Singapore Telecommunications Ltd (Singtel) is partnering with Southeast Asian passenger transport company Grab Holdings Inc to use for a full digital banking license in Singapore, each corporations said on Monday.
In a joint statement, the pair said they might form a consortium, with Grab owning 60% and Singtel owning the remaining, to supply a wide range of digital banking services.
The move comes amid the most important liberalization of Singapore’s banking sector in twenty years, aimed toward allowing online-only banks to operate at a lower cost and thus offer different services than traditional lenders reminiscent of DBS Group Holdings Ltd and Oversea -Chinese Banking Corp Ltd. .
Singtel, the region’s largest telecommunications operator, and Grab are a number of the best-known names in Southeast Asia and each corporations are expanding beyond their traditional businesses.
Singtel is expanding into areas reminiscent of mobile wallets and online gaming, while Grab has expanded into food delivery and a spread of monetary services.
“The natural next step is to build a truly customer-centric digital bank that will provide a variety of banking and financial services that are accessible, transparent and affordable,” Reuben Lai, senior managing director at Grab Financial Group, said in an announcement.
The city-state’s central bank is to issue a maximum of two full digital bank licenses and three wholesale bank licenses. Full digital banks can accept deposits and offer services to each retail and non-retail customers, but should be run by a Singapore-based company.
Wholesale banks will mainly serve small and medium-sized enterprises.
Source : Reuters | Asia News Channel
