After delaying its assessment due to the pandemic, the Monetary Authority of Singapore has announced four successful digital bank applicants.
A consortium comprising Grab and Singtel, and an entity wholly owned by Sea were awarded digital full bank (DFB) licenses, according to a MAS announcement Friday evening.
And winners of the wholesale bank (DWB) licenses include a consortium comprising Greenland Financial Holdings, Linklogis Hong Kong, and Beijing Co-operative Equity Investment Fund Management, and an entity wholly owned by Ant Group.
New Digital Banks
They were chosen from a shortlist of 14 names. Among those that missed the cut for DFBs were a consortium led by e-gaming giant Razer, a consortium led by V3 Group, and a Singapura Finance-Matchmove partnership. MAS previously said that it would award banking licenses for up to two DFBs and up to three DWBs.
Digital full banks are allowed to take deposits from retail customers, while digital wholesale banks can cater to the monetary needs of small and medium-sized enterprises (SMEs). MAS said it expects the new digital banks to commence operations from early 2022.
Strong Slate
The successful applicants must meet all relevant prudential requirements and licensing pre-conditions before MAS grants them their respective banking licenses, MAS said in the statement.
«We expect them to thrive alongside the incumbent banks and raise the industry’s bar in delivering quality financial services, particularly for currently underserved businesses and individuals. They will further strengthen Singapore’s financial sector for the digital economy of the future,» Ravi Menon, MAS managing director, said about the license recipients.
