China-based fintech operator Ant Financial has announced that it has applied for a digital wholesale banking license in Singapore, following the waves of unicorns trying to ahead each other in obtaining the digital banking license form Monetary Authority of Singapore (MAS).
The same week, Tech In Asia reports, also saw gaming startup Razer and ride-hailing company Grab applying for full banking licences.
An Ant Financial spokesperson is quoted saying to South China Morning Post: “In line with our commitment to promoting financial inclusion globally, we have submitted an application to the MAS for a digital wholesale banking license. We look forward to contributing to the development of the digital banking landscape in Singapore.”
Last year in June, the MAS revealed its plan to grant as many as five virtual bank licenses to boost competition and innovation. As for which company will win the bid, MAS is expected to announce the successful applicants by mid-2020.
Two applicants with a capital of S$1.5 billion (US$1.1 billion) will be granted full bank licences, allowing the applicant to provide a range of banking services to retail and non-retail customers.
The three remaining applicants will be granted wholesale licences, requiring a capital of S$100 million (US$74 million), allowing applicants to provide services to small and medium enterprises (SMEs) as well as other non-retail customer segments.
Also Read: Razer Fintech leads consortium for youth-targeted bank as part of digital banking license bid
Earlier last year, Hong Kong presented a similar move by granting licences to companies, including Ant Financial and Tencent to open up its banking industry.
In a report jointly done by Bain & Co, Google and Temasek, Southeast Asia’s digital lending market is predicted to grow from US$23 billion in 2019 to US$110 billion by 2025, representing a 29 per cent compound annual growth rate.
Before Ant Financial, gaming startup Razer Fintech had applied for a digital banking licence on Thursday, stating its mission in targeting underserved youth market with its Razer Youth Bank. On Monday, Grab Holdings and Singapore Telecommunications announced their joint bid that has 60 per cent equity held by Grab.
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