The Monetary Authority of Singapore (MAS) announced it has received a total of 21 applications for digital bank licenses at the close of applications at the end of 2019.
MAS headquarters in central Singapore / Photo credit: Tech in Asia
The financial regulatory authority said the applications comprise of seven bids for digital full bank licenses and 14 for digital wholesale bank licenses. MAS said the licenses have attracted interest from a diverse group of applicants, including ecommerce companies, tech and telecommunications businesses, fintech firms, and financial institutions.
“The majority of applicants are consortiums, with entities seeking to combine their individual strengths to enhance the digital bank’s value proposition,” MAS said in a statement.
Successful applications are set to be announced in June, with the new digital banks expected to start operations by mid-2021.
Though the regulatory body did not name any of the applicants in its announcement, those who have so far publicly revealed their bids include:
Grab and Singtel
The regional ride-hailing giant and Singapore telco announced that they have formed a consortium to apply for a digital full bank license in the city-state. Grab will have a 60% stake in the consortium entity, while Singtel will hold a 40% stake.
According to a statement, the consortium’s digital bank will cater to the financial needs of digital-first consumers as well as SMEs that face a lack of access to credit.
Razer Fintech-led group
The fintech arm of gaming and lifestyle company Razer announced its application for a digital full bank license late last week as it looks to extend its current fintech offerings to digital banking services by building a “global youth bank” in Singapore.
It 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.
With Razer Youth Bank, Razer aims to create a financial well-being companion for the youth that provides fair and transparent product offerings and personalized banking experiences. The bank also looks to give budding entrepreneurs and small and micro enterprises more access to growth capital.
Ant Financial
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