel’s operations amid a takeover through a partial offer by Temasek, according to the Business Times.