Grab is looking to enter Singapore's banking space as regulators are still working on the rules governing a virtual banking regime.
Grab, Southeast Asia’s Unicorn, is considering to apply for a banking license as regulators in the city-state are still mulling over regulations that allow online-only banks, «Reuters» reported, quoting four people with knowledge of the process.
Singapore-headquartered Grab’s interest in the banking space is not surprising, observers said. The company's financial arm Grab Financial, headed by Reuben Lai, aims for the division to be the «ASEAN wallet of choice», as reported by finews.asia. It is close to hiring a consultancy to advise it on its potential.
Shaking Up Banking
Singapore's regulators are in the process of setting the framework for virtual banking licenses, after Hong Kong issued virtual banking licenses this year. A potential entry by Grab or other fintechs would mark the biggest shake-up in country's banking scene as the market has been dominated by three local banks - DBS Group Holdings, Oversea-Chinese Banking Corp and United Overseas Bank.
The MAS could make a decision in the next couple of months on whether to admit digital-only banks with non-bank parentage, as well as eligibility applicants, the people quoted in Reuters said. The city-state’s banking regulator is likely to issue only two to three licenses in the first phase, two of the people said.
