The much anticipated digital banking industry takes another step closer to reality with the Monetary Authority of Singapore revealing the rules to the licenses and now accepting applications.
The regulator will take applications until December 31, 2019, following up on MAS chairman and senior minister, Tharman Shanmugaratnam’s announcement to issue up to two digital full bank licenses and three digital wholesale bank licenses.
Digital full banks will be allowed to take deposits and provide various financial services to retail and non-retail segments whereas digital wholesale banks will be limited to serving SME or other non-retail segments.
How to Pass?
In addition to being Singapore-based and controlled by a Singaporean, prerequisites for approval include business track record, fit and proper shareholders, directors and management and capital commitment.
Applicants who pass these requirements will then be eligible and further assessed based on three areas: value proposition, business sustainability of digital bank and contributions to Singapore’s financial center.
The MAS expects to announce the successful license recipients in mid-2020 and allow operations to launch by mid-2021.
