Of the 21 digital bank applications received by the Monetary Authority of Singapore, 14 have made it to the next stage of assessment.
This includes five digital full bank (DFB) applicants and nine digital wholesale bank (DWB) applicants, the MAS said in an issued statement.
In the next stage, the 14 remaining applicants will be asked to present their proposals via virtual meetings and the next shortlist will be based on three factors: «value proposition and business model, incorporating the innovative use of technology; ability to manage a prudent and sustainable digital banking business; and growth prospects and other contributions to Singapore’s financial center.»
Coronavirus Impact
After delaying digital bank applicants’ assessment due to the pandemic, the MAS has resumed the licensing process but the virus continues to play a role in the launch. In light of these circumstances, the MAS is now asking all eligible applicants to «review the business plans and assumptions underpinning their financial projections, including sources of funding, and provide an independent review of these assumptions».
The MAS does not expect the additional request to affects its timeline and aims to award digital bank licenses by the end of the year, as planned.
Meanwhile, rival financial hub Hong Kong recently welcomed its second digital bank to the market, Xiaomi-backed AirStar Bank, joining ZA Bank which launched in March this year.
