OCBC is said to be shopping around for potential partners ahead of the introduction of virtual bank licenses in Singapore.
OCBC, Singapore's second-largest bank, is said to be in talks with companies including Singtel over possible partnerships relating to the upcoming virtual bank regime.
The bank, the only one among Singapore's big three without a dedicated digital bank, would take a minority stake in a virtual banking joint venture, and use such partnerships to tap on new customers and markets, «The Business Times» reported without citing sources as discussions are ongoing.
Instead of going head-on with telcos and technology firms in the payments and lending space, one way could be to partner them to leverage their wider user base and wealth of customer data. This is the approach Standard Chartered took in Hong Kong in partnering telco PCCW to build a new virtual bank.
«We are open to forging new partnerships and ventures that allow us to serve new segments and new markets,» Pranav Seth, head of digital and innovation, OCBC, said to the newspaper, without commenting on talks about the virtual bank licensing regime.
Singapore's Digital Bank Regime
In June 2019, the Monetary Authority of Singapore (MAS) said it was planning to issue up to five digital bank licences, comprising up to two digital full bank licenses and up to three digital wholesale bank licenses, following in the footsteps of Hong Kong, which opened the doors to virtual banks in March.
Applications for the digital full-bank licenses are open to companies headquartered and controlled by Singaporeans. Foreign companies can apply for these full-bank licenses if they form a joint venture with a Singapore company. MAS previously said it would issue conditions for licenses and open applications in August.
