Southeast Asia ride-hailing giant Grab and Singapore communications group Singtel are forming a consortium to apply for a digital full bank license in Singapore.
Grab will have a 60% stake in the consortium entity, while Singtel will hold a 40% stake, according to a statement.
Photo credit: Grab
The digital bank will cater to the financial needs of digital-first consumers, who are seeking more convenient and more personalized financial services, as well as small and medium-sized enterprises that face a lack of access to credit.
Grab and Singtel are already providing their financial services through GrabPay and GrabInsure, and Dash and VIA, respectively.
Grab introduced GrabPay wallet in 2016 and launched its financial joint venture, Grab Financial Services Asia, last year with Japanese consumer financing firm Credit Saison.
“In the past two years, we have launched and scaled financial services such as e-money, lending, and insurance distribution into Southeast Asia’s largest fintech ecosystem. The natural next step is to build a truly customer-centric digital bank that will deliver a variety of banking and financial services that are accessible, transparent, and affordable,” said Reuben Lai, senior managing director of Grab Financial Group.
Meanwhile, Indonesia’s Gojek, Grab’s biggest rival in Southeast Asia, will reportedly spin out its financial arm into an independent entity called Digital Katalis.
See also: Singapore’s digital bank aspirants may face an uphill battle towards profitability
The Monetary Authority of Singapore announced in June that it will issue up to five digital bank licenses, which will allow entities, including non-bank players, to conduct digital banking businesses in Singapore.
Editing by Charmaine de Lazo
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