Inside Singapore's digital banking licence rush

As many as 21 suitors have lined up for a digital bank licence in Singapore, despite just 2% of its 5.9 million people being unbanked. But not many bidders may have the expertise to run a digital bank in a heavily regulated market

Singapore is the first country in Southeast Asia to dive into the digital banking revolution

Companies such as Grab, Razer, and SEA have bid for a digital bank licence either as solo players or multi-member consortia

There are fundamental concerns around the viability of these new licences and the groups that have bid for them

The 21 applicants are looking beyond Singapore’s shores, as Southeast Asia begins to warm up to the idea of digital banks.

A massage-chair business. A utility provider. A ride-hailing company. A maker of high-end PC gaming equipment. If you live in Singapore, one of these businesses could be your bank before the end of this decade. Tech majors including Grab (the region’s ride-hailing leader that bought out competitor Uber’s local business in 2018), New York Stock Exchange-listed games and e-commerce firm Sea, and gaming hardware manufacturer Razer, are among 21 applicants to throw their hats into the ring for a digital bank licence in Singapore.

Digital banking—the concept of deconstructing the high-street bank in today’s always-online, app-based world—has captured the attention of consumers and the wallets of investors around the globe.

AUTHOR

Benjamin Cher

Based in Singapore, Ben covers news and stories from the hub of Southeast Asia. He covers the intersection of technology and business, and how it affects Singapore and Southeast Asia. Ben was previously a reporter at The Edge Singapore.

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