According to an article in the Business Times, the Grab-Singtel consortium and the e-commerce conglomerate SEA have just received the full digital banking license granted by the Monetary Authority of Singapore (MAS).
Singapore is taking a big step towards fintech with the opening of digital banking license applications by the Monetary Authority of Singapore (MAS). This will allow non-banks to enter the market for the first time and serve consumers and companies.
Announced in June 2019, MAS issues a total of five licenses: two digital full banking licenses that licensees allow Serving private customers and making depositsand three digital wholesale banking licenses for SMB and non-retail segments.
Shopee CCO Zhou Junjie
Both Grab-Singtel and SEA, the parent company of the popular e-commerce platform Shopee, must meet all license requirements before they can receive the full digital banking license.
With the new digital banking license, they can now offer private customers services such as Account openings, insoles, as well as Debit and credit cards.
Full digital banks can also serve Corporate banking.
According to MAS, the new digital banks are expected to start operating from 2022.
Ravi Menon, Managing Director of MAS, added in a statement: "MAS used a rigorous, performance-based process to select a strong group of digital banks."
“We expect them to thrive alongside incumbent banks and raise the industry bar for delivering quality financial services, especially to currently underserved businesses and individuals. They will further strengthen Singapore's financial sector for the digital economy of the future. "
Anthony Tan, Group CEO and Co-Founder of Grab, said they "are honored to take this opportunity to build Singapore's next-generation digital bank and provide access to easy-to-understand and relevant financial services."
"With Grab and Singtel's combined experience in meeting the everyday needs of Singaporeans, as well as our extensive technical expertise and data-driven insights, the digital bank will further our goal of empowering more people to better control their money and achieve better profitability results for themselves, their businesses and families, ”added Anthony.
Shee Tse Koon, Country Head of DBS Bank in Singapore, spoke about the new entrants in the digital banking sector:
“We congratulate the successful applicants and welcome them to our world in which digital banking is already a reality. We believe that the new entrants will spur us all on to get better results and we will continue to focus on making banking more intuitive and invisible so that our customers can live more and do less banking. "