Four digital banks will get full bank licenses in Singapore in early 2022.

As The Straits Times reports, the Monetary Authority of Singapore (MAS) said it will award digital full bank licenses to the Grab-Singtel consortium and tech giant Sea, to Ant Group, as well as to a consortium comprising three other companies.

“This is a first and highly anticipated move for the city-state that aims to liberalize the financial industry. Like traditional banks, these players will provide retail customers with services such as opening accounts, deposits as well as issuing debit and credit cards.

However, digital banks will not have a physical presence and all banking services will be done online. This is different from traditional banks, which offer some banking services via the Internet or mobile apps. Digital full banks can also serve corporate customers,” The Straits Times writes.

In total, 21 applications to obtain digital full bank licenses have been issued. MAS said in a statement that the successful applicants must meet all relevant prudential requirements and licensing preconditions before MAS grants them their banking licenses.



MAS chief Ravi Menon said the Central Bank applied a “rigorous, merit-based process to select a strong slate of digital banks”.

“We expect them to thrive alongside the incumbent banks and raise the industry’s bar in delivering quality financial services, particularly for currently underserved businesses and individuals. They will further strengthen Singapore’s financial sector for the digital economy of the future,” he said.

In turn, Ant Group said it was grateful for the opportunity to further contribute to accelerating digital financial innovation and inclusion in Singapore and the region.

“We look forward to building stronger and deeper collaborations with all participants in the financial services industry in Singapore, as we work together to make financial services more accessible for SMEs while supporting local talent development in the process,” Ant Group said in a statement.

Anthony Tan, co-founder of Grab, said they were honored to have this opportunity to build Singapore’s next-generation digital bank, and “open up access to easy-to-understand and relevant financial services”.

Banks.am recalls that the number of fintech companies in Singapore has increased by 70% over the past year to more than 1000. About half of these companies were founded by foreigners.

Singapore has become a popular Asian fintech hub due to the efforts of the city-state’s authorities aimed at attracting foreign experts. There were only 50 fintech companies in Singapore five years ago, but the number has jumped, with 400 emerging just in the past year, according to MAS.

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