A large number of tech-savvy startups are applying for Singapore’s first batch of digital banking licenses because SGP is trying to encourage the new wave of technological innovation.
Ride-hailing super app Grab and telecom giant Singtel have already applied for a banking license. There are many other fine techs in SGP which are about to apply such as FOMO Pay, MatchMove, Funding Societies, MaxFinx, Xfers, and oCap.
Zack Yang, the co-founder of FOMO Pay, said that what partner or which consortium will be selected, is yet not confirmed due to market competition that changes every week. He estimated that around 20 different consortia are involving at least 40 countries and they will meet the deadline for applying for the two full digital bank licenses and three wholesale digital licenses on offer.
As per Pengeluaran SGP, the country has started digital bank licenses after the tech giants like Google and Alibaba started offering full-service banking. SGP is hoping that digital banks will combine advanced technology and improved data analytics to reach underserved segments of the market which are different from existing banks.
SGP has currently 150 deposit-taking institutions with a total asset size of $2 trillion including full banks, wholesale banks, merchant banks, and finance companies. It has selected two new digital full banks to take deposits and provide banking services to retail and non-retail customers.
And three wholesale banks will take deposits and provide banking services to non-retail customers such as small to medium enterprises.